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We work with structured settlement buyout companies to help their clients obtain life insurance coverage to secure their lump sum payouts. 

If you're having trouble finding life insurance for your clients OR you're trying to secure a lump sum payout on your annuity payments, please contact us.

We're most likely able to help as long as you're an insurable risk.  Which means as long as you're fairly healthy or don't have any major lifestyle issues (criminal, hazardous activities etc). If you are looking for life insurance for high risk people; we can help!

Why is it so Hard To Find Life Insurance for Annuity Buyouts?


The problem most structured settlement buyout companies have is actually finding a life insurance carrier that will write the business.  99% of life insurance companies will reject a new life insurance application if they know it's to guarantee the payments of a structured settlement buyout.  This is because of insurable interest.

Wikipedia explains insurable interest best:

Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence of the insured object (or in the context of living persons, their continued survival). A person has an insurable interest in something when loss-of or damage-to that thing would cause the person to suffer a financial loss or other kind of loss.

With structured settlement buyouts, you're collaterally assigning the life insurance policy to an investor...and often times changing ownership of the policy to the investor too.  Most life insurance companies will say there's not enough insurable interest and won't take these cases.

It can be argued that there is insurable interest, but that's a whole other article and we'd be getting off topic. So...

What Life Insurance Companies Take Structured Settlement Buyouts?

We're an independent life insurance agency and survey the entire market on a regular basis for the agencies that refer us their clients who need life insurance in order to get their lump sum payout.
 
The life insurance companies that take these annuity buyouts (structured settlements) changes all the time.  

And I would be foolish to list the companies that will take this business as it would compromise my competitive advantage over other brokers.  Just know that usually it's 1-3 companies on the market that will take them (out of 100s of life insurance companies).

We've found that most life insurance agencies will tell you they don't have any companies that will take these types of cases.  They just haven't done the leg work to call the life insurance companies and ask OR they just don't have the network of carriers we do.

BEWARE:  Some of the more shady life insurance agents may tell you to not disclose that this life insurance policy is for a structured settlement.  I can tell you that even if you get a policy in force, when you do the collateral assignment or change the owner to the investor, there's a very high possibility your policy will be rescinded.  Or in other words the life insurance policy will be cancelled by the carrier.

You need to disclose that the life insurance policy being applied for is for an annuity buyout and we do that with every case that gets sent our way.

We work with clients looking to purchase life insurance coverage in order to secure their annuity buyout  daily.   Rest assured that we know what we're doing.

You don't have to spend time telling us the process or wait for someone to "find out" if they can help you.  You tell us what you need done and we'll show you your options.
 

About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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2 Comments

Do you still work with factoring companies?

October 7, 2015 at 12:35 pm
    Jeff Root

    Hi James – We do. Give me a call to discuss.

    November 16, 2015 at 12:12 pm
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