To ensure that you receive a fair price for your annuity, you must know what it is worth. To get this information, you may want to ask an expert because an annuity’s distributions are taxable, and this has to be taken into consideration when pricing an annuity.
How Do You Find a Buyer?
Ask for a referral.
Make sure that the buyer has a good reputation.
Learn everything you can about selling structured annuities.
Contact the buyer by telephone or in person.
Ask several questions.
Move on to the next buyer if you detect any “bad vibes.”
Ensure that the buyer knows about the IRS code IRC 5891.
Compare offers from at least five different companies.
How Would You Like to Be Paid?
One option is to sell the annuity in its entirety. The buyer gives you a lump sum of cash, and you will no longer receive periodic payments. You can also sell a portion of your annuity. After the contracted time has passed, you will begin to receive payments again.
You can also sell a portion of the payments you are currently receiving. For example, you can sell $250 of a $500 monthly payment to a buyer of annuity structured settlement. You will obtain a lump sum of money and continue to receive your regularly scheduled $250 payments.
Prove that You Own the Annuity
It will be your responsibility to prove that you have the authority to sell your annuity to a buyer of annuities or structured settlements. The annuity policy and a government-issued identification card are just two of the documents you will be asked to provide.
The more you know, the more prepared you are to make a decision on a buyer of annuities or structured settlements. If you have any questions contact 123 Lump Sum and talk to one of our financial advisers.