Annuity buybacks usually occur when a specialty finance company offers a lump sum cash payment in return for previously purchased annuity payments. Major annuity providers have recently begun to offer buybacks as a way to compete for customers wanting to cash out annuities. Annuity providers are not only buying back personal annuities, but also structured settlement payments that they previously sold to customers. The problem for some annuity companies is that specialty financing companies are sometimes able to offer customers more money at a given time, thus capturing most of the buyback market. What is on the horizon for such competitions? Let's take a look.
Where Competition Comes From?
Competition for annuity buybacks falls under three main categories. The first is specialty finance companies whose primary business model is buying annuity payments as investments. These companies can have multiple funding sources, and can often offer very good pricing. The second is emergence of annuity providers themselves offering a similar service to specialty finance companies, buying back their own policies.
Annuity Buyers
To learn more about Annuity Buyers visit here: Annuity Buyer's guide
Where Competition Comes From?
Competition for annuity buybacks falls under three main categories. The first is specialty finance companies whose primary business model is buying annuity payments as investments. These companies can have multiple funding sources, and can often offer very good pricing. The second is emergence of annuity providers themselves offering a similar service to specialty finance companies, buying back their own policies.
Annuity Buyers
To learn more about Annuity Buyers visit here: Annuity Buyer's guide
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