As an annuity owner, you have the ability to sell your annuity for a lump sum of cash if you so desire. We’ve talked about reasons in past posts about why this might be necessary. You may need immediate cash to pay a bill or address an upcoming expense. Or you may want to take advantage of an investment opportunity that could potentially pay out larger dividends. Whatever the reason, in an annuity sale, it takes two to tango, so one of the most important steps will be finding a buyer.
Who Are the Annuity Buyers?
There is a secondary, heavily-regulated market that consists of factoring companies and individual investors that purchase annuity payments from annuity owners for lump sums of cash. These parties compete with one another to offer the highest quote on annuity payments. A quote will be calculated using a number of different factors, including the number of annuity payments, how much money is left in the annuity, the current market rate, any fees associated with the annuity, and the rating of the insurance company that issued the annuity.
When you start your search for a buyer, you will likely look on the Internet and see what buyers are out there. You will notice right away that there are many different buyers out there. This means you’ll have to start investigating, so you can find the best buyer for the transaction. Obviously, the amount quoted will be a major factor on which buyer you decide to go with, but it shouldn’t be the only one. You should go a little deeper and ask the potential buyer questions, so you can make an informed decision. Here are a few questions you should certainly consider asking:
- How long have you been in business as an annuity buyer?
- Are you certified and licensed with any specific agencies?
- How long is the quote good for?
- Will your attorneys assist with the selling process?
- Do you offer any instant cash advance options?
- What is your timeline for issuing a lump sum payment?
If you are satisfied with the buyer’s answers and you have investigated the company on your own, you can then proceed and accept the buyer’s offer and wait for your cash. If you are concerned about finding the right buyer, we would highly encourage you to talk to one of our representatives who can connect you with one of our recommended partners. We evaluate our buyers using very stringent criteria, and we are in business to help annuity owners find the best buyer for their annuities. Contact us today at 855-993-0431 to get started.