by John Darer CLU ChFC MSSC RSP CLTC
An indexed annuity is NOT a structured annuity contrary to words of Linda Koco, a contributing editor to Insurance News Net. A structured annuity is a term signifying an annuity that is used as a qualified funding asset [defined at IRC 130(d)*] or otherwise used to fund a future periodic payment liability to resolve litigation.
The only structured variable annuity was a registered product, MetLife Settlement Plus, offered by MetLife between 2000-2012 through specialist NASD/FINRA registered and appointed firms consultants. It is now off the shelf. One major carrier however is shortly to introduce a structured indexed annuity for structured attorney fees.
It's a pity that Annuity News' Linda Koco, an MBA , has not taken the time to adequately research the structured annuity market before publishing on September 25, 2013 "Structured variable annuities — also known as indexed variable annuities, registered indexed annuities or just structured annuities — have begun showing up on annuity dance cards, but industry practitioners aren’t quite sure what they are. Or why they are.."
Believe me, I know and the other 700 or structured settlement "industry practioners" in America know what structured annuities are.
Qualified funding asset
(1) such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment,
(3) such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and