In 2019, individual annuity sales reached a total of $241.7 billion dollars. If you find yourself needing to sell your structured settlement for any reason, know that you aren’t alone.
Financial hardships of all kinds arise at a moment’s notice. Layoffs, injuries, sudden sickness and much more can completely alter your financial plans.
It’s best to be as prepared as possible, and know your options if you already have an established annuity.
Below is a little background on annuities and the basic steps you need to know to sell annuity payments.
What Is an Annuity?
If you’re asking yourself “What are annuity payments?” then look no further.
An annuity is a series of consistent payments you can receive to collect your money over a set period of time. They can be organized in the case of one’s retirement, an insurance settlement, and much more.
Annuities are established in place of lump-sum payments. Lump sums offer the chance to receive your entire settlement at once. If you didn’t choose this, but find yourself facing sudden financial hardship, selling your annuity payments is a viable choice.
How To Sell Annuity Payments
Selling an annuity is a lengthy process that requires attention to detail at each step. Settling annuity sales can take up to 2-3 months, so if you have immediate financial need, keep this in mind.
It is also important to avoid selling your annuity too soon after receiving it.
Insurance companies have the right to charge you more if you sell your annuity too soon. Be sure to research your company’s policies on surrender periods before proceeding.
Here are the steps you need to take to sell your annuity payments.
Find Quotes Based on Your Individual Needs
Only you can determine the amount of money you need to offset financial hardship. Consider making a partial annuity sale if you want to avoid the total depletion of your funds.
Once you know how much you need, get quotes from different purchasing companies to find your best fit.
Many different purchasers work at different rates, so shop around for what works best for you. Companies like Rightway Funding and others offer several options so you can sell with confidence.
Check State Requirements for Legal Aid and Financial Advising
In some states, you may have to hire a financial adviser or an attorney before you can go through with selling your settlement. The requirements vary from state to state, so check out your state’s laws to be safe.
Seek Court Approval
Laws in all 50 states require court approval to officially settle the sale.
Some settlement purchasers may use predatory practices with their clients. The direct involvement of the court in the process helps nip this in the bud. Going through the court’s process helps protect you and your best interests.
Ready To Sell? Next Steps
Once you’re ready to sell annuity payments, prioritize picking the best institution to represent you. You’re well-equipped with the basics, so choose a company that aligns with your interests and financial needs.