Pacific Structured Assets

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Guaranteed structured settlement payments

Guaranteed Structured Settlement Payment Rights

The right to receive a fixed, court-ordered stream of structured settlement payments paid by a large insurance carrier. Payments are made on the scheduled dates regardless of whether the original payee is living, at estimated yields the retail annuity market rarely matches.

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Yields on placed inventory have historically run 47%. These are long-term holdings with limited liquidity and are not FDIC-insured or securities.

Guaranteed, explained

What guaranteed structured settlement payment rights are

The right to receive structured settlement payments paid by a large insurance company such as MetLife or Prudential. Payments are made on a fixed schedule regardless of whether the original payee is living.

When someone who receives a structured settlement chooses to sell some or all of their future payments for a lump sum, a court reviews and approves the transfer. As an investor, you purchase the right to receive those same payments, still funded by the original insurance carrier. You are not buying an annuity contract or an insurance product; you are buying a court-assigned right to a defined series of future payments.

Because the payment amounts and dates are fixed in the underlying settlement and confirmed by court order, they are known in advance. You buy that defined series of future dollars at a discount today. The difference between what you pay and what you collect is your return. This is the asset the industry loosely calls a “secondary market annuity,” though it is not an annuity.

Why the estimated yields run higher

The estimated yield is typically higher than a newly issued retail annuity of similar credit quality because you buy at the secondary-market price rather than the retail price an insurer charges on a fresh contract.

There is no new sales load or agent commission in your entry price, and the original payee has already accepted a discount in exchange for immediate cash. That discount becomes your estimated yield. The carrier funding the payments is unchanged, often a name like Berkshire Hathaway, American General, New York Life, MetLife, or another top-rated issuer.

Who it suits

  • Investors who want predictable, contractually fixed payments rather than market-linked returns
  • Buyers building a bond-like ladder of known payment dates for retirement or a future expense
  • Self-directed and trust accounts seeking yield above comparable Treasuries or CDs
  • Anyone comfortable holding a long-term position with limited liquidity in exchange for the estimated yield

Risks to weigh

  • These are payment rights, not annuities: they have limited liquidity and there is no daily or public market. Resale or reassignment to another buyer may be possible with our assistance, but it is not guaranteed as to availability or price, so plan to hold for the long term.
  • Payments depend on the claims-paying ability of the funding carrier; they are not FDIC-insured, are not securities, and are not covered by any state guaranty association.
  • The return is fixed at purchase and will not rise if interest rates climb after you buy.
  • Inventory is first-come, first-served and priced at time of reservation; rates and availability change.

Common questions

Guaranteed FAQ

Are guaranteed structured settlement payment rights annuities?
No. You are buying the court-approved right to receive factored structured settlement payments. That right is not an annuity, an insurance product, or a security, and it is not covered by a state insurance guaranty association. The payments themselves are funded by a top-rated insurance carrier and are made on a fixed schedule regardless of whether the original payee is living.
Why are the yields higher than a new annuity?
You buy at the secondary-market price instead of the retail price an insurer charges on a new contract. There is no new sales commission in your entry price, and the original recipient already accepted a discount for immediate cash. That discount becomes your estimated yield.
How secure are the payments?
Each transfer is court-ordered and the payments are funded by a top-rated carrier, and our placed inventory has historically had no carrier defaults. Payments still rely on the carrier's claims-paying ability, are not FDIC-insured, and are not securities. These are long-term holdings with limited liquidity; resale or reassignment may be possible with our assistance but is not guaranteed.

Pacific Structured Assets, Inc. does not provide tax, legal, financial or accounting advice. The material on this website has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial or accounting advisors before engaging in any transaction, including the acquisition of factored structured settlement payments. Pacific Structured Assets is not registered with the Securities and Exchange Commission and is not licensed to sell insurance in any state.

Pacific Structured Assets

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