Secondary Market Annuities — Safe Court-Ordered
Factored Annuity Payments
Backed by Court Order
Factor Financial offers court-ordered annuity payment transfers to investors. The hearings typically take place in the county where the original annuitant resides. The investor’s name and address — or the name, account number, and address of a third-party servicing company — are included directly in the court order. The issuing insurance company will provide an acknowledgment letter confirming receipt of the court order. In some cases, all parties, including the investor, will enter into a stipulation before the court hearing in lieu of an acknowledgment letter.
Guaranteed vs Life Contingent Annuities
Guaranteed (Period Certain) Factored Annuity Payments
Guaranteed factored annuity payments, also known as period certain secondary market annuities, pay amounts at predetermined intervals regardless of whether the original annuitant is living. Some annuities include a contractual cost-of-living adjustment (COLA), typically 3% annually, and in some cases up to 5%. These annuities are issued by highly rated insurance companies, with financial strength verified by agencies such as AM Best, Fitch, Moody’s, and S&P Global.
Life Contingent Factored Annuities
Life contingent annuity payments are based on the life of the original annuitant. These annuities are secured through a collateral assignment of a life insurance policy, which protects the investor’s interest. Due to the additional dependency on a life insurance policy, life contingent annuities carry slightly higher risk, but also offer higher returns. Investors can expect annual returns between 6.5% and 9%, based on the payment schedule of the annuity transfer.
To learn more about investing in secondary market annuities, please call Eric at +1 (561) 600-8620 or contact us to see our current inventory.
