We have seen advertisements running rampant online with numerous banners and click bait purporting to be the number 1 buyer of structure settlement payments, annuities, and lottery winnings. The truth is there is no one person or company that buys the majority of annuities, structured settlement payments, and lottery winnings. It is a very diverse field of investors, insurance companies, banks, and investment houses that purchase these type of reliable periodic payment streams. The companies that you see advertised on television commercials are typically structure settlement brokers and not the end buyers or recipients of these investments. Companies such as Peachtree Settlement and JG Wentworth out of Radnor, Pennsylvania are rather brokers and help originate deals to facilitate purchases of the payment streams and then pass them off to an investment house or to investors who take over the payments individually. There is no single person such as a Warren Buffet of Berkshire Hathaway who buys all of these payment streams.
The number 1 buyer of structured settlement annuity and lottery payments
Annuities are so broad and wide ranging from single premium investment annuities to life insurance annuities. The total value of the lottery market, annuity market, and secondary market for structure settlement payments would be far too large for almost any individual or company to be the sole purchaser of and no single company is the number 1 buyer of all of these payments. Within each of these investments there are a multitude of variations as well. For example there are guaranteed payments that mean you receive your pay out no matter what where as life contingent payments are paid out only if the recipient is living. To complicate things more there are cost of living increases in some payment streams and others are stagnant. There are so many variables at work that it would be a herculean task to keep up with all of the investment options and be the number 1 purchaser of these payment rights.
So if you see an advertisement saying they’re the number 1 buyer know that it’s simply not true nor is it feasible.