Selling fixed annuities
A fixed income annuity provides you, or you and your spouse, with guaranteed1 income by turning a portion of your savings into a stream of income payments for the rest of your life or a set period of time.When you bought your annuity, you worked with a broker or other financial planner to build the policy to help you pay for the things you wanted in the future. Your reason selling fixed annuities can as a result of emergency and you might need a large sum of money.
Why should you sell fixed annuities?
Everyone’s situation and reasons for selling are unique. Know the reason why you want to sell your annuity and be sure about it. Some of the common why people sell their future payments is because they:
- Inherited an annuity and would prefer to receive a lump sum of cash instead of monthly salary
- Are experiencing unexpected life changes that require additional cash now.
- Need to make a change to their investment or estate planning strategy
- Realized the annuity no longer applies to their new circumstances
- Need capital to fulfill the dream of starting a business of their own or investing in one
- Want to fund either your child education or even yours
- Want to use a lump sum to pay off debt they acquired from credit cards, loans, or medical bills
Know the worth of your fixed annuity
Knowing the worth of your annuity is an essential step when you decide to sell it. However, calculating the worth of your annuity is not a simple thing. There are a lot of factors that affect the value of your annuity and the selling price.
Figuring out how much cash your annuity is worth today is an important step when deciding if you want to sell it, but it’s not just a simple calculation. The company that issued your annuity, the special riders you placed on it to change how much money you received with each payment and several other factors change how much we can offer you for your payments. Some of the factors that can affect the future value of your annuity include the amount of remaining payment, term, and frequency of your payments and how soon your payments come due.
Know your fixed annuity sales options
When you are thinking about selling your fixed annuity, it’s important to know you have options for selling it. The options available for you to sell your annuities are;
You can choose to sell a portion of your annuity. If a portion is sold, you will continue to receive payments. You can choose to sell a period of your payment. During this period, you will receive no payments. After the period elapses, then you will start receiving payment.
You have the option of selling you entire annuity through the full term of your contract. This result in clearing out your investment all at once. You will no longer receive scheduled payments.
Find a buyer
Find established and reputable annuity buyers to avoid fallen into the hand of frauds. Do accept offers in haste. Understand the terms and condition perfectly and when you find a buyer whose offer pays you then you sell.