Companies Offering 9% Fixed Annuities???

Freddie · 10-20-2009, 10:14 AM

I got email from one of the insurance publicatiosn where they have some articles and lots of banner ads. One company is offering up to 9% fixed annuities???

Are they buying up fixed annuities from people at a discount in a secondary market and reselling them to new policy holders?

Anyone ever deal with this or is it far too risky? If anyone is interested I will try to find the link to the company. I am not pushing it. I just was wondering how they might do it and if it was worth checking into. Thanks.

Mr. Bill · 10-20-2009, 05:24 PM

Not sure, but someone posted in "insurance offers" something a bit mysterious, turns out it was life settlements. Wouldn't surprise me a bit if a company was offering a 9% fixed "annuity" that turns out a la Charles Keating/Lincoln Savings & Loan that subsequently invests the proceeds into life settlements. Caveat emptor.

What do you think it is?

Freddie · 10-21-2009, 01:21 AM

Originally Posted by Mr. Bill

Not sure, but someone posted in "insurance offers" something a bit mysterious, turns out it was life settlements. Wouldn't surprise me a bit if a company was offering a 9% fixed "annuity" that turns out a la Charles Keating/Lincoln Savings & Loan that subsequently invests the proceeds into life settlements. Caveat emptor.

What do you think it is?

I will find the email and ask them to send more info. I think a company goes to people who may have say a 4.5% 5 year annuity. They want out and sell it at a discount (cheap). This company then resells it. Reps resell it for them.

I think that is what it is. I will find out an private mail you. I am not trying to spam or pitch it. I was just curious if anyone knew anything about it.

padthaiforlunch · 10-21-2009, 09:08 AM

Let me know what you find.

fina · 11-04-2009, 04:26 PM

Kinda like viatical settlements??

InsureGuy5 · 11-05-2009, 10:55 AM

If it sounds too good to be true...

In my experience, anything paying higher than the going rate involves considerable risk. I wonder if Alan Stanford is selling annuities from his jail cell?

Freddie · 11-05-2009, 11:14 AM

I checked it out. They buy up annuities and structured settlements. Probably lawsuit settlements. They can stretch out for 15 years or so. The highest yield I saw was 7.25% and the inventory was limited. The guy appears to be a straight shooter, it appears to be legit but you have to wait a long time for your money and there is no liquidity.

One of the annuities with the income side offering about 7.5% is probably just as good or better.