Where Do DCF Income Payments Come From?

DCF Income Payments are existing, period-certain payment streams or lump sums sold by the original annuitant at a discount. It is this sale at a discount that creates a higher yield for the buyer.

The vast majority of DCF Income Payments were originally part of a structured settlement in a personal injury lawsuit. In a structured settlement, an annuity is purchased from a top-tier insurance company to fund the payments due to the plaintiff in compensation for settling the case.

These payments are also sometimes called ‘secondary market annuities’ simply because the existing, in force fixed payments made by the insurance company are transferred to a new payee in a ‘secondary market’ transaction.  It’s important to note however that the underlying annuity does not change hands in these transactions.

You can learn more about structured settlement annuities, which are the assets that underpin the payments we make available as DCF Income Payments, on this website.

dcf income payments explained

DCF Income Payments Benefits

The most important thing to bear in mind with your clients is that DCF Income Payments, also known in the market as secondary market annuities, offer the benefits of a period-certain fixed income stream backed by a top-tier insurance carrier.

But as the seller is taking a discount, the end buyer’s yield is typically one to four percent higher than comparable newly issued annuities.

Up Next

In the next post, we’ll give some more details about the legislated and court-ordered transfer process DCF Exchange utilizes to ensure that these payments are transferred to your clients smoothly, efficiently and irrevocably.

What our customers say about DCF Exchange

“Fast, easy process for sale of SMA’s”

Fast, easy process for sale of SMA’s. ACH and wire of money, and the GoldStar relationship make this a very easy process. The DocuSign system used makes it easy to work with clients since there is no in person meeting required. Although we do like to meet in person with clients… will use DCF Exchange for all SMA sales!!!!! A ++++++++

“I have worked with Nathaniel at DCF for…”

I have worked with Nathaniel at DCF for years. Everything is always professional and seamless. A pleasure to work with.

“This is the second transaction I did…”

This is the second transaction I did with Nathaniel Pulsifer at DCF and both went very smoothly. Clients are very happy. I try to incorporate these types of secondary annuities when appropriate. I would highly recommend Nathaniel Pulsifer and DCF to anyone who wants to incorporate these in a clients financial plan.

“These guys are the absolute best”

These guys are the absolute best! I’ve been working with Nathaniel and Ross for many years now, and there’s nobody better in the business. Their knowledge of the industry is unsurpassed, and most importantly they are HONEST and TRUSTWORTHY. I look forward to working with DCF Exchange for many years to come.

“I had an amazing experience with DCF

I had an amazing experience with DCF! Nathaniel and his team are extremely dialed into these specialty products and I definitely would work with him again! Thanks!

“Extremely knowledgable and ethical”

Extremely knowledgeable and ethical. A pleasure to do business with.

“How fast was that”

How fast was that? VERY!
I was most pleasantly surprised how quick and efficient my payment was processed. Very safe, efficient and accurate.

“Thank you for putting your platform…”

Thank you for putting your platform together. Very nice work, easy for everyone to complete transactions. Almost as easy as writing annuities was 20 years ago –you probably weren’t around when the entire annuity application was 1 sheet of paper, front and back. You could send in that one piece of paper with a check and the deal was done!

“DCF performed far above and beyond my……”

DCF performed far above and beyond my expectations from beginning through the end closing process and beyond. When there seemed to be an issue with the trustee, DCF stepped in and cleared up all misunderstandings and insured everything was correct. I should note that the misunderstandings were really on my part and, once I was finally clear, I now fully understand and agree. Thank you DCF.