Second Market Annuities
Sometimes annuitants can elect to sell their future payments from an existing annuity income stream, either from an Immediate Annuity, a Factored Structured Settlement, or a Lottery Prize Payout contract to someone else in exchange for a lump sum payment today. The "resale" of these annuities are Secondary Market Annuities or factored structured settlements.
Yields on Secondary Market Annuities are higher simply because the seller of the payment stream is willing to sell at a discount for cash today. Clients benefit from that discount and receive a higher yield on the cash flow compared to comparable annuity products available in the open markets. In contrast to variable annuities and fixed indexed annuities, secondary market annuities have no fees or ongoing costs other than account servicing and IRA costs if applicable. The purchase price for a secondary market annuity includes all legal review, closing costs, and transaction costs. There is no annual cost, with the sole exception of nominal account servicing and costs to administer your IRA if applicable.
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