Smart Ideas: Settlements Revisited

Essential Things to Know About Secondary Market Annuities

Secondary Market Annuities are able to offer higher rates of return than other types of annuities, such as indexed annuities, certificate of deposits and others. Purchasing secondary market annuities is not a complex thing to do, as others would think. Before one jumps into buying secondary market annuities, it is important that one seeks consult from an investment planning advisor that is competent and an expert in this field of annuity business. This makes it possible for the buyer to have his questions catered to before he can make an agreement with the secondary market annuity broker. They buyer will also be able to benefit from the financial planning advisor because they can suggest appropriate settlement plans that will cater the financial needs of the buyer.

Before one can purchase secondary market annuities, one should be made aware of three essential things when it comes to this:

One should know what a Secondary Market Annuity is

You can be able to find a lot of television advertisements on companies that are more than willing to pay lump sums of cash for structured settlements.

Structured settlements are awarded to people who have been victims of personal injury for a certain number of years, or maybe for a lifetime depending on the case. Due to unforeseen events, people opt to get cash from selling their structured settlements in order to get bigger amounts of money rather than waiting for the monthly payment.

Secondary Market Annuities are basically structured settlements that are resold by certain clients who want to earn more cash faster. Lottery winners are the most common example. They can choose whether to receive the money through regular monthly payments for thirty years, or they can choose to have the lump sum of cash instantly for a lot lesser than the total amount.

Whole Will Give the Payments?

As previously mentioned, a person will sell their structured settlement or annuity for a lump sum cash payment, this will create the secondary market annuity for the mentioned annuities. Annuities are frequently sold by companies handling life insurances. You can be sure that a life insurance company is safe and it is one of the oldest types of firm in the market.

This type of companies will not care who they address their payments to. It is stated by law that they have to sometimes make the needed payments to the true owner or the new owner. This will mean that the money owned by the insurance holders is real and backed up by the insurance company making their nights a little less sleepless.

How Can You Make A Little Bit of Cash?

Potential investors will have the possibility of getting a much higher yield compared to old-style annuities and certificate of deposits thanks to the secondary market for annuities. The chance of having a big yield for each new investor is very possible.

The options that are also included for the mentioned annuities can include waiting to get the income sometime in the future. The good thing about this type of contract is that you can choose for yourself the duration, yield and when the payments can begin. The mentioned contracts could change from time to time, due to much newer investors than contracts.

– Richard Casada is a frequent public speaker and accomplished blogger. He enjoys keeping up on the latest industry news, learning & writing, and practicing yoga. Get more details about this article’s subject: purchasing secondary market annuities You can find his contact information on the author’s website.