Structured settlements and annuity payments are wonderful items to have, especially during times of unemployment. However, they may not be the best option for the annuity owner in all situations. Some annuity owners may consider cashing out on their structured settlements. Some companies will gladly buy structured settlements from people and provide them with the lump sum funds that they need for a variety of reasons. The following is some information on selling structured settlements and annuity payments.
When Should a Person Cash Out an Annuity?
A person may want to sell a structured settlement for a number of reasons. One of the most common reasons that people sell their annuities is that they can not afford to pay the bills with the limited income that the structured settlement provides. The recipient may still be recovering from a personal injury and need to have more available funds to keep from losing the home and other assets. A new home or car purchase is another reason to think about cashing out an annuity. Business investments are other possibilities.
Types of Annuity Purchases
An annuity owner does not necessarily have to sell the entire annuity. Some companies will buy parts of an annuity and allow the owner to keep the rest of it. This type of arrangement is best for a person who is healing from an injury and can go back to work after the injury subsides. The lump sum may be necessary to pay the bills now but may not be needed later. The person can sell half of it, a quarter of it, or an extremely small portion of it depending on the circumstances.
How to Pick the Right Company to Sell an Annuity
It is important for a consumer to choose the right company when trying to sell an annuity. Each company varies in the amount that it offers for annuities. A prospective annuity seller should compare at least three companies before deciding who to sell the annuity to. The person should review the website and call the company to ask any questions that he or she needs answers. To check the integrity of the company, the prospect will want to read the consumer reviews and visit sites such as the Better Business Bureau site so see what people have to say about working with the company.
How to Sell an Annuity Today
The person who wishes to sell the annuity will need to have some information on hand. The prospective buyer will want to have proof of the annuity. Some companies will ask for the person’s lawyer’s information so that they can speak with the lawyer about the annuity.
The process usually starts when the interested person asks the other company to buy his or her annuity. The company takes information and then sends the prospective seller a quote for the amount that it can pay for the annuity. If the person agrees with the quote, then he or she will express interested in completing the process.
The prospective buyer creates a contract that the prospective seller will need to read and show to his or her lawyer. If everything in the contract looks kosher, then the prospective seller will sell the contract and give the green light to the prospective buyer. The buyer will then send the cash advance. The two parties will need to have approval from a judge before the transaction can complete. Once the judge signs off on the agreement, the process is finished, and the recipient can use the funds right away.
Should You Sell Your Annuity?
Structured settlements should never be stressful for a person. You should be able to relax and not have to worry about stressful events such as losing your home. If you are experiencing stress because of the way you receive payments, then you will need to seriously consider selling your annuity so that your life can operate in a smoother fashion. Talk it over with your financial adviser and then decide whether or not you want to go through the processes. Some of the companies that purchase annuities can make it well worth your while to sell yours.