The right steps to find a buyer of annuity structured settlement

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.

Money in AirHow 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?

Money QuestionOne 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.

Three Tips to Sell Annuity

Many people own an annuity. They purchased it to have a steady flow of income, but don’t really understand how their annuity work. Owners of annuities only care about their investment and receiving money on a certain date. Many times holders will consider selling it when they need cash now for something.

Sell Annuity

 1. Is your annuity Sellable?

Not all annuities are sellable.  Find out if your annuity is a structured settlement. Most states have laws that protect people who want to sell their structured annuity. If your state has a Structured Settlement Protection Act a judge will have to approve the sale. This is to protect your best interest. Before you shop around for annuity buyers, find out what the resell value of your annuity is.

2. Find a buyer for your annuity!

Annuities are complex. It’s important to find a reputable annuity buyer that will guide you and explain the process. When selling anything look for multiple offers. Visit websites that offer to buy annuities. Use their quote form to get a quote from them at no cost. Sellers need to understand that they will not receive the full value of the annuity, any company you reach out to, will review your annuity and make you an offer that is beneficial to both parties.

3. What you will receive for your annuity.

Did you know that depending on the seller’s needs and financial situation, an annuity could be sold in different ways?

  • The most common is the Straight purchase. The company buying your annuity gives a generous lump-sum payment for the entire annuity. Seller stops receiving scheduled payments.
  • Many go for Partial Purchase. This gives the option to the seller to only part of the annuity. This is a good solution to a sudden cash flow problem. Get the cash you need, but still keep your future payments.
  • Split Purchases. Sell a part of your monthly payment. Receive a lump sum for the percentage you sell and still receive monthly payments.
  • Reverse Purchases. Sell some years of your annuity. If you have a 20-year settlement you can sell specific years (example years 5-10).  You will keep receiving your monthly payments till the 5-10 year timeframe of your annuity. After that your payments restart.

These are few tips to consider when selling a structured annuity. Ask the company buying your annuity to help you decide what option is best for you.

Why Sell Annuity Payments?

An annuity is a contract between you and an issuer, which is typically an insurance company. Over time, you pay money into the annuity, and the issuer guarantees to pay the principle and any earnings back to you or a specified beneficiary at a designated maturity date. There are different types of annuities; in some, your money will earn a fixed amount, and in others, your money will be invested in an attempt to gain higher return. Once your annuity reaches its maturity date, the issuer will send you regular payments from the account, generally on a fixed schedule.
People typically purchase annuities to provide themselves with retirement income or to settle a pending lawsuit via a structured settlement. In certain types of structured settlements annuities, the insurance company is not required to give you back any money if you wanted to cancel. This is where we can help. We will pay you a lump sum in exchange for selling your structured settlement annuity payments to us. There are a few situations in which this might be prudent:

1) Some people purchase an annuity and find it is simply not for them. Long term scheduled of fixed cash flows just isn’t well timed to meet your needs; you might want to cash out.

2) You need a large sum of cash due to a medical or financial emergency.

Do you currently have an annuity or a structured settlement? Would you like to speak with someone further about if cashing out all or part of the annuity is the right choice for you? 123 LumpSum is happy to help. Give us a call today at 1-800-400-9123.