Annuities provide a consistent income source. Occasionally, people’s needs change, necessitating a re-evaluation of their financial plans. This can happen in situations of crisis or fresh opportunity. What if you can’t wait and you need money right away for something unexpected?

Selling future payments instead of waiting for your scheduled payments from your annuity could get you a lump sum of cash quick. You will, however, lose some money since you must sell your annuity at a discount.

So how do I sell annuity payment?

Assess your options

Contrary to what might be said, you don’t have to sell your whole settlement or every payment that will be made in the future. Several options are available for selling annuity payments, so it’s crucial to be aware of them to pick the ideal one for your financial requirements.

  • A full sale: You will receive a greater lump sum payout and no additional annuity payments in the future because you sold the entire value of it.
  • A partial sale: you can sell some of your future annuity payments for a one-time lump sum payment. You’ll start collecting the remaining periodic instalments later in time per the terms of your deal.
  • Sell a portion of payments. You can sell a portion of your future payments. For example half the value of a single future payment. This way, you will receive a lump sum while still keeping regular payments coming, although they will be smaller in value.

First, decide on how much money you need before deciding whether to sell your annuity. To strategically use the funds, you must have a clear goal.

Find buyers of annuities and request quotes

Since there are a few factoring businesses that buy annuities, thorough research is essential to selecting the best deal. Before choosing, compare online reviews and obtain estimates from several companies that buy annuities.

Compare quotations

Compare quotations and choose the one that you are most comfortable with looking for the offers that give you the greatest deal while also exhibiting credibility, professionalism, and openness. Don’t forget to account for the lump sum payment and any possible fees associated with the sale.

Complete the paperwork

You must complete some documentation. The buyer will help work through it all wherever possible, and they can help if you have any questions. The structured settlement company receives the completed documentation and will then help initiate the legal process required for the sale.

Present your case in court

The courts must sign off on the sale for it to be completed. You can’t sell your structured settlement annuity payments until the court gives the okay. Typically, what is required, among other things, is a justification for why you must sell your annuity payments. The judge will want to ensure the sale puts your well-being in a better place, not a negative one. This step is very important to protect the interests of the annuitant and ensure they are not taken advantage of.

Receive your lump sum

After the court approves your sale of the annuity payments, you can now receive your lump sum. The process may take a few months from start to finish depending on the various factors involved.


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