Annuity is something owned. It is mainly related to an agreement stating that there will be a regular issuance of payment to those (applicants) who invest a good a sum of money through one of the following means: mandatory company policy, insurance and a structured lottery payout and money drawn from legal settlements.
And since you are the owner of your annuity, you can opt to sell it like any piece of property that you currently have in your name. Actually, the term ‘selling’ only requires that the one selling his or her annuity allows the transfer of its ownership to any future buyer.
One question will immediately surface: Why sell? And here are a number of valid reasons why most owners opt to sell annuity and get the lump sum money in exchange for the convenience and security of regularly receiving monthly compensation: Say for example, you’ve just retired and would want to complete payment on your property, like a house or a car, or pay off a large debt. The only plausible way you could pay for this in full would be (you guessed it) through selling your annuity or otherwise coined immediate annuity or an annuity contract.
The challenge in selling ones annuity lie in the fact that one needs to find a reliable company to sell this on their behalf. The owner can also request for a certain company to grant him or her that lump sum but with the risk of paying a much larger transaction or surrender fee compared with transferring its ownership and paying for a third party to do your business for you.
There are a lot of websites that can assist in providing you with dependable leads in the selling of your annuity. These companies are experienced and can make things happen for you at a faster rate. Some companies will send you quotes and a payment breakdown or scheme that fits the particular status of your annuity (for example, if you have not completely fulfilled payment of your annuity, the company may want to know how much would be your balance and how much they still need to pay off before acquiring the full benefits of the contract). In any case, it’s always a good thing to ask around and shop for the better deals concerning the matter.
For certain legal clauses, it is best to consult and acquire the services of a lawyer to ensure that the proper procedures on the sale and transfer of your annuity are being followed; and more importantly, to protect your investment since this will definitely involve a large amount of money!
Once you have reviewed the necessary documents with your lawyer, and only after you are certain that this is what you want to do, move on to the next obvious step and sell, sell, sell!
Corey Palmer is a financial adviser specializing in annuities.
Selling My Annunity