How to Sell Annuity Payments and Get Your Money Worth

Do you have an annuity payment that arrives for deposit into your bank account on a monthly basis? If so, do you realize you can sell annuity payments that you receive monthly for a one lump sum? Wouldn't it be nice to have all of your money at one time instead of getting just a little of the larger pot on a monthly basis?

When you sell your annuity payments you will be giving up that monthly income. However, in many cases, people find better uses for the money if they had it in a lump sum payment. For example, if you inherited an annuity payment, then if you would sell annuity payments for the lump sum amount then you would be able to put on a down payment on a house or pay for your child's college tuition fees. There are many other things that the money could be used for, so I you would like to learn how to sell your payments, then continue to read.

The Facts

Here is a list of steps that you can use as a guide to help you find the best way to sell your payments:

1.Contact the insurance company first and see if there is a way that you can cash in on the annuity for its value instead of actually selling it. You could possibly end up with more of the money this way, instead of having to pay the fees that occur when you sell annuity payments. You will more than likely have to pay some sort of a penalty for cashing it in. Keep in mind that each annuity can come with different terms, so you will not know the terms if you don't call and ask.

2.Contact a company, on what is called the secondary market, which will buy the annuity off of you. Make sure that you ask them for a free quote. You can find a variety of companies who offer this service when searching the Internet or you could just ask your insurance company for a recommendation. Whatever you do, check out the company's reviews from other sellers to see what kind of reputation that they have. And, don't settle for the first quote; make sure that you do some comparison shopping in order to find the best deal.

3.Compare the quotes that you receive from both the insurance company and the companies on the secondary market. The money is yours and you don't want to have to give part of it to the company. By comparing quotes that you received to sell annuity payments, you will be better able to compare which company will offer you the best rates/penalty fees.

So, if you would like to receive your payments on your annuity as a one lump sum instead of a monthly payment, then use this guide to help you with the process of how to sell these types of payments. In the end, you will be glad that you obtained several quotes and compared the offers.