InForce™ Payments

Secondary market payments are one of the best-kept secrets you can offer your clients. Here’s a short course on some of the features that make them an attractive alternative for savings and retirement planning.

For more than 30 years, advisors and agents have looked to me for safe-money opportunities for their clients. From my vantage point in life brokerage, I have seen annuity and life insurance products evolve as economic trends, both national and global, affect consumers’ finances.

One of the most exciting developments has taken place in the last five years, and this is the introduction of secondary market income payments to the retail marketplace.

Secondary market payments had previously been sold to hedge funds and securitized on Wall Street, but they were not available to the retail market in any organized way. As a product with guaranteed rates of 4-7 percent to the purchaser, we saw an opportunity for a specialized alternative for savings and income planning for the financial advisor.

Secondary market payments are a stream of income purchased at a discount from the original recipient of a structured settlement. Structured settlements are created when the plaintiff in a lawsuit or lottery winner agrees to a financial award, ordered by court of law, which establishes one or more annuities to provide payments, monthly or lump sum, on an agreed-upon timetable.