It can be nice having an annuity to provide regular payments for ongoing income, but sometimes that small drip of money just isn't enough. If you find yourself in need of a lump sum payment, you may be wondering to yourself, "Should I sell my annuity? And if so, how do I find someone to buy my annuity?" Selling your annuity for a lump sum may be your best option under a number of circumstances. Here's some information to help you decide.
Why Would Someone Buy My Annuity?
You've probably seen a lot of ads on television about people and businesses that buy annuities and structured settlements from people. In fact, one of those "buy my annuity" ads may have been what made you consider selling yours. Obviously, these businesses aren't buying annuities because they're nice people who want to help you out when you're in a financial bind. They intend to make a profit over time, of course.
The way they do that is to buy your annuity for less than you'd receive over the course of its life. They'll be paying you a lump sum payment in return for a steady income stream. In return for the immediate cash, you'll be giving up anywhere from 9 to 25 percent of your future income from your annuity or structured settlement.
Does That Mean I Shouldn't Sell My Annuity?
The decision to sell an annuity - or, to be more specific, future annuity payments - is a personal one and depends entirely upon your personal circumstances. Just as there are many reasons that people own annuities, there are many reasons why they decide to sell an annuity. The most common reason for people to sell their annuity payments is that they have an immediate financial need for a large amount of cash. You may want a lump sum payment to pay for unexpected medical expenses, to invest in your business or to save your home from foreclosure. That immediate need for cash can far outweigh the advantages of getting a smaller payment every year.
Is It Easy to Get Cash for My Annuity?
It would be nice to think you could just call up a company that buys annuities and just say, "Buy my annuity," and BING! It's done. Fortunately, it's not quite that easy to sell your future annuity payments. Most states stringently regulate and supervise the sale of annuity payments to third parties. It may take up to 30 days for you to receive your cash payment, and in many states, you may have to appear in court to explain why you want to sell your annuity. While that may seem like an inordinate amount of hassle when you really need the cash now, the laws are there to protect people from unscrupulous companies.
How Do I Find Someone to Buy My Annuity?
If you've decided that selling your annuity makes the most sense, there are many companies out there who buy structured settlements and offer lump sum payments for the transfer of future annuity payments. Do your homework carefully before deciding on a particular company, and consult a lawyer to make sure that you get a fair deal.
Author Resource:
Chris Robertson is an author of Majon International, one of the world's MOST popular internet marketing companies on the web.
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