So just what are Structured Settlements?
In a typical Secondary Market Annuity, an individual is the payee of an existing Structured Settlement annuity payment stream. In these pages, we’ll detail the Structured Settlement industry. Much of this information is ultimately not relevant to your purchase of an SMA, but is here for your general knowledge.
How Structured Settlement Annuities Originate:
In court cases, lawsuits, and any number of other legal situations, injured parties can elect to take their monetary awards as structured settlements over time. These payment streams range from regular monthly checks, to large long term future lump sums, and everything in between. The National Structured Settlement Trade Association offers great information on the industry here http://www.nssta.com/.
Structured settlement transactions involve a plaintiff or claimant, the person who wins the case, and a defendant, who is the loser or the insurance company that insures the losing party. through an assignment or a qualified settlement fund, the obligations to close the case are assigned and cases are settled. The pages in the menu above detail each of the steps.
How Structured Settlement Annuities Become Secondary Market Annuities
Now our business in secondary market annuities comes into being because people’s circumstances change, and they may find that they need cash now instead of payments later. Using the services of a factoring company, they sell future payments at a discount for cash today.
Because an individual needs cash today instead of payments tomorrow, you have the opportunity to buy payments tomorrow at a discount today. That is the essence of our market and your opportunity.
To learn more about how the structured settlements become Secondary Market Annuities available to you as an individual investor, be sure to sign up for a membership to this website for access to the world’s largest inventory and for complete information about this exciting marketplace.