Companies Offering 9% Fixed Annuities???

[Freddie]

I got email from one of the insurance publicatiosn where they have some articles and lots of banner ads. One company is offering up to 9% fixed annuities???

Are they buying up fixed annuities from people at a discount in a secondary market and reselling them to new policy holders?

Anyone ever deal with this or is it far too risky? If anyone is interested I will try to find the link to the company. I am not pushing it. I just was wondering how they might do it and if it was worth checking into. Thanks.

 

[Mr. Bill]

Not sure, but someone posted in "insurance offers" something a bit mysterious, turns out it was life settlements. Wouldn't surprise me a bit if a company was offering a 9% fixed "annuity" that turns out a la Charles Keating/Lincoln Savings & Loan that subsequently invests the proceeds into life settlements. Caveat emptor.

What do you think it is?

 

[Freddie]

Not sure, but someone posted in "insurance offers" something a bit mysterious, turns out it was life settlements. Wouldn't surprise me a bit if a company was offering a 9% fixed "annuity" that turns out a la Charles Keating/Lincoln Savings & Loan that subsequently invests the proceeds into life settlements. Caveat emptor.

What do you think it is?

I will find the email and ask them to send more info. I think a company goes to people who may have say a 4.5% 5 year annuity. They want out and sell it at a discount (cheap). This company then resells it. Reps resell it for them.

I think that is what it is. I will find out an private mail you. I am not trying to spam or pitch it. I was just curious if anyone knew anything about it.

 

[padthaiforlunch]

Let me know what you find.

 

[fina]

kinda like viatical settlements??

 

[InsureGuy5]

If it sounds too good to be true...

In my experience, anything paying higher than the going rate involves considerable risk. I wonder if Alan Stanford is selling annuities from his jail cell?

 

[Freddie]

I checked it out. They buy up annuities and structured settlements. Probably lawsuit settlements. They can stretch out for 15 years or so. The highest yield I saw was 7.25% and the inventory was limited. The guy appears to be a straight shooter, it appears to be legit but you have to wait a long time for your money and there is no liquidity.

One of the annuities with the income side offering about 7.5% is probably just as good or better.

 

[than]

I checked it out. They buy up annuities and structured settlements. Probably lawsuit settlements. They can stretch out for 15 years or so. The highest yield I saw was 7.25% and the inventory was limited. The guy appears to be a straight shooter, it appears to be legit but you have to wait a long time for your money and there is no liquidity.

One of the annuities with the income side offering about 7.5% is probably just as good or better.

As this thread is now several years old, the resale of Structured Settlement Annuity industry for retail investors and agents was in its infancy at the time of the original post. Rates are not 8-9% anymore, but it's alive and well still, and is an alternative for agents looking options in a depressing low fixed annuity yield world.