Whenever an individual receiving periodic payments under a structured settlement wishes to sell some or all of his future payments for a lump sum of, the cash flows are sold at a discount in exchange for the lump sum payment. This discounted structured settlement is then available for sale to those who buy settlement payments. This way of acquiring the payment streams at a discount directly from the seller is how the buyer receives very favorable yields. This transaction is normally facilitated by a financial broker on behalf of the seller (or annuitant) and the buyer.

These structured settlements usually make more than twice the yearly rates of municipal or corporate bonds, bank issued certificates of deposit (CDs), or government issued treasury securities. Those who buy structured settlement payments can certainly purchase a structured settlement annuity directly from an insurance company, but these direct annuity investments are backed by the same insurance companies as the structured settlements arranged by a broker, and they are typically originated with large sales charges or commissions, and offer considerably lower yields.

Those who buy structured settlement payments can be individuals, retirement plans, corporate entities, foundations, trusts, through investment clubs, or group investment accounts.

The Primary Advantages of Buying Structured Settlement Annuities

1.    significantly higher yields from structured settlement annuities when compared to fixed rate investments

2.    a reliable source of income over a defined period of time, based on the terms and conditions of the structured settlement he bought

3.    the opportunity to increase the buyer’s yields in personal holdings

4.    maximum income after retirement

5.    the preservation of principal for later years

6.    control throughout the investment process

7.    the backing/support of a annuity contract issued by a state regulated insurance carrier with a high credit rating (from “A” to “AAA”)

8.    control throughout the investment process

Those who buy settlement payments Structured settlement purchasers receive their assignment of the structured settlement payment rights directly from the seller through an approved court approval process, and the purchaser receives the future cash flows directly from the rated insurance company that is obligated to make the payments. At no time during the lifecycle of the asset should the broker have possession, or control, of the purchaser’s money.