Generally, people are rewarded with annuities as a result of a winning a state lottery or lawsuit. Instead of a lump sum onetime payment, they got a series of payments on a regular basis. At times these people cannot afford to wait years for their full payouts. They can opt to sell their future payments to a private investor or buyer in exchange for a large amount of cash now. The re-sale of such annuities are known as secondary market annuities.

You can buy a secondary market annuity from the original owner with a markdown and get the stream of lump sum payments or income given to you. These plans will generally provide a price of return on top of immediate annuities, standard fixed annuities, bonds or CDs of an identical credit quality. This raised yield is made through the original owner selling such payments with discount, not the insurance firm paying the larger specified charges.

The insurance company is required to provide these payments regardless if it’s the new owner or the original owner. The yield improvement is made purely through the factoring procedure mechanics and the current owner’s willingness to sell their payment series at a discount, particularly if these income series were originally issued at existing market rates.

On the other hand, fixed term annuities such as, indexed annuities, fixed annuities and secondary market annuities offer a long term benefits. They also have a fixed appreciation rate. Payouts from any of these items can either be income or lump sum. You can look for a fixed term lump sum annuity payments or fixed appreciation for a certain period of time. Consider that indexed annuities and fixed annuities also offer such period of time and they also offer additional benefits of some surrender and liquidity value that SMA’s do not have.

Know more about secondary market annuity from website.