Are you tired of consistent monthly payments? Are you in need of a larger amount of money in a short-term period? Are you questioning yourself, “Should I sell my annuity?” If that’s the case, your answer is an absolute yes.
Selling annuities is a feasible choice for individuals who need cash ASAP. Whether you have a debt to pay off, an investment to pursue or any other situation, you can sell annuity payments instead of going through the hassle of applying for a bank loan. There are buyers that can purchase your annuities and give you cash in hand in a couple of days, weeks or even months.
A structured settlement is a regular payment administered by insurance companies on a monthly or yearly basis for a set period of time. It is usually tax-free. You can sell annuities either partially or as a whole depending on how much cash you need and the amount that the insurance company owes you.
You may be wondering, “How much will I get when I sell my annuity?” The truth is there is no predetermined amount or percentage for that. Many factors determine the value of your annuity and your buyer puts all of them into account. Some of the factors include:
- Financial stability of the payer
- Balance remaining
- Any balloon payments due
- The time left
Since the purchaser assumes a risk, the buyout is never a 1:1. This means that when you sell annuity payment, the amount you receive will be lower than the balance remaining. Why? You ask. Well, the reason is simple, inflation. The economy is not always predictable. It could take a hit with time. Hence, the buyer will opt to give you less than you deserve so that in case inflation occurs, he doesn’t incur a major loss.
Selling annuities is a major decision that one has to make. But before you decide to get cash for structured settlement, there are considerations to make. These include:
- The money’s importance.
Evaluate whether the need to have the money instantly is a must. This will save you from any chances of squandering the cash you receive.
- Consult an attorney/accountant
An expert such as an attorney will help you determine whether the company that wants to buy your annuities is trustworthy and will give you a reasonable quote.
iii. The worth of the annuity
Try to come up with an estimate value that you wish to get after selling annuities. After that, find a company that will give you such a price or higher or not so much lower than you expected.
What are the advantages of selling annuities?
Selling annuities comes along with many benefits. Some of the advantages are:
- You get all your money in one lump sum.
- You can easily pay off a debt and you no longer have to worry about it.
- You can take care of your child’s education at once.
- You can decide to retire earlier knowing that you have the cash you need to run your daily life.
To conclude, if you are in need of a lump sum money and you have annuities, consider selling them to a qualified and experienced buyer that can offer you top dollar for your annuity.