Learn About Your Annuity

We offer free expert advice on how you can make the most of an annuity or structured settlement, and how and where you can sell your payments.

Sell Payments

Understanding Different Types of Annuities

The basic definition of an annuity is a fixed sum of money that is paid to a person each year generally for the rest of that person's life. Making the best choice with your annuity depends on the type of annuity.

Immediate Annuities

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This is when you take a single lump sum of cash to convert into a steady stream of income. Though it's called 'immediate' the payout or 'distribution period' begins 12 months later.

Deferred Annuities

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This is when you pay a series of premiums in an accumulation period to get to some defined sum. Your payout or "distribution period" is deferred until a later date of your choosing.

These two overarching categories encompass hundreds of different annuity options.
You can learn more about the different types of annuities here:

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What is a Structured Settlement?

A structured settlement is a type of annuity that is awarded as part of a settled lawsuit.

Lump Sum

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Sometimes the settlement amount is small and a lump sum of money paid to the plaintiff all at once is an option. If you receive a lump sum payment, then for all legal purposes, you have been made whole and will not have to deal with annuities.

Structured Settlement

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In many cases, the settlement amount is large and may be difficult for the defendant to pay all at once so the two parties reach an agreement where the at-fault party will fund an annuity, guaranteeing regular payments over time.

Top Reasons To Sell An Annuity

We've narrowed down some of the more common reasons people decide to sell an annuity below:

  • Buying a house
  • Buying a business
  • Financing a Divorce or Marriage
  • Buying a vehicle
  • Finance College
  • Pay down student loans
  • Pay down credit card debt  (in order to improve credit-score)
  • Pay down outstanding medical bills
  • Providing a lump sum for relatives
  • Pay for a funeral
  • Purchasing a more flexible income product
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Latest From Our Blog

There's a lot to consider when learning about your annuities. Take a deeper dive into the details by reading our blog. 

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