Annuities are insurance inventions that provide long-term income through a stream of future payments either through beneficiary or retirement means. In case unexpected situations emerge, and you need money, selling annuity payments may be a consideration because they have a high value.
Types of annuities
- Deferred annuity: Deferred annuities usually have an accumulation stage, whereby interest accrues over time. In this type of annuity, your lump sum or payment is deferred until a later period when the annuitant accepts to receive them.
- Immediate Annuity: In the immediate annuity, payment usually begins after a period of 12 months. This type of contact is widely endorsed by people who are closer to retirement. It also guarantees the annuitant an instant income.
- Other types of annuities
Lottery Annuity: It is a structured settlement that disburses payment to the owner over a period of years instead of funding the beneficiary a lump sum of cash.
Pensions: They pay the retiree a fixed amount of money based on time and salary of service with the employer before the time of retirement.
- Fixed annuities: In fixed annuity, the money you receive depending on the period scheduled is fixed and will not change.
- Variable annuities: In variable annuity, your returns are joint, and it depends on how your issuer invests with your money.
Selling Option: Selecting The Payout On Your Annuity
Selling annuity payments depends on two main options which are the partial annuity sale and the entire annuity sale.
Partial annuity sale; in partial annuity sale, you are entitled to a continued periodic income without losing tax benefits if only you sell a segment of your payments. Whereas in Entirety annuity sale, it means that you have decided to sell the total structured settlement for the entire period of the contract. In short you will have emptied all your savings without further ado; however, you will still have a lump sum left to invest.
What You Should Know About Selling Annuity Payments
The process of selling your annuity payments early on is very simple and is outlined below. In case you need cash today, you can get easily get an advance by selling annuity payments that you have. Below are ways to consider when selling annuity payments
- Get a free quote: A quick email or phone call conversation is sufficient to give you a free no-obligation quote that will some time to evaluate
- Collect and submit your paperwork: After getting a quote, you will be required to get all the paperwork which are linked with your annuity payments before contacting anyone about selling your payments. In case you don’t have the paperwork, consider getting help from an expert representative who will help you to get your information from the structured settlements annuity database.
- Get connected: You are required to do your research cautiously on the representative to hire when representing you in finding the correct buyer for your annuity. Once you have the right representative and they have given you an offer, evaluate it slowly and if you are clear with the whole information, sign it as prove off acceptance and return it to the representative.
- Go before a judge: An annuity is usually a planned settlement, and according to the law, a judge is supposed to endorse the sale to guarantee it is in your best interest and also that you are not to utilize the cash because it will not help you or your family.
- Collect your money: Once the judge has approved the sale of your annuity payments, the paperwork is then transferred to the new owner for them to start receiving your annuity payments. You will then receive your money through a certified check or wire transfer, but this depends on how fast you return your paperwork.
Key Reasons That Will Make You Sell Your Annuities
- investing in a home of your own or an investment property
- funding a college education for you or your family
- getting rid of any debts to reduce your stress
- starting your own business
- covering overdue medical expenses for you or your family
- purchasing a much desirable vehicle for your family
- in the case of a divorce
- in the case of assisting friends or family financial needs
- when you have lost a job
- the time you have inherited an annuity
- when liquidating a long-term investment