If you have been researching investment options and are looking for something relatively safe but that will yield you a high rate of return, you should be considering previously owned annuities.

Many people own the rights to annuities, some of which have terms of up to 50 years that guarantee monthly income.  Some of these owners are willing to sell the legal right to their structured monthly payments, at a discount, for a lump sum payment.

A majority of the time, the seller is someone who was injured in an accident and receives an annuity settlement from an insurance company.  If that person would rather receive one lump sum instead of a stream of income, he must be willing to give a discount to a buyer for the annuity in exchange.

Before the annuity is sold, its present value is determined.  In order for a reasonable offer to be structured there are a few things that need to be considered, such as the balance of the future payments, the established interest rate associated with the annuity and the number of payments remaining.

Each of the original annuity terms, the interest rate, the scheduled payment date and the payment amount remains fixed for the duration of the annuity.

One of the major advantages of purchasing a pre owned annuity is that the discount can be significant.  These annuities are paid by major insurance companies and other organizations with excellent credit ratings.

Pre-owned annuities are an attractive option for anyone looking to invest for long or intermediate terms.  They are low risk investments with a high rate of return.