Factored Annuities - A Wise Investment

Factored Annuities

Factor Financial offers factored annuities to investors. These annuities are transferred to the investor via court order, typically in the same county where the original annuitant resides. The investor’s name and address, or the name, account number and address of their chosen 3rd party servicing company will go directly in the court order. The insurance company that issues the annuity payments will supply either an “Acknowledgment Letter” confirming receipt of the court order or will have all parties, including the investor, enter into a stipulation prior to the court hearing.

Factored Annuities with a Guaranteed Payout are a Safe Bet for Investors

We offer investors annuities that are guaranteed. Guaranteed annuities are paid out regardless of whether the original annuitant is living. They are comprised of "period certain" payouts made at pre-determined intervals from highly rated annuity issuers. They generally offer an annual rate of return of between 5 to 6.5 percent depending upon the rating of the annuity issuer by credit and risk rating agencies such as A.M. Best, Fitch, Moody's, and Standard & Poor’s (S&P). The dates the payments are due also plays a factor. Payments due further out in the future pay a bit more than payments due in the relative near future.

Life Contingent Annuities Pay a Bit More to Investors

Life contingent annuity payments are based on the life of the original annuitant. The life contingent annuity transfers (sale or assignment from the original annuitant to us) are backed by a life insurance policy that is collaterally assigned to the investor. This protects the investment. Due to the inherent risk involved with the additional step of securing a life insurance policy, life contingent annuities pay a higher interest rate to investors. Investors can expect between a 6.5 to 8.5 percent return when investing in factored life contingent annuities.

To learn more about investing in factored annuities please call Eric at +1 (781) 242-4000.

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