by John Darer® CLU ChFC MSSC CeFT ® RSP CLTC
If you have an Allstate structured settlement annuity and have liquidity needs that cannot be met from any other source, make your first call to Allstate's Advanced Funding Exchange Notice (AFEN) unit.
The Advanced Funding Exchange Notice (AFEN) is a liquidity option riderthat may benefit Allstate structured settlement annuitants in a time of need, who are willing to comply with IRC 5891 and obtain a qualified order. With sources of funding drying up for many factoring companies , Allstate's fixed discount rate may NOW be more competitive than the discount rate offered by factoring companies and cash now pushers. Download sample AFEN_rider
I received a call from a reader from Virginia, who was offered $36,000 for 180 monthly payments of $750 per month, starting 3/2/2009. This equates to an effective discount rate of almost 25%, from Seneca One. Lucky for him he happened to call. Once I learned he had an Allstate structured annuity I explained to him about the Advance Funding Exchange Notice and suggested that he contact Allstate. He was both thankful for the information and puzzled as to why he hadn't heard about AFEN from anyone else. Does Seneca One have an obligation to tell him that he had the AFEN opportunity at possibly half the cost? Apparently not.
Ironically, as we previously reported, many structured settlement industry brethren have, in the past, repeatedly lambasted Allstate for notifying its annuitants about the Advanced Funding Exchange Notice that comes with every Allstate structured settlement contract. Some of the ill opined advisers even wanted Allstate thrown out of NSSTA. You all know who you are. A brief primer...
Important Update on the Allstate Advanced Funding Exchange Notice (AFEN) 2/22/2008
What do my industry brethren say now?
What responsibility do settlement planners and settlement consultants have to inform Allstate structured settlement annuitants of the Advanced Funding Exchange Notice now that they have successfully bullied Allstate into stop sending the notices? Consider that in the instant case the Allstate annuitant was so close to being a victim of opportunistic capitalism from the Seneca One factoring company.