What is a Secondary Market Annuity?
A Secondary Market Annuity (or SMA) is a discounted cash flow. Secondary Market Annuities originate with the resale of an existing annuity income stream. These income streams originate from factored structured settlements, in-force period certain annuities, or a lottery prize payout.
These pre-defined, fixed term income streams offer a higher yield because of their discount rate. Through a process involving a court and assignment contracts, a buyer receives the right to receive the existing payment stream from the current recipient of the income.
The vast majority of Secondary Market Annuities we sell, and which we focus in this website, come from structured settlements, whereby the original payee/ recipient decides to sell their future payments for cash today. This discounted sale transaction creates an opportunity for a profitable, safe investment in an in-force payment stream.
Secondary Market Annuities are guaranteed payment streams over a specific period of time, at a fixed rate of return.
This investment is generally considered to be a good vehicle for “safe money” savings.
We only offer SMAs from those insurance companies that are highly rated by Standard & Poor’s and other agencies for claims paying ability, making the Secondary Market Income Annuities we offer one of the safest forms of fixed term purchases available today.
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.