What is a Secondary Market Annuity?
Find Out How to Take Advantage of this exceptionally High Rate of Return.
An annuity is a contract between you and an issuer in which you agree to
pay the issuer principal and, in exchange, the issuer guarantees you fixed
or variable payments over a set period of time. While annuities are not
insurance policies, they are issued by insurance companies. Annuities
are similar to retirement plans in that they can be funded in one lump sum
or in a series of small payments. All capital in an annuity grows and compounds
tax-deferred until you begin making withdrawals. Unlike retirement plans,
however, there is no limit as to how much you can invest in annuities.So
what if an individual wants to sell their annuity and take the lump sum?
When an individual does not want to wait, or can’t afford to wait, years
to reap the entire payout, they can sell their future payments in exchange
for a lump sum. These resold annuities are referred to as Secondary Market
Annuities (also known as Secondary Market Income Annuities, Secondary Market
Fixed Annuities,
Secondary Market Immediate Annuities or factored structured settlements).You
can purchase a Secondary Market Annuity from the original owner at a discount
and have the payments assigned to you, taking advantage of the high rate
of return. How do the insurance companies pay such high rates? The insurance
company is required to make the regular payments, without regard for whether
payments are made to the original annuity owner, or a secondary owner. Originally,
the income streams were issued at current market rates. The increased yield
is created when the original annuity owner sells the payments at a discount,
not because the insurance company is paying higher rates.Where can an investor
find a Secondary Market Annuity? Annuity FYI offers real life examples of
recent Secondary Market deals showing the best
annuity rates on the market. Some guaranteed effective interest rates
are as high as 7.75 percent. Compare companies, projected purchase prices,
guaranteed payments, and interest rates for actual Secondary Market Annuity
sales. Issuing insurance companies include MetLife, Prudential, John Hancock,
Aviva, Genworth Financial, Monumental Life, State Farm, New York Life, American
General, Fidelity, Allstate, Hartford, and Pacific Life. Contact an expert
to find out what is available in your state and whether a Secondary Market
Annuity is right for you. Annuity FYI is an objective annuities resource
offering easy to read tables, timely articles, recommendations and a wealth
of information about all types of annuities. Visit AnnuityFYI.com to learn
more about immediate, fixed, bonus, equity indexed, no surrender, no load
and variable
annuities.
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