marc82much
Super Genius
- 244
Anyone know how I can invest some of my hard earned $ into a STRUCTURED SETTLEMENT that will provide me a predictable cash flow? Are there companies that sell these things to investors (like me)?
Buying a STRUCTERED SETTLEMENT cash flow
- Thread starter marc82much
- Start date
Why not just look at regular annuities (SPIAs, DIAs, FIAs w lifetime income, etc)?
You can look around for secondary market annuities (which may include structured settlements). Google should have results for that term.
They're like bonds where there is an inventory available. Payouts are all over the place. Are you insurance licensed? You still need to have an agent involved.
- Thread starter
- #3
marc82much
Super Genius
- 244
I want information about buying a stream of cash flow from a Structured Settlement. Not information about annuities. Not information about secondary market annuities. Yes, I am licensed, since 1977.
The secondary annuity market IS the structured settlements market.
They're just called that but they aren't registered as actual annuities even though there is a carrier involved.
- Thread starter
- #5
marc82much
Super Genius
- 244
Also, looking specifically for malpractice award structured settlements. Not people who sold their annuity so they could get a lump sum. Malpractice award structured settlements.
I apologize. I must not understand what you're asking.
If someone gets a malpractice award structured settlement, either the defendant's malpractice insurance makes ongoing payments to the plaintiff (doesn't happen) or they pay a lump sum to an insurance carrier who then guarantees the payouts.
If someone prefers to have the lump sum, they can sell that interest to an investor. That's what the SMA market is comprised of.
These aren't annuities you can buy "off the shelf" and they're often by carriers who aren't in the traditional annuity space (like Berkshire or Talcott) and they follow the terms of the original settlement.
I must be missing something.
- Thread starter
- #7
marc82much
Super Genius
- 244
If the beneficiary of a malpractice structured settlement award, that is currently paying out, wants to cash out, they have to go to court and get permission. Then, if they get it, they can sell their cash flow for a lump sum and the new owner gets the cash flow from the insurance company. Malpractice structured settlement money is tax free to the recipient. That tax free benefit goes with the settlement, if they sell it and you buy it. That is why I am interested in ONLY malpractice structured settlements.
- 4,787
You may indeed be correct. However, in most insurance or annuity policies bought by strangers/investors with no original insurable interest in the insured, the investor is taxed on the gains over & above what was invested to purchase the contract from the original owner. IE, if I pay $50k for a $250k life insurance policy & I collect $250k, I would owe capital gains on the $200k I made on it even though the original owners beneficiaries wouldn't have been taxed if they owned it.
Would love to see the tax code referenced where a malpractice award is tax free on all sums received even if it is sold to investors, hedge funds, private equity, etc
- 4,787
I don't think this is true for investor that is a stranger to the contract. Only the principal invested would be tax free. Same for life insurance bought by investor. Any amount received over & above principal invested would be taxable
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Its still all annuities, usually.
A lawsuit settlement that is structured over a number of years is often paid for via a lump sum into an annuity. Often it is required in the court order to guarantee the payments will occur.
A lawsuit settlement that is structured over a number of years is often paid for via a lump sum into an annuity. Often it is required in the court order to guarantee the payments will occur.
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