Find Out Whether Selling Your Annuity is a Good Investment Deal


What is an Annuity and How Can You Get the Best Out Of It

An annuity is an insurance product that usually pays out an income and can be used as a retirement strategy as well. Annuities are a trendy choice for investors who are willing to receive fixed income flow in their retirement.

There are two basic types of annuities which are,

  • Deferred annuity
  • Immediate annuity

With a deferred annuity, this is where your cash is invested for a particular period pending the beginning of your savings withdrawal, normally in retirement. With an immediate annuity, you begin receiving payments shortly after making your first payment. Usually, the immediate annuity pays out whereas the deferred annuity accumulates cash.

There are also fixed and variable annuities within the above two categories depending on whether the payout is a fixed amount, a joint to the performance of the general investments group or else a combination of the two. 

Fascinating Annuity Sale Options That Can Help You

It is essential to know that you can sell your recurring payments. Therefore, if you are into the idea of having a recurring payment stream you will need a lump sum. Below is how you can easily sell your annuity payments for them to work for you:

Partial sale is when you consider selling only a portion of your annuity payments because you will go on receiving payments either in one or two ways. You can also prefer to sell a period of your payments whereby you will receive no payments for that particular period, although your recurring payments will resume the moment that period is up.

Entire sale involves selling annuity payments through a full term of your contract and will result in payment of your investment at once which will lead to the termination of recurrently scheduled payments. You will also be left with a lump sum of money to use.

How To Go About Selling Your Annuity and Why It Matters

If you need cash right away, you don’t have to wait for your annuity payments. All you need is contacting a company like Settle4cash that will give you a no-obligation quote and help you to answer questions about selling either some or all you annuity. Your will have your cash within two weeks after authorizing the sale; however, this will depend on the insurance organization that issued your annuity.

Selling annuity payments begins by talking with an experienced representative. The chat can either be online or a call, and you will have someone to explain the entire process for you. The representative will ask questions about your annuity as well as your financial position so that he or she can figure out the best way to help you in achieving your goals. When the representative has understood your annuity payments and goals as well, he or she will create some alternatives for you. These may include the sale of all your payments for a particular period or just sell a portion of each payment and still receive a regular payment.

After you have decided how you would like to sell your future annuity payments, the representative will get your paperwork and send it to the insurance company who is in charge of your account. You will also be required to give a copy of your signed annuity agreement and a contract which gives the permission to your representative to complete the sale. All these documents are sent to your insurance company who will then process the changes.

Once the approval is made, and all necessary documentations are in place from the company that issues the annuity, your representative will deposit the money directly into your account either through a check or electronically.

Do You Need To Sell Your Annuity? Below are some common reasons

There are several reasons why people opt selling their annuities, but here are common reasons why you might sell your future payments:

  • the necessity of making a change to your investment planning strategy
  • the need of investing in stock market, real estate or retirement funds
  • the wish of using a lump sum in paying a debt acquired from loans, credit cards or medical bills
  • the desire to start or invest in your own business
  • in case you realize your intention for buying an annuity is no longer relevant or has no value
  • in case you need capital to fund some legal expenses
  • in case you inherit an annuity, and you opt to receive a lump sum instead of monthly payments
  • if you have an unexpected life change which currently needs additional cash rather than future payments