How to Buy a Secondary Market Annuity

Buying a secondary market annuity is simpler than the name suggests. You are choosing an existing, court-approved schedule of payments and stepping into it at a discount, so the difference between what you pay and what you collect becomes your yield. This guide walks through each step, from reading a listing to funding the purchase, and the things worth checking before you commit a dollar.

First, what you are actually buying

A "secondary market annuity" is an industry term for the right to receive a fixed schedule of payments that already exists. Most often those are structured settlement payment rights: an original recipient sold their future payments for a lump sum through a court-approved transfer, and that right to receive the schedule is assigned to a new investor. You are buying the payment rights, not an insurance annuity contract, and the payments themselves remain obligations of a top-rated carrier or a state lottery.

Because the schedule is fixed and you buy it at a discount, the effective yield on current inventory runs roughly 4 to 7 percent. The trade for that yield is liquidity: these are long-term holdings, and while a resale or reassignment may be possible with our assistance later, neither the sale nor its price is guaranteed. If you want the full picture of the asset before you shop, start with our secondary market annuities guide.

Step 1: Decide what kind of income you want

There are a few flavors, and they price differently:

• Guaranteed payment rights pay on a fixed schedule regardless of anyone's life, so they are the most predictable.
• Life-contingent payment rights pay only while the original payee is living, which is why they yield more; the streams we place are hedged with a life insurance policy.
• Assigned annuities are in-force insurance annuity contracts reassigned to a new owner.
• Lottery payment rights are state-lottery prize payments assigned by court order.

Knowing which one fits the money you are investing narrows the search quickly.

Step 2: Read a listing

Every listing on our inventory shows the same core facts: the issuing carrier and its rating, the effective yield, the purchase price, the total scheduled payout, the weighted average life, and the full payment schedule with first and final payment dates. Read across those figures rather than anchoring on yield alone. A higher yield usually means a longer wait or a life-contingent structure, and the carrier behind the payments matters as much as the rate. Registering a free account is what unlocks the full terms and available pricing on each deal.

Step 3: Reserve the stream

Inventory is unique. There is one of each stream, and it moves first-come, first-served. When a listing fits, you reserve it by its contract number, which holds it at its quoted rate while the paperwork is prepared. A quick call to our team confirms the details and answers any question about the schedule or the carrier before anything is signed.

Step 4: The court-approved transfer

This is the step that makes the asset defensible. The transfer of the payment rights is completed by a court order, reviewed against the applicable state Structured Settlement Protection Act, so the change of payee is a matter of public record rather than a private handshake. Pacific Structured Assets coordinates the court approval, the assignment, and the chain of title. Most of the inventory we place is originated by our affiliated funder, Catalina Structured Funding, so those files are underwritten in-house from origination through court approval.

Step 5: Fund and collect

Once the transfer is approved and assigned to you, you fund the purchase. From there the payments arrive on the contractual schedule, direct to you, for the life of the stream. Many investors hold these in a self-directed IRA; that route uses a custodian that accepts alternative assets, and it is a well-worn path our team can point you toward. Our guide to buying a payment stream in an IRA covers how that works.

A few things to check before you commit

• The carrier. These payments are one carrier's obligation and are not FDIC-insured or covered by a state guaranty association, so the issuer's financial strength is your protection. We place only top-rated carriers.
• Your time horizon. These suit money you can commit for the long term. If you might need the cash on short notice, a liquid instrument is the better home.
• The schedule. Amounts and dates were fixed in the original settlement, so confirm the first and final payment dates match your income plan.

Frequently asked questions

Do I need to be an accredited investor to buy a secondary market annuity?

No. These are payment rights sold through a court-approved transfer, not registered securities, so there is no accreditation requirement. What matters is that you understand the asset and can commit the capital for the long term.

How long does it take to buy one?

The timeline is driven by the court-approval process, which varies by state and by court calendar. Our team gives you a realistic estimate for a specific listing when you reserve it.

Can advisors place clients into these?

Yes. Brokers and independent advisors place investors into our inventory regularly; see our for advisors page for how a placement runs.

When you are ready to see live listings and available pricing, browse our live inventory, or read the full how it works walkthrough.