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.
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.
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:
A structured settlement is a type of annuity that is awarded as part of a settled lawsuit.
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.
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.
We've narrowed down some of the more common reasons people decide to sell an annuity below:
There's a lot to consider when learning about your annuities. Take a deeper dive into the details by reading our blog.
Sell Any Annuity strives to be a trusted resource for people looking to learn about their annuities and what they can do for them. We also service those with annuities who have made a decision to sell.
Get the cash you need when you need it, right now. Contact us right away to see how we can help.
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