Secondary Market Annuities FAQ's
What are structured settlements?
Structured settlements are simply payment streams from fixed annuities. Woodbridge offers annuity payments streams from investment annuities, as well as annuities that fund lottery winnings and personal injury settlements where the plaintiff receives compensation at regular intervals over several years.
Are annuity payment streams risky?
All financial opportunities carry some degree of risk. We believe the buyer’s risk is mitigated by the fact that annuity payment streams offered by Woodbridge are backed and paid by A-rated insurance companies. Further, even if the insurer that issued the annuity merges, is acquired, or ceases operations, so-called runoff policies protect and pay the company’s outstanding obligations, such as outstanding and future annuity payments.
Why should annuity payment streams be included in my portfolio?
Many clients like annuity payment stream because they are “uncorrelated”. Unlike stocks and bonds, annuity payment streams are credit obligations of highly rated insurance companies. This means annuity payments streams are generally unaffected by recessions, Federal Reserve policies, real estate values, and a variety of other variables that often cause volatility in stocks and bonds.
What is the yield for structured settlements?
Structured settlements offered by Woodbridge offer clients a 4% to 7% annual return.
Do I have to tie up my capital for a long time?
Because annuities with regular payments have varying terms, clients can choose a payment stream with a term that best matches their needs.
What are the advantages of annuity payments streams?
Clients who buy these annuity payment streams begin receiving their payments almost immediately, and thereafter receive payments monthly. In addition, payment streams offered by Woodbridge may be safer than comparable alternatives because they are backed by insurance companies rated A or better by insurance rater A.M. Best Company.
What types of funds can I use for lending?
Lenders can use qualified or non-qualified funds, an IRA, Trust, LLC, Pension, 401k or lend in their own name.