ANNUITY INVESTOR: QUESTIONS AND ANSWERS

Structured settlements as an investment.Annuity Transfers creates stable, virtually guaranteed, income-driven investment opportunities for investors of all types. Individuals wishing to invest in insurance company annuities, created through personal injury litigation, may do so through Annuity Transfers. These investments currently provide annual returns of 4% to 7% or more, depending on the specific payment stream and the maturity date.

1. What are structured settlement payment streams?

Payment streams, derived from personal injury litigation, paid as annuities by A-rated insurance companies. Settlement payment recipients exchange their rights to future payments for the discounted present value of the payment stream in order to invest in a business, eliminate debt, purchase homes, cover education expenses, etc. Annuity Transfers purchases these payment streams at a discount and offers them to interested investors.

2. Are these payment streams legally assigned to individuals after purchase by Annuity Transfers?

Yes. Annuity Transfers purchases the payment rights pursuant to state and federal law which regulates the industry. Courts approve the purchase and sale of the payment stream, finding the transaction to be in the best interest of the seller (former payment recipient). Insurance companies are ordered (via a formal court order) to redirect payments to the legal payee, and the purchaser may then redirect them further still. Investors take possession of the payment stream through a legal assignment from Annuity Transfers and the payments are redirected electronically to the investor.

3. Why did the government ultimately regulate and create this market?

Individuals awarded future payments through litigation derived from personal injury misfortune have sold the right to receive these payments for years. The industry that grew up around this consumer need operated without regulation until January 2002 when the U.S. Congress stepped in and legitimized the process, demanding that the practice be approved by a judge following scrutiny of the transaction. These transactions are approved only in cases where a judge, following a formal hearing, deems the transfer of payment rights to be in the best interest of the seller. The federal law required that individual states pass laws regulating the sale of structured settlement payment streams. We are happy to introduce you to the specific state laws that were passed as a result of the federal legislation. These laws now govern and regulate the business. Remember that the court approval of the redirection of payments occurs before the investor is involved in purchasing payment streams. The initial payee has legally transferred his/her rights to the payments to Annuity Transfers, so the investor deals only with Annuity Transfers, as if he/she was purchasing a savings bond.

4. Why invest in structured settlement payment streams?

Investors today may look to the very risky, moderate returns available in the stock market, take what their bank will offer on deposits and money market accounts, or opt for other fixed income investments (government, corporate, or municipal bonds). None of these investments provide any real gain given the erosion of buying power that results from inflation. Payment streams purchased through Annuity Transfers offer the certainty of payment that is normally not present in investment opportunities that “lock in returns”. The investment price is based on the present value of the future cash flow, so today’s investment is matched against tomorrow’s payment stream and fixed. The investor will receive back the exact amount scheduled for payment, according to the contract executed with Annuity Transfers, and the court order redirecting the payments from the insurance company’s original payee. Payments are virtually guaranteed based on the extremely low-level of risk.

5. What do you mean by “virtually guaranteed”?

Once a structured settlement payment stream is redirected via court order to Annuity Transfers, the only risk of not receiving payments is associated with the payment making ability of the insurance company. We only purchase payment streams issued through A-rated or better insurance companies (S&P ratings). This type of credit certainty is rarely available in long-term investments that provide ongoing income.

6. How do I invest in structured settlement payment streams?

Give us a call. We are ready to discuss this exciting investment opportunity. Our representatives will walk you through the financial and legal aspects of the business, making absolutely sure that you, the investor, understand why this opportunity exists and how Annuity Transfers can make it a reality.