There are three basic ways to sell an annuity.
In a partial sale of your annuity you are selling payments that you would have gotten over a given period of time. It's up to you how many of those payments you sell. You can hang on to some of your annuity's value and receive monthly payments, however your payments would start later depending on how many of them you sold.
You can also get a lump sum for a portion of the value of your annuity. In this scenario you would still get a monthly payment but each payment you received would be less depending on the amount of the overall value that you sold off.
You can also sell your entire annuity all at once. In this scenario, you would receive one large payment in exchange for all your future monthly payments.
What Companies Buy Annuities?
The process of buying an annuitant's future payments is known as factoring.
Companies that buy annuities are known as factoring companies, but those companies may offer factoring as part of a larger list of services.
Our partner, CBC Settlement Funding is a good example of a factoring company.
What Are The Steps To Selling An Annuity?
Selling your annuity or structured settlement can seem complicated or confusing, but it doesn't have to be. It is recommended that you seek the advice of a financial expert or lawyer to help guide you through the process, and to help you determine if selling is in your best interest both in the short term as well as in the future.
If you've made the choice to sell your annuity, you'll then have to contact a factoring company like CBC Settlement Funding to get a quote. They will draw up the paperwork for you and your lawyer or financial expert to go over.
Next you will have to schedule a court date. Any sale of an annuity or settlement will have to get the approval of a judge.