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What Exactly are Secondary
Market Annuities?
Think of Secondary Market
Annuities as Pre-Owned
Annuities. Simply put what this
means is if somebody has an
accident and receives a
favorable judgment their payment
is usually given to them in the
form of an annuity. They are
paid a certain amount of money
over a defined period of time.
What people don’t often realize
is that these annuities can be
bought and sold. This has been a
strategy that corporate
investors have been aware of for
many years. But it has only been
recently that individuals have
been offered an opportunity to
participate in these safe and
secure investments.
Why Do People Sell These
Annuities?
For a variety of reasons:
Sometimes the recipient needs
the money faster than the
schedule payments. Or they are
seeking a lump to invest in
buying a house. Or perhaps their
health is declining and they
would like to have access to
more of the money immediately.
Finally, in some instances, the
recipient has actually passed
away and their estate would like
to make a payout to their heirs.
To Sum It Up:
Annuities can come back on the
market for a variety of reasons
which offers an opportunity for
you to participate.
Here is
how it works.
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