For annuity shoppers

Higher-yield annuities, and where the yield actually comes from

A newly issued fixed annuity cannot pay much more than the insurer earns on bonds, minus their spread. Materially higher yields come from a different door: buying an existing structured settlement payment schedule at a discount on the secondary market. Same carriers, same scheduled checks, 4 to 7 percent estimated yields.

See current yields Current rates by category

The ceiling

Why new annuities cap out

If you have been shopping annuity rates, you have seen the pattern. Every carrier quotes within a narrow band, and the only ways to push the number up are longer surrender periods or products complicated enough that the real return is hard to see. That band is not a marketing choice. The insurer invests your premium mostly in bonds, keeps a spread for reserves and profit, and credits you the remainder. The ceiling is structural.

The secondary market works from a different arithmetic. Someone who receives court-ordered settlement payments sells them for a lump sum, at a discount. A court approves the transfer, and the investor who buys the schedule earns that discount as yield. The carrier writing the checks is unchanged. What changed is the entry price, and that is why the same insurer's payments can yield an estimated 8.50% here while their new products cannot. We explain exactly what you own, and what you do not, in our guide to fixed annuity rates by term and in our page on whether a secondary market annuity is actually an annuity.

Side by side

The three doors a yield shopper can open

Swipe sideways for the full table →

	New MYGA	New SPIA	Secondary market
Where the yield comes from	Insurer's bond portfolio, minus their spread	Insurer's pricing of your life expectancy	Discount to face value on an existing schedule
Typical yield character	Tracks prevailing rates; capped by the spread	Payout rate, not a yield; principal is consumed	4–7% estimated annual on current inventory
What you own	An insurance annuity contract	An insurance annuity contract	Court-assigned payment rights (not an annuity)
Guaranty association coverage	Yes, within state limits	Yes, within state limits	Generally none for payment rights
Liquidity	Surrender charges during the term	Generally irrevocable	Limited; resale possible, not guaranteed

MYGA and SPIA terms vary by carrier and state. Compare live quotes from your agent against the listing-level yields on our inventory, and read our full comparison against CDs, Treasuries, and new annuities before deciding.

Highest current yields

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GK005440WA LotteryLottery Life-ContingentFeb 2029 – Feb 20358.50%SC004867State of New HampshireGuaranteedMar 2027 – Mar 20347.50%HE016975American GeneralGuaranteedAug 2026 – May 20556.55%

Higher-yield annuity questions, answered straight

Can an annuity really pay 6 or 7 percent?

A newly issued fixed annuity generally cannot, because the insurer earns bond-market returns and keeps a spread before crediting your rate. Quoted rates near 7 percent on new products are usually income-rider percentages or teaser rates, not real yields. Effective yields in the 6 to 7 percent range come from the secondary market, where investors buy existing payment schedules at a discount to their face value.

Are higher-yield secondary market annuities safe?

The payments come from the same A-rated carriers that back new annuities, such as Berkshire Hathaway and New York Life, and every transfer is completed by court order. The trade is different, not hidden. You give up liquidity and state guaranty-association coverage in exchange for the higher yield, and life-contingent streams carry mortality risk. We put that in writing on every listing.

What is the catch with the higher yield?

Two things, stated plainly. These are long-term holdings with limited liquidity, best suited to capital you can commit for the long term. There is no daily market, though resale or reassignment may be possible with our assistance at a price that is not guaranteed. The payment rights are also not insurance products, so guaranty associations generally do not stand behind them the way they would behind your own annuity contract. Investors who need flexibility should hold CDs or Treasuries instead. Investors who can commit the money collect the spread.

How do I see what is available right now?

Every current listing is public on our inventory page with its yield, price, carrier, and payment schedule. Registration is free and shows full payment schedules and available pricing. If you would rather talk it through first, talk with our team at (800) 449-6311 and we will walk you through what is currently available.

What these assets are, and what they are not

Guaranteed and life-contingent structured settlement payment rights, and lottery payment rights, represent the right to receive factored payments that Pacific Structured Assets purchases and assigns to investors through a court-approved process. They are purchased at a discount to their total scheduled payments.

These payment rights are NOT annuities, NOT insurance products, and NOT securities registered with the U.S. Securities and Exchange Commission. They are not bank deposits, are not FDIC-insured, and are not protected by any state insurance guaranty association. The industry term “secondary market annuity” refers to these payment rights and does not mean you are purchasing an insurance annuity contract.

You acquire the right to receive the payments, not the underlying annuity. The annuity itself does not change hands. Unlike the original structured settlement annuity, which may be shielded from creditors under applicable law, the assigned payment rights you purchase generally do not carry that creditor or bankruptcy protection.

Assigned annuities, offered as a separate product line, are existing insurance annuity contracts reassigned to a new owner through a change of ownership or an irrevocable change of payee.

These are long-term holdings with limited liquidity, and may not be suitable for every investor. There is no public trading market and no daily price. Resale or reassignment of a payment stream to another buyer may be possible, and Pacific Structured Assets can assist, but a resale is not guaranteed and the price it would bring is not guaranteed. Because the payments are fixed, that resale value moves with prevailing interest rates: an investor could realize a gain if rates have fallen since purchase, or a loss if rates have risen. These holdings are best suited to capital an investor can commit for the long term. Nothing on this website is tax, legal, financial, or investment advice. Consult your own advisors before investing.

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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