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Structured Settlement – Primary Market

You own a structured settlement.  You’d like to sell.  Let’s talk first about who or what has already made money off of you.  Why?

Because it will give you leverage.  The kind of leverage I’m talking about is confidence.  When the court decided in your favor and you won a personal injury case, the person or entity that was found guilty was ordered to buy an annuity in your name.  Where does a private or public person or entity buy an annuity?  From the annuity shop down the street?  Kind of.

 

Insurance companies are a popular source to buy an annuity.  Now we are about to enter what is called the primary market.

To help me explain to you the definition of “primary market”, I have turned to Wikipedia for an accurate definition:  “The primary market is that part of the capital markets that deals with the issue of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. …”

(en.wikipedia.org/wiki/Primary_market)

The part of this definition that I want you to pay attention to is, “Companies, governments, or public sector institutions can obtain funding through the sale of new stock or bond issue.”  In other words, the insurance company that sold the annuity to the  individual or entity that hurt you is actually making money off of the sale of the annuity that you own.  Your personal injury has helped an insurance company stay afloat.  Feel better?  Probably not, but now, you own something that can make another company money.  So, you have the upper hand.  If you re-sell your annuity,  you are not pushing your product on a company.  They are not doing you any favors.  As a matter of fact, they NEED you.  They need that money to survive as a company.

 

So now that you have confidence, how in the world does a “layman” go about battling in the world of finance?  You don’t.  You’ve got other worries.  Let a lawyer who specializes in the primary and secondary marketLawyers such as Eugene Ahtirski know you have the upper hand.

You could loose a lot of money in the re-sale of your structured settlement if you are not careful.

 

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