Updated: Mar 30
Thinking of selling an Annuity or Structured Settlement? The Structured Settlement Protection Act
Was established to protect the Owners of Annuities and Structured Settlements from falling prey to predatory purchasing practices. If you want to sell an annuity or structured settlement for cash, or pursue a settlement loan including cash for life insurance it's important to consider the consequences.
A structured settlement is a financial arrangement between an insurance company and a person that arranges for the payment of court awards and lawsuit settlements in tax free installments instead of in a single payment. Each structure is created for the specific individual so that it’s valuable and helpful for them. The payment period and amounts will vary.
Your attorney and structured settlements professional invested time, effort and expertise in creating your individual settlement plan, so we recommend that any decision you’re considering to sell the payments be carefully and seriously considered. Often, it’s just better for your situation to keep your payments rather than sell them.
While the original settlement was set up with your future needs in mind, times change. So, you may be faced with the need to adapt to unexpected events in your life. That’s when selling part or all of your structured settlement may be a good option so you can get cash for structured settlement payments.
Regardless of whether you choose a lump-sum payment or a structured settlement, it is worth your while to consult with a tax professional, accountant, or financial planner to determine how the structure of your award or settlement will help you to maximize your outcome based on your personal circumstances and to achieve your financial goals.
The purchasers must advise the seller in writing to seek professional advice.
In South Carolina:
The purchaser must advise the seller in writing to seek professional advice. Transfers of structured settlements related to workers’ compensation benefits are not allowed.
"Caveat Emptor," the Latin motto which means "let the buyer beware," but in this case "Caveat Venditor" meaning "let the seller beware," has a clearer ring for anyone considering the sale of these assets.
Selling Your Life Insurance Policy:
What you should know about Life and viatical Settlements
life settlement is the sale of a life insurance policy to a third party. The owner of a life insurance policy sells it for a cash payment that is less than the full amount of the death benefit. The buyer becomes the new owner and/or beneficiary of the life insurance policy, pays all future premiums and collects the full amount of the death benefit when the insured dies.
People decide to sell their life insurance policies for many reasons. When an individual with a terminal or chronic illness sells his or her life insurance policy, that is known as a viatical settlement. When an individual who does not have a terminal or chronic illness sells a policy for other reasons, including changed needs of dependents, wanting to reduce premiums, and cash for meeting expenses, that is known as a life settlement.
The National Association of Insurance Commissioners (NAIC) has a great informative flyer on
selling life insurance and vatical settlements:
As a Registered Investment Advisor, Akin Investment will be happy to meet with the interested parties. We will provide a comprehensive review of the recipients financial condition and discuss the options that are available to them. At the conclusion of this review we will provide an "Independent Professional Advice" letter.
Need help? I'll be happy to guide you. Remember Akin Investments is a fiduciary advisor. We sell no insurance or financial products.
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