by John Darer® CLU ChFC CSSC RSP CLTC
Structured settlement annuities and indexed annuity placements increased in the 1st quarter of 2015, while other annuity segments declined, according to a report released by Life Insurance Marketing and Research Association (LIMRA) on May 19, 2015.
Despite the first quarter decline in other segments, the US annuity market still produced $54.4 billion, according to LIMRA, whose U.S. Individual Annuities Sales Survey represents data from 96% of the market. [Note that structured settlement annuity sales as referred to by LIMRA, do not refer to the business of settlement purchasers (cash now pushers) like JG Wentworth.
Indexed annuities experienced their 8th consecutive quarter of increased sales. Many settlement planners are incorporating indexed annuities into financial solutions for their clients.
Structured settlement annuities have shown growth, despite low interest rates, for the past two years, according to data compiled my industry colleague Melissa Evola Price.
Structured settlements offer a stable and secure core income to injury victims, wrongful death survivors and their families and structured settlement payees, with benefits all across the economic spectrum.
Structured settlements offer predictability where cash may not. Nobody can know exactly when the sands of time will run out. Whether or not you take cash up front with your settlement, or you succumb to a cash sales pitch, or you have some other Sudden Money event you have to make that money last.
Although not covered by the LIMRA survey, the demand for structured settlement payment rights in the structured settlement secondary market by investors, is indicative of the confidence that investors have in the product.
Structured settlements have received strong bipartisan support in Washington in both the House and Senate for over 30 years.