- 1 Steps on How to Sell Annuity Payments for Cash
- 2 How Does Selling My Annuity Work?
- 3 How Long Does It Take to Receive a Quote?
- 4 Do I Have to Sell All of My Annuity?
- 5 Can I Sell a Portion of My Annuity?
- 6 Is It Legal to Sell My Annuity Payments?
- 7 How Soon Is Money Disbursed After Selling My Annuity?
- 8 What Are the Benefits of Selling My Annuity?
- 9 Share this:
- 10 Related
Steps on How to Sell Annuity Payments for Cash
Selling a structured settlement or annuity is a legal process and can be intimidating. An annuity is a financial contract meant to protect financial assets. It is also used as an alternative form of income after retirement. In exchange for a one-time lump sum or periodic payments — typically monthly payments — an insurance company will disburse gradual payments over a designated period of time — or until an annuitant’s death — specified in the contract terms.
You can sell annuity payments for cash. In the event your financial needs change and an annuity is no longer meeting your needs, you can sell your current or future payments for a lump sum of cash.
Annuities can be sold in portions or in an entirety. If sold all at once, you forfeit receiving all future periodic payments. However if you sell a portion of your payments, you will receive a lump sum of cash up front, and at a later time will be able to resume receiving periodic payments.
Selling your annuity is a legal process, so a judge must approve the sale.
How Does Selling My Annuity Work?
Before proceeding with the decision to sell your annuity payments, it is highly recommended that you consult with a financial advisor to evaluate whether this transaction is in your financial best interest.
Selling your annuity is a thorough legal process that involves a number of steps:
- Research annuity buyers for best service
- Receive a quote
- Consider legal representation
- Complete and submit required transactional paperwork
- Present case before a judge for court approval
- Receive payment
How Long Does It Take to Receive a Quote?
Typically, receiving a quote — free of charge — takes only a few minutes but can be completed within a day for more complex sales. Beginning the selling process is simple, and receiving a quote is the first step. Be sure to shop around to a few different annuity buyers for the best quote.
Do I Have to Sell All of My Annuity?
While it is a common decision to sell an entire annuity contract, emptying your entire investment is not the only option. Selling your annuity contract in full provides you with a large one-time lump sum. However, if you need immediate access to cash for a down payment on a house or for unexpected debt, you can choose to sell a portion of your payments. This will guarantee you a lump sum payout, but will still provide you with periodic payments at a later date
Can I Sell a Portion of My Annuity?
Yes, you can choose to sell a portion of your annuity in the event you have unexpected financial emergencies. A partial annuity sale allows you to sell a portion of your payments by dollar amount or by time period — such as years in distribution.
If you have a 20-year annuity but you need immediate cash, you can choose to sell years three through five or any other time period of payments. During those designated years, you will receive no payment in exchange because you will have already received cash up front. Instead, the company you sold your annuity payments to will receive the money. After that period has passed, periodic payments will resume.
Is It Legal to Sell My Annuity Payments?
An annuity sale transaction is legal, and is in fact a legal process that requires court approval prior to receiving a lump sum payout. Judges want to ensure that selling an annuity is in your best interest and will not put you or your family in financial jeopardy.
Once your transaction has been approved by the court, you will be eligible for an annuity payout.
How Soon Is Money Disbursed After Selling My Annuity?
The selling process can take anywhere between 45-60 days before disbursing payment. An annuity sale is a legal process that requires court approval, signed documents and proper representation to ensure the transaction is in your best interest.
If you need immediate cash but are still waiting for your annuity sale payout, some annuity buyers may offer immediate cash advances that can help with outlying expenses.
What Are the Benefits of Selling My Annuity?
Selling your annuity provides you with an influx of cash that can help to build a better quality of life for you and your family. A lump sum of cash comes with a newfound freedom to invest in other financial options, alleviate debt, and even travel.
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