Structured Settlements

sell annuity settlement

Selling Annuities: Important Things to Know

Annuity is just like any other investment we make for securing our future. In annuity, a person can pay a single lump sum payment or pay in installments and in return of this, he gets back a specific amount of money every month, annually or for life. Annuity is however different from life insurance as unlike life insurance, annuity does not provide any life insurance cover but a person gets guaranteed income for the decided period of time.  Main reason for buying annuity is to secure one’s retired life as one can get income during that period, this is also one of the reasons why annuities are also referred to as pension plans.

Selling annuity is perfect for a person who prefers a lump sum payment instead of consistent payments on monthly basis. A person might want to sell annuity for a variety of reasons, such as selling annuity payment to make a big purchase like a home or retirement vacation home. Sometimes selling annuities is a better option as these are not a great long-term investment.

While selling annuities a few important things should be kept in mind, such as sell only those structured settlements which help you in meeting your current financial needs. An annuity owner has the option of selling all his payments, some of his payments and even a certain portion of each incoming payment. By selling only a limited number of annuity payments, you can be in control of your financial condition.

When selling annuity, you might be attracted to a company that is offering you the highest amount, but it is important to study all the terms and conditions carefully to avoid any complications later. Look for a company that provides you with fast processing services and is not charging any processing or other fees. To sell a portion of your annuity payments or all your annuity payments for lump sum cash, get consultation from the experts.

About the Author

David Smithen is a Financial Consultant working for Sovereign Funding Group offering non-risk structured settlements service including buying and selling annuity payments, structured settlements and lottery winnings.

Selling an annuity payment?

i was in a accident when i was a child and i ended up getting a insurance settlement from symetra financial i was thinking about selling one of my payments that is due in 2017 the amount due is 93,000 but they only are offering me 33500 i calculated the present value with the fed rate at 3.60 and the present value is 69,467.03 is there a way i can get that amount? since the 93,000 is guaranteed

You’re going to have a hard time finding someone that’s willing to make 3.6% on an 9 year loan. The companies that buy annuities want to make some money off of the deal, they probably are calculating closer to a 12% return for themselves, which would pay for their operating expenses, and commissions to their buyers, and profit for their investors.

I agree with you, you will likely have a hard time finding a condo in the Miami area for that little money. There are certainly parts of the country where you could get a condo for $30,000. Keep in mind that the guy at the company trying to buy your annuity is likely to make a nice commission if he convinces you to sell, so he’ll tell you many things that may or may not be entirely true.

I hope that helps.

JG Wentworth – It’s Your Money Video

sell annuity settlement