Guaranty Association Benefits Company (GABC) began making reduced benefits payments on November 18, 2013. GABC, a not-for-profit insurance company created as a result of the Executive Life Insurance Company of New York (ELNY) liquidation, became responsible for making payments to payees and beneficiaries as of August 2013.
The payments and other information can be viewed in the Final Liquidation Date Schedule 1.15 on the company’s website using your contract number.
Some payees are eligible for enhanced payments through the ELNY Hardship Fund. Hardship Fund Representative should be contacting applicants in regards their application status. Questions about Hardship Fund awards should be addressed to the Hardship Fund: Toll-free information line at 888-809-2254 or www.elnyhardshipfund.com.
Other payees have been contacted by the owner of their ELNY contract and told that the owner intends to make up any reduction in benefits under the Restructuring Agreement. These payees should have been contacted sometime after the August 2013 liquidation. Any questions concerning these payments should be addressed to the owner.
GABC annuity payments can be transferred and such transfers are regulated by the applicable Structured Settlement Protection Act. If you are interested in obtaining a free no obligation quote give CBC Settlement Funding a call today at 877-386-3377. We can explain all your options including only selling a portion of your payments.
Dear Annuity—It’s you, not me. I bought you at a moment of weakness. I thought you were the “one”—my only answer to my retirement plans. I feel so betrayed. I didn’t know what I was getting into—all the expenses and inflexibility. If only I read the fine print…
Does this sound like you? Everyday we hear from customers who are locked into expensive, low yielding single premium annuities that want out. They tried calling their insurance companies only to realize that it will cost them a ton with the surrender charges and penalties. They could roll it over to another annuity with lesser fees but they still have to deal with the inflexibility. Plus, with today’s less than stellar interest rates, they’re locking into a lower interest rate. Not exactly the ideal investment is it?
Luckily for you there are other options. You can sell your future annuity payments on the secondary market for a lump sum payment. You can use the money to make better investments, start a healthcare nest egg, pay off high interest debt and make some much needed home repairs.
While selling your future payments isn’t the right choice for everyone, it’s good to know you have options if they need should arise. Are you considering breaking up with your annuity? Call CBC Settlement Funding now at 877-386-3377 to find out how much your annuity is worth today.
As we previously mentioned, the divorce rates have been on a decline in recent years but that doesn’t mean that divorce doesn’t happen. In 2011, 877,000 people in the US ended their marriage by divorce or annulment.(1) Can you imagine how much was spent in attorneys fees considering the average divorce costs $15,000-$30,000.(3)
While some couples have divorce insurance to help pay for their expenses, if or when, they decide to divorce many others do not have this expensive coverage. It is not only expensive, you can’t use it until you’ve been married for more than 36 months. (2) So what are your choices?
For starters, you can save yourself some money by using mediation. The typical mediated divorce costs $7,500, if you play nicely.(3)
While some individuals have savings they can use or can borrow legal fees in exchange for a percentage of their divorce settlement this isn’t usually the case. If you have an illiquid assets such as annuities, structured settlements, life insurances policies, royalty payments, inheritance, cell tower leases as well as other periodic payments you can sell a portion of your future payments for a cash lump sum.
The rates are better than most credit cards, bank loans and divorce loan services. You don’t pay the money back and it has no affect on your credit. The money can be used to pay for your divorce or high interest debts as well as buy a new home. Use the money the way you want to without accumulating debt.
If you’re considering a divorce and you’re not sure how to pay for it, give CBC Settlement Funding a call today. We can evaluate your asset to determine if selling is the best option for your unique situation. Call 877-386-3377 now to get started.
Previously, we wrote about the role annuities can play in divorce settlements for the distribution of property as well as alimony payments and child support. Obviously there are many benefits for both parties in a divorce settlement. However, we did not mention existing annuities at divorce time. When and how you handle the distribution of these illiquid assets can be very costly.
Annuities can be complex and when there is marriage trouble most people don’t even think about them including attorneys or financial advisors. Unfortunately this can lead to serious financial consequences. Before you make any decisions about your divorce, you should consult your financial advisor to determine the best course of action.
Hopefully, your advisor is familiar with your annuity and the fees associated with the product. It is important to bring your paperwork with you. Some annuity products have riders, surrender charges and fees that need to be addressed. Also some annuity companies have different requirements regarding the distribution of annuities in case of divorce. Without the proper paperwork, the couple may end up paying a large amount in taxes.
Depending upon the type of annuity, it may make sense to look into selling the annuity on the secondary market to a company like CBC Settlement Funding. You may be pleasantly surprised of the value of your illiquid asset.
If you’re considering divorce it pays to get all the facts up front. If you would like a free market evaluation for your annuity, call CBC Settlement Funding. We can help you to determine if selling is your best option.
Divorce can be many things—messy, liberating, time-consuming and expensive. While the divorce rate has been on a decline in recent years, there seems to be no shortage of celebrity divorces. Celebrity couples seem to fight over the same things as typical Americans do such as money, property and custody; they’re just fighting over larger amounts. So whether you dissolve your marriage amicably or after a battle of epic proportions, it usually ends with some kind of settlement. (1,2)
When a settlement is reached the paying spouse may agree to pay a lump sum payment. However it is more common to see spousal and child support payments being paid in installments over time. While many people opt to make their payments themselves, there are often advantages to using a structured settlement annuity for both parties.
For the paying spouse, they could receive a discount in the cost of payments by using an annuity. They also end their financial obligation to the ex-spouse and do not have to worry about late payments or liens.
The receiving spouse has the peace of mind knowing they don’t have to chase after the money because the payments are guaranteed by the insurance company. So if their ex makes less money, becomes disabled or dies in the future, they don’t have to worry because their money is still coming in. I bet some ex’s of former sports stars wished they had annuities.
Also in some state’s the money is creditor proof which adds a nice layer of protection. However, alimony payments are not tax-free so you will need to work out who is responsible for the taxes ahead of time. (Child support and property distributions are tax-free.) Don’t just take our word for it, consult a tax specialist about your individual situation.
As great as having an annuity or other illiquid asset for your divorce settlement sounds, sometimes your financial situation changes and you need some of your money sooner. Perhaps you’re out of work and need some major home repairs or you’re behind on your bills and could use the money to pay off your debt. Depending on the terms of your divorce settlement, you may be able to sell some of your future payments for cash.
With a lump sum payment, you can negotiate a debt settlement, avoid foreclosure, get out of debt and take care of business. Some individuals use these payments to buy a home, start a business or pay for educational expenses. If you have a divorce settlement that is no longer working for you, call CBC Settlement Funding today. We can evaluate your asset to determine if selling is the best option for your unique situation. Call 877-386-3377 now to get started.