The Process of Selling Annuities and Structured Settlements:
Annuities and settlements are purchased by a number of companies, and all these companies function in a similar manner. However, with some companies the process is safer and quicker and they provide better services.
Generally, it is a very basic process to sell a structured settlement or an annuity.
- The first step is to decide that you want to sell a structured settlement or an annuity.
- Next step is to consider those quotes which are given to you by the potential buyers.
- Trigger the start of sale, after choosing a buyer.
- After that you will need to get a judicial approval for your sale. It is through a ruling by court stating that the sale is in your best interest.
- Receiving your payment.
Decision to Sell:
You should consider all the available options and look at pros and cons of each option before deciding to sell the structured settlement. You should ensure that selling the structured settlement is in your best interest, while keeping in mind the future as well as the current financial situations.
Following are some important factors to consider:
- Do I need cash right away and why do I need it?
- In order to get the needed money, is selling the annuity only available option?
- Whether selling my structured settlement or annuity now would jeopardize my financial security in the future?
By answering these questions, you have to decide the best option. These questions will also be asked to you by others throughout this process of selling, so you should be confident that you know the correct answers.
Do you want to sell the annuity?
In case you are sure that you want to sell the annuity, you should get a quote right now within minutes. You may begin shopping for best quotes, once you make the decision about selling the structured settlement or annuity. A number of different factors which surround your annuity will determine the money amount which you will receive. These factors include total value of annuity and when payments are set to be disbursed.
While shopping for best quotes, you should make sure to do research and also to perform due diligence so that you do not have to regret the decision in future, as it is a big decision. You should also get advice from experts and your trusted friends.
You should not only focus on the financial value of given offer, but also consider other factors and you should be working with the company which will give you good service. Make sure to work with a seller who is trustworthy. For this you should check their experience and track record, and you should not rush. Make the right decision after taking your time.
A reputable buyer will usually investigate if selling your annuity or the structured settlement is in your own best interest. In case it is not, that company will not proceed forward. So if they are asking any questions to you about the current situation and making an attempt to assess if you should be selling your structured settlement or annuity.
The reason for this is that companies want to ensure that the sale will be approved by the court, and have to maintain their integrity and reputation.
Because the courts are required to consider the sellers best interest before giving approval for the sale, none of the companies wants to get involved with pushing anything which is not in the benefit of the seller.
If you are curious as to what amount of money you can expect for the annuity, you can get a free estimate. You will get a quote very quickly, after answering just a couple of question.
Selecting a buyer:
After you have decided which company you are going to go with, you will be functioning under different laws at the state as well as the federal level to go through the process. After you get an offer, the important details will be given to you like how much you want to sell, what you will receive and by selling now what will you give up in terms of value.
It should be understood you and conveyed to buyer that you are accepting providing discount on remaining rights of payments, as it is the profit for buyer. Some states have other requirements as well and you might have to get professional assessment by a third party regarding your situation. It is actually a good idea, as it will reinforce whether you should be selling or not.
After you have accepted an offer, some paperwork will have to be filled out and you will have to go through proper steps in order to return it and start the legal process. It can take about two months, for the entire process of selling the annuity to complete. However, in some of the cases, you might be able to get advance from buyer when you are waiting.
Benefits of Annuities:
Annuities have different advantages. These include:
- They give you an opportunity to grow the money tax deferred, you can enjoy all the gains and they help you to make more efficient investments.
- They are mostly viewed as quite stable and safe investments. Mostly they are backed by the insurance companies. The recipient does not have to worry about receiving the payouts.
- Annuities give you an opportunity to earn money for the rest of your life. It is quite important in giving some stability in case a person lives longer than they prepare for when amassing savings from retirement. It’s worth it to have a backup plan just in case you fortunately live longer than an average person.
- The risk is also eliminated and it is a big benefit. Insurance company takes the risk. You do have to worry about any risk factor when projecting how much money you will be receiving. This simplifies the things, and this is exactly why annuities are very popular with people who are nearing retirement.
You will be going in front of the judge, after the papers for sale are given in court. At this time you will need to explain the reason of behind the sale and why you need that money. You will be required to convince the judge that by selling you are not putting your family and yourself in financial risk.
Once the judge approves the sale, transfer can take place. Insurance company which is taking care of the process will receive a notice at this point, that they should start making payments to new owner of the policy. You will receive full payment from buyer at this point.
In case you sold only a part of the payments, you will have the right of selling the rest of it in future if you decide to. However, you will have to start this process from scratch again.