D'Alessandro & Associates
In Force Fixed Annuity Structured Settlements
An In Force Fixed Annuity Structured Settlement is a payment stream that is purchased by an investor from a pre-existing annuity.
The origin of an In Force Fixed Annuity Structured Settlement is a court-ordered annuity from a major insurance carrier, awarded to a plaintiff, in a personal injury lawsuit.
In Force Fixed Annuity Structured Settlements are high-yield, low-risk financial products that are paid by top-rated insurance carriers.
By nature of the secondary market purchase process, In Force Fixed Annuity Structured Settlements come at substantially higher returns than similar annuity products purchased from the same insurance carrier.
Each In Force Fixed Annuity Structured Settlement is unique and comes in various amounts and durations.
Our clients use our products for retirement planning, CD alternatives, legacy and estate planning, college planning, and countless other applications.
The safety and yield of In Force Fixed Annuity Structured Settlements have proven to be an attractive asset class to many publicly-traded companies over the past two decades.
Frequently Asked Questions
1. What are In Force Fixed Annuity Structured Settlements?
In Force Fixed Annuity Structured Settlements, also known as secondary market structured settlements or SSI's are factored structured settlements, are alternative investments that pay up to a 8% annual return, with a guarantee from an insurance carrier or major corporation that is rated AM Best Excellent A to A++.
The source of an SSI payment are streams of court-ordered cash payments, payments of which are made by an insurance carrier or a major corporation, to a plaintiff who won a personal injury lawsuit.
The original plaintiff then sells these scheduled payments for a lump sum to a purchaser. By court order, the insurance company or major corporation must reassign the stream of payments to the new purchaser.
Simply put, these are re-assigned cash flows typically guaranteed by major insurance carriers or companies. Typical payers are MetLife, Prudential, NY Life, Hartford, Transamerica and a host of other major insurance carriers as well as many Fortune 500 companies.
The yields can be many times higher than other products with comparable safety because they are puchased and reissued at significant discounts.
Yields on In Force Annuity Structured Settlements typically range from 4% to 6.5%.
2. Why Am I Getting Such a Good Rate of Return?
In Force Fixed Annuity Structured Settlements offer exceptional yields because they are purchased and reassigned at significant discounts (remember, the original plaintiff chooses to sell their stream of payments at a discount for a lump sum payment).
3. What is the Legal Structure of the Purchase of an In Force Fixed Annuity Structured Settlement?
D'Alessandro & Associates and our utilizing factoring companies acquire the payment rights to In Force Fixed Annuity Structure Settlements from an exisiting awarded plaintiff and transfer the payment rights to you, the buyer, through a court ordered transfer process.
Your name and assignee information will be stated in the executed court order, which is generally obtained in the state where the existing plaintiff resides.
The court will direct the Insurance Company who issued the fixed term payment stream to pay you all of the cash payments you are acquiring when they are due.
Payments are made whether the existing original plantiff or the buyer lives or dies during the period that the payments are due.
Upon the death of the buyer, the payments continue to the joint owner(s) or other owner(s) or the estate of the buyer, as designated.
Payments are typically made by a check mailed to your designated address or by diect deposit into your bank account.
You may usually select your preferred method of payment. As the buyer, you may change the address for payment or bank account information designation at any time by informing the insurance company directly.
4. Who Buys In Force Fixed Annuity Structured Settlements?
Purchasers of In Force Fixed Annuity Structured Settlements are usually conservative investors who are no longer tolerant of the low interest rates on their CDs and corporate and government bonds, but who want a similar level of safety and credit quality.
The products have become very popular among purchasers seeking above average returns with similar safety to principal and interest normally associated with insurance products.
In Force Fixed Annuity Structured Settlements are used by purchasers seeking additional solutions to retirement planning, college funding, estate planning, and/or daily living cash requirement needs.
5. What is the Typical Term and Purchase Amount on In Force Fixed Annuity Structured Settlements?
The purchase price of In Force Fixed Annuity Structured Settlements can range from as low as $15,000 to as high as the millions.
Terms can range from 1 to 35 years and cash-flow can take the form of annual payments, monthly payments, quarterly payments and/or one lump sum.
6. How is the Rate of Return Determined?
The yield or rate of In Force Fixed Annuity Structured Settlements are determined by the current market at the time of purchase.
Other factors such as what the buyer is prepared to accept as a return on his or her purchase of an In Force Fixed Annuity Structured Settlement, as well as the duration of the payout and the insurance company's financial rating play a key role in determining the yield to the purchaser.
7. Can Buyers Sell Their In Force Fixed Annuity Structured Settlements?
Once you purchase an In Force Fixed Annuity Structured Settlement, it generally must be held to the completion of its term. In Force Fixed Annuity Structured Settlements are generally not liquid or marketable. The transfer court order could state that there are no future reassignment rights permitted.
8. What Happens To My Money When I Die?
In Force Fixed Annuity Structured Settlements are guaranteed to pay for the life of the policy. If the beneficiary of the policy dies, payments will continue to the estate.
9. What Documentation Will I Received After Closing?
Shortly after the closing of the transaction, you will receive a Closing CD.
The Closing CD will contain all of the documents related to the transaction including but not limited to the purchase agreement, due diligence files, lien searches, originals settlement terms, executed court order as well as the assignment agreement which contains the details of the transaction and payments being reassigned.
Contact us today to learn more and to hear about our current inventory!
412.344.2500