If you already own an annuity and wish to sell annuity payments, there are several options available. You can sell annuity payments for annuities that have been purchased by yourself or inherited from another family member. You may like to get a lump-sum from a personal injury insurance settlement, or just receive a partial amount and still be able to receive future regular payments. The arrangements are very flexible to get cash for annuities.
The decision to get cash when you sell annuity payments should be considered very carefully. Annuities are tax-deferred investment vehicles, and the tax consequences in the present and effect on future tax liabilities must be analyzed. You also have to consider the reasons you purchased an annuity in the first place, which was probably to provide a stable income in your retirement years. Getting cash for annuities now will reduce that future retirement income, and may require some lifestyle adjustments.
First, be aware that the amount of cash that you receive when you sell annuity payments is going to be less than the total of the future payments because of the discount effect of future cash flow. You must determine the current value of your annuity and calculate the its discounted value as of today. Interest rates are constantly changing, and you have to decide if it makes financial sense to get cash for annuities now or if it would be better to wait for more favorable market conditions.
It is very important to deal with an established structured settlement company. These people are very experienced with the intricacies of the process, documentation and any legal issues that must be considered. All of these structured settlement companies charge a fee for their services, so you must shop around and get quotes from several.
Families get into financial difficulties all the time. It could be from unexpected medical expenses, sudden need for home improvement, such as repairing a roof, or maybe you need to catch up with mortgage payments. The possibility to sell annuity payments could be a good solution.
