Cash For Annuity-Is it Legal and How Does it Affect the Insurance Companies?

The answer is yes. It is definitely legal. Not only is it completely legal, but corporate America as well as many wealthy individuals have been buying and selling contracts and income streams in order to improve their cash flow, and meet their financial obligations for years. For a long time this information was a well-kept secret from the general public. The truth is that there are funding sources across the United States who are buying these types of annuities regularly.

Insurance companies do not want you to know that you can get cash for annuities because they lose out. For instance, consider what happens when an insurance company offers you a structured settlement, paying what appears to be a large sum of money, say $100,000 over a ten-year period. They don't actually pay the $100,000, but rather they pay out as little as they possibly can by buying an annuity for a much lesser amount. The annuity then earns sufficient interest to actually make your payments over the term, say 20 years. They don't want you to know that they actually only paid a fraction of what appeared to be paid.