The Basics of Selling Annuity Payments

Selling your annuity can be intimidating. But, once you learn more, you'll see that it's actually an easy process. Read on to find out everything you need to know about the basics of selling your structured settlement for cash.

What Is an Annuity?
An annuity is a financial contract that protects your assets. This is also commonly used as an alternative form of income after retirement. In return for a lump sum or periodic investments, an insurance company will distribute gradual payments over a certain period. This type of savings accumulates interest after some time, which allows the initial value to increase.
Annuities are tax-deferred. Although the interest grows, it won't be taxed until it's withdrawn. This status helps increase the earnings of an account.

Can I Sell My Annuity?
Yes, it's possible to sell your annuity for a lump sum of cash. This can be done if your financial demands change and a structured settlement is no longer meeting your needs.
Annuities can be sold in their entirety or in portions. If you sell them all at once, you'll no longer receive periodic payments. But, if you only sell a fraction, you'll gain a lump sum upfront and resume getting cash every month.

What's the Benefit of Selling My Annuity?
Selling your annuity gives you an influx of cash that will help you build a better life for you and your family. A lump sum provides you with an opportunity to invest in other financial plans, eliminate debt, or focus on recreation.

What Is the Process?
The usual process of selling an annuity can be summarized in six steps:

• Contact a purchasing company and get a free quote.
• Look over the offer and compare it with others. Choose the one you think would work best for you.
• Get a cash advance to help provide for your daily expenses while waiting for your court date.
• Go to your court hearing where a judge will review your case since this is a legal process.
• Send a copy of the transaction order to your chosen finance company.
• Receive your full payment.

If you're still thinking, "Should I sell my annuity payments for cash?" talk to your lawyer or professional consultant and ask for advice. The decision-making process must not be rushed because it requires a lot of consideration. Compare your options and think about the best choice for your future financial needs.