When you sell your annuity payments, you will have the option of either selling some or all of your annuity payments to a factoring company on the secondary market depending on your financial situation. For many people, a partial sale will make the most sense because they will still be able to receive the tax benefits of annuity ownership and receive payments later on. However, in other situations, a full sale of all payments will be necessary to receive the largest lump-sum payoff available.
One final topic we would like to talk about in this subject is the actual amount you should expect to receive in the form of a lump sum. There are many things that factoring companies will look at when determining a figure. These will include the value of the annuity, the amount of payments being sold, the interest rates, the economic market, etc. These companies are in the market to make money, so you shouldn’t expect to receive the full value of the annuity in cash. However, the trade-off is that you can receive money immediately to take control of your financial situation.