Many people are worried about the possibility that one day they might exhaust their income, especially after retirement. That is why life insurance is something that many are very keen on. In life insurance, there is something called annuity. It is a form of insurance policy which allows the insured to save money for retirement over a specific period of time and entitles them to a series of annual earnings upon retirement. When someone invests in an annuity, they set the stage to receive income in the future, depending on the terms and conditions of the insurance contract.

Basically, there are two types of annuities:

· Immediate Annuity

· Deferred Annuity

With an immediate annuity, one starts to receive payments as soon as they make their first investment. If someone opts for deferred annuity, their money is invested for certain duration of time upon which they will be ready to begin taking withdrawals-essentially once they retire.

However, annuities can be further subdivided into fixed and variable. With the former, the insurer agrees to pay a fixed rate of income to the insured for life after a certain date. With the latter, the insurer offers the insured the opportunity to generate higher rates of returns by investing in equity and bond subaccounts.

Can One Sell their Annuities?

When a person buys the annuity insurance policy, they do so such that they could be able to pay for the things that they may want or need in the future. However, sometimes a person’s life can change in ways that he/she could have not imagined. The insured may face a terrible financial crisis, needing a lot more cash than the current annuity payments they receive.

Unluckily, changing or adjusting annuity plans is not very simple. Usually, once one purchases the policy, making changes is literally impossible. No matter the insured’s financial situation, they will still get their money, but only in the small, regular payments, depending on the terms and conditions that they agreed to. Fortunately, there are some companies that will bail out by buying partial or entire annuity payments in exchange for a cash lump sum. Selling annuity payments is a very simple process, one only needs to complete the required paperwork and they are good to go.

How To Sell Annuity Payments

While selling annuity payments is as simple as 123, it is easy to make mistakes that will haunt you for the rest of your financial life. The following steps will help you sell your annuity successfully and receive a good one-time lump sum payment;

1. Give It a Thought First

Before you make the final decision to sell your annuities, ensure that you research and understand well all of the pros and cons of selling annuity. You want to safeguard your finances because nobody is going to do this for you. Sometimes putting your annuity up for sale may give an impression that you are desperate for money and as such some companies may try to take advantage of you, by quoting prices below market value. Selling annuity payments requires due consideration beforehand.

2. Consult with a Financial Expert

Before you put your life savings up for sale in exchange of a lump sum amount, be sure to contact your financial advisor in order to see if the annuity can even be sold and how it will affect you financially by doing so. By knowing what the implications of selling your annuities are, you’ll be in a better position to make an informed decision on the matter, and then precisely decide whether or not to go ahead with the sale.

3. Look Around for the Best Deal

Once you decide to sell your payments, do not rush. You don’t have to go with the first agency. Obtain quotes from many different companies that buy these types of payments. Beware of companies that offer lower lump sum payouts in order to reap bigger. By taking your time to obtain as many quotes as possible, you can be sure that you will find the best buyer.

Why Would You Sell Your Annuities?

There are many reasons why one may decide to vend their annuity payments. Some of them include but not limited to the following;

1. To invest the money elsewhere.

2. To get out of huge debt and have a peace of mind.

3. To receive a lump sum payment once and for all rather than regular inadequate payments.

4. To fund education, travel or wedding or to buy a home, car, or any other large and costly item. 

5. To avert the implications of inflation on your savings in the future. In fact, this is one of the top reasons for selling annuity payments.