Should You Sell Your AIG Structured Settlement Annuity Payments?

The confidence of AIG's structured settlement annuity policy holders has been shaken, but should these policy holders sell the rights to their annuity payments?

Due to the circumstances surrounding the recent events of AIG's financial difficulties the media has spawned a frenzy among policy holders. This author believes annuitants should be cautious about selling the rights to their annuity payments. Here is why:

What Happens If Your Annuity Policy Includes Anti-Assignment Language?

Many annuity policies and settlement agreements usually include anti-assignment or anti-sale language. Even though this language is included within your settlement documents, you are still able to sell your future structured settlement payments!

Here is an example of the language that may be contained inside your annuity policy or settlement agreement:

Examination of a Structured Settlement Factoring Case

John Darer of Structured Settlements 4 Real published a disturbing article yesterday afternoon about an individual interested in selling the rights to a structured settlement with the following details:

• Annuity set up in 1983
• The caller stated that this money would be used for investment purposes, but would not go into detail.
• The annuitant is disabled and suffers from the incident 25 years ago.
• Annuitant is a resident of California
• Caller was not the annuitant or financial consultant