Ever seen television commercials about instantly getting cash for annuity payments or “Sell My Annuity”? This is called Secondary Market Annuities or SMAs. A secondary market annuity is selling an income annuity to a 3rd party company (Annuity Buyers) for cash in exchange for annuity payments.
What are Secondary Market Annuities and how do they work?
Basically, a secondary market annuity is selling your current income annuity (immediate annuity, deferred income annuity, structured settlements, lottery payouts) at a heavily discounted rate to the Annuity Buyers in exchange for a lump sum of cash.
Secondary market annuities are just income streams currently owned by private parties and resold to another private party.
The new private party will become the new owner of the annuity contract and the pocket annuity income distributions as a long-term investment.
Secondary Market Annuity Examples
Also Known As
- Factored Structured Settlement
- Previously Owned Annuity
- In Force Annuity