You may be surprised at just how easy it is to sell your annuity or structured settlement payment plan in order to get settlement money now.
When you sell an annuity, you essentially give up your small increments of payment installations in order to receive all of your lottery winnings or structured settlement agreement money at once, in what’s called a lump sum. There are many reasons why people choose to sell an annuity: to pay off credit card debt (the average consumer has 3.5 credit cards), to put a down payment on a house (the average cost in 2010 was $272,900 for a new home), or to simply help make ends meet (some 40% of American families spend more than they earn). After all, it’s your money, and you are entitled to receive it whenever you want.
The process of selling an annuity involves some serious consideration on your part, but in the end there are just three simple steps standing between you and your lump sum payment.
- Contact a financial institution that specializes in annuity sales.
First, you’ll need to get in touch with a credible financial institution that understands how annuity sales work. Know that there can be differences in rates between sellers, so be sure to shop around and ask for a quote on how much you can actually expect to receive as a lump sum by the end of the process.
- Arrange a court date.
Once you’ve decided on a seller, you’ll have to schedule an appearance in court. This ensures that your decision to sell an annuity has valid reasoning and will not unduly jeopardize the financial future of you or your family. The judge will then sign off on your sale.
- Walk away with your money.
Once you’ve submitted all of the proper paperwork, you should have access to your money within just a few days. Then, the rest is up to you!
While payment installment plans can provide a nice slice of income, sometimes we all need a little extra help up front. Bear in mind that you can also sell only a portion of your annuity — you don’t necessarily need to sell it all at once. That way, you can have the best of both worlds with immediate funds and long-term security.