by John Darer® CLU ChFC MSSC RSP CLTC
Remember when you were a child and your Daddy was an available source of emergency cash? Have you forgotten already?
Well, if you have a structured settlement, are down on your luck and lack alternative resources in an emergency, don't forget your "Annuity Daddy" or "Annuity Mama". Instead of sitting slack-jawed watching goofy "unemployment TV" or YouTube offerings from the usual crew, start by getting the best offer you can from loving "the one you're with".
Daddy loves you! "Papi" Allstate advertises an 8% discount rate with its Advanced Funding Exchange Notice (AFEN). The Structured Settlement Watchdog has just learned that another annuity issuer will consider buying back from its own annuitants in need at a rate of 7%. Note that lawyers fees must go on top and this will result in a higher effective discount rate. And your Annuity Daddy is not a soft touch either. You still have to get Court approval just as you would with anyone else. Notwithstanding that, Allstate will not allow you to tap in for the first two years.
Yet, by going to your " Annuity Daddy" or "Annuity Mama" first you set a benchmark that others must be under to win your business.