Secondary market payment rights are available to anybody who is interested in a conservative investment strategy and who finds the idea of purchasing an annuity sold by an individual to be suitable to that end. A secondary market purchase has to be approved by a court, but you do not have to go to court for this. Genex Capital Corporation will take care of the legal matters for you. We cover the initial court transfer costs.
How Does it Work
People who receive an annuity generally get that annuity because of a personal injury claim or because of a lottery win. In many cases, these individuals find out that they do not want to wait for a series of structured payments to trickle in over the years and decide to sell their annuity outright.
Assured Annuity purchases these annuities and sells them to interested buyers. The buyers get the benefit of a substantial return on their investment and the seller gets the advantage of all of their money coming in a lump sum, allowing them to forgo the wait involved in structured settlement payments.
This sets up a win/win situation where an buyer?who needs a generally above average investment with a good return gets exactly what they’re looking for and someone who needed money fast gets that money without having to resort to methods of getting loans that are inadvisable financially.
What Should I Know?
It’s important to keep in mind the sale of secondary market annuities is governed by State and Federal Law. The law where the annuity was first awarded will apply in this regard. Genex Capital has legal experts with experience to generally make the transfer process smooth.
Value and Time
Most of the time, a typical transaction will be between $30,000 and $100,000 in present value. There are cases, however, where the investment may be more or less than this. Most of the time, the payment streams are ordered to be paid out within 5 to 30 years, though there are terms that range anywhere from 2 to 40 years. It depends upon the size of the annuity and the exact arrangement that was made at the time it was settled in litigation or, if the annuity comes from lottery winnings, whatever rules applied to the lottery annuity.
The court will issue an order to the insurance company or other agency paying out the annuity that the buyer either directly or through a third person servicing company is to receive all future payments. The seller of the annuity receives a lump sum payment from Assured Annuity, and the court order requires that the original annuitant relinquish the payment rights. After that, you, the buyer, become the assignee of the payment stream?and scheduled to receive all of the payments as the original annuitant normally would have. That annuitant gets the money that they wanted and you get the investment that you paid for.