Guaranteed Structured Settlement Annuities are the most common type of Secondary Market Annuities we offer. See the section of this site on Structured Settlement Annuities for more background. We’ll focus this page on the Guaranteed Annuity you’re considering buying as a Secondary Market Annuity.
When you see a case like this below you are looking at a guaranteed income stream, as shown in the ‘type’ section in the lower right. All our cases are guaranteed deals unless they specifically state Lottery or Insured Payments in that type area.
A guaranteed secondary market annuity is an annuity payment being made by the Carrier (Prudential Life above) to the payee, who is usually the recipient of a settlement.
We facilitate the transfer of this series of period certain payments from the seller to you, and do so in a Court administered process that is generally uniform in nearly every state.
Most of our cases are like the case above- an existing payment stream with a period certain benefit, and you are simply becoming the new assignee of these payments.
In the case above, there are 7 annual payments of $15,000 starting on 7/24/2016 and lasting until 7/24/2022.
You As The New Assignee
These payments will be made by Prudential Life to you of the person or entity you specify in your purchase documents via our payment servicer- these are absolute and guaranteed by Prudential, and the checks will be cut no matter what- whether you are there to receive them or not! It’s wise to do a little estate planning on the front end, such as using trust, a joint tenant payee name, or account servicer, just in case.
The Seller’s Annuity:
In the seller’s original settlement, they received compensation in the form of an annuity. Understand more in the entire section of this site About Settlements.
The seller settled their case and has a Benefits Letter (See Sample Documents Page) that states something to the effect that “John Doe is entitled to $XXXX per month for life, increasing at 3% annually, with 20 years guaranteed, payable on the 15th of each month through and including 5/15/2031 and thereafter for life. As of 2/15/2013 the monthly payments are $10,350.”
This benefits letter or annuity contract states in usually very simple language what the seller has, and how it is a lifetime payment with a guaranteed and absolute component.
With Guaranteed Secondary Market Annuities, we’re transacting only in the guaranteed and absolute portion of the seller’s benefits. You can explore the rest of the seller’s benefits in the Life Contingent page.
Guaranteed Secondary Market Annuities Summary:
Generally, benefits letters state that payments are for life with XX years guaranteed, and often buyers mistakenly think the payments will cease if the seller dies. This is not the case, as the guaranteed payments accrue to the beneficiary, or to you as the assignee.
In other words, when we go back to the court with the jurisdiction over the case and change the existing settlement to add you as a new payee for a defined set of payments, there is nothing the seller, the carrier, or anyone else can do to interfere with the payments, and the seller’s lifespan has no bearing on the payments they sell and assign to you.