Sell annuity payments

Published on July 5th, 2016 | by Day Trader

Important Information Everyone Should Know About Selling an Annuity Settlement

Structured settlements

In today’s world many people feel that justice is rarely if ever served and it’s easy to see why people feel this way. After all, there are a variety of cases which show just that; a gross imbalance in the justice system. However for every case where justice wasn’t served, there is one if not more examples of cases in which justice was served. Great examples of this include personal injury cases, in which one person was injured due to another person’s negligence, recklessness, or simply their carelessness. Drunk driving accidents are prime examples of personal injury cases and lawsuits. The financial compensation in the form of a settlement awarded to victims of personal injury may not make up for the devastating loss of an injury (paralysis is a prime example of this), but it does go a long way in terms of recovering from financial losses.

A secure financial future can be had with an annuity settlement thanks to the steady income they provide, but there are still times when a person who has an annuity may want to sell structured settlement payments in favor of a lump sum of cash. Examples of circumstances in which a person may want to sell structured settlement annuity include wanting to buy a new home, the start of a new business venture, or to cover the expense of a certain financial emergency. Or maybe you’ve realized that you can get more back for your buck (literally) by getting a lump sum of cash for your structured settlement payments.

Either way, it’s important to find the best buyer for selling an annuity settlement. It’s also important to figure out exactly what kind of deal you want to make and what terms are best for your specific needs. If time is on your side, it pays to get various offers as opposed to simply going with the first buyer that comes your way.

Here are a few other things to keep in mind when selling an annuity settlement

Is your annuity transferable?

Simply put, if your annuity is not transferable, than selling an annuity settlement just won’t be an option. This means that you will not be able to sell it under any circumstances whatsoever! Be sure to carefully review your contract in order to determine if it is in fact transferable. If not and you still need cash immediately or in the near future, you can list your annuity and structured settlement as an asset or a form of income when applying for a bank loan.

Don’t even attempt to try and sell your annuity on your own

There a lot of great do it yourself hacks out there, but they don’t ever apply to selling an annuity. Always hire and work with a trusted broker, accountant, or attorney. This is especially true if you live in a state that does not have structured annuity protection laws of any kind. If you’re unclear about the worth of your annuity, don’t hesitate to work with a legal or financial professional that can help.

Remember, you won’t get all of it

Sure, it’s your money and you want and need it now, but it’s important to remember you won’t get all of your money after selling an annuity settlement. The amount you receive will be lower than the total sum of the payments due to an adjustment in the form of a discount rate. Generally speaking, this means that you’ll receive about 8 to 14% less than if you continued getting payments.


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