Ready to Buy an In-Force™ Fixed Term Annuity?
Posted on June 12, 2013
Have you made the decision that an In-Force™ Fixed Term Annuity is the right move for you? Ready to get started but just aren’t sure how to do it? Today, you will learn what is involved in becoming a buyer, how to pay for your In-Force™ Fixed Term Annuity and how it all works with the nitty-gritty details.
To become a Buyer, you must:
- Execute a Receivable Purchase Agreement (RPA). The RPA sets out the terms of the relationship between you, the Buyer, and Bulbrook/Drislane and the transaction process.
- Provide the information in the Customer Identification Program.
- Fund and close transactions in accordance with the terms of the RPA.
Individuals remit payment for In-Force™ Fixed Term Annuities in two stages:
- A 10% deposit at the time the Existing Annuitant executes a Sale and Assignment Agreement with Bulbrook/Drislane.
- The balance of the purchase price upon receipt of the court transfer order naming you, the Buyer, as the new Payee.
Where are all the funds held until the closing? They are kept in a segregated account. The closing of each In-Force™ Fixed Term Annuity transaction will occur in accordance with the Receivable Purchase Agreement and only after all conditions precedent have been met, including but not limited to Bulbrook/Drislane obtaining the court order that directs the insurance company to pay the annuity payments to you, the Buyer, as and when due.
Wonder about whether you can ever sell your In-Force™ Fixed Term Annuity? The answer to that question is no. You must hold it to the completion of its term.
When it comes to fees and expenses, you as the Buyer will not be charged any additional fees or expenses when acquiring an In-Force™ Fixed Term Annuity.
The broker of record generally receives a sales commission upon the closing of each In-Force™ Fixed Term Annuity. The amount of commission is negotiated between the broker and Bulbrook/Drislane. The price you pay for each In-Force™ Fixed Term Annuities and the agreed upon rate of return constitute the net price and actual rate of return you will earn. The sales commission is an extra expense paid by Bulbrook/Drislane.
Yes, you will have to pay tax on your In-Force™ Fixed Term Annuity but how much depends on where you reside.
If you are ready to move forward, we can help. Just contact us today!