Things to Consider Before Selling Your Annuity Payments

Things_To_Consider_Before_Selling_Annuity_PaymentsWhen you decide to sell your payments, your lump sum will be less than the original amount of the settlement. So why do it?

For starters, people who expect to receive structured settlement or annuity payments are in a great position. They have a fixed income stream that will last for a predetermined period or in some cases, for the duration of his or her lifetime. As secure as this situation might seem, there are times when cash is needed on-hand.

Medical bills, business ventures, and even the more mundane obligations like paying utility bills can creep up. For those who are in a position to sell a structured settlement, they often do as a way to have an influx of cash when they need it most. One of the best things about having the ability to sell payments is that the entire amount does not need to be sold. There’s flexibility built in—you can sell just part of the settlement and receive the remainder in monthly installments as per the original plan.

Even if you do not have an urgent need for cash, structured settlement owners can still sell their payments. Some people use their lump sum payments for potentially lucrative investments. Many opt to better their lives by buying a home or reliable means of transportation. Others use the funds to take care of family obligations—pregnancy and childcare, tuition and school supplies, and more.

Consider these things before you make a decision:

1) Choosing the right structured settlement firm. When you sell annuity payments, it’s a big decision that shouldn’t be made on your own. By talking to different annuity buyers and businesses, you can get a clear idea of what the negotiations will be and whether cashing in is right for you.

2) Having your paperwork ready. In order to get a quote, you’ll need a copy of your current driver’s license or state ID card. Next, be sure to have a copy of your social security card handy. Additionally, you will be required to show a copy of your annuity contract or benefits letter from the insurance company as well as the settled agreement.

3) How much you want to sell. Most firms will try to buy all of your payments, but it might not be necessary. Determine how much money you need now. You might only need to sell a portion of your annuity payments. A good structured settlement firm will work with you and customize a plan that is based on your financial needs. You might be able to accomplish your financial goals and still have money coming in from partial payments.


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