Jan 262010
Are you receiving annuity payments from a deceased spouse, or death benefit from a distant relative? Are you also being hit up with big bills and piles of debt that are hard to deal with? If so there is an option for you.
In this article I am going to be discussing the idea to sell your annuity payments. In this post I'm going to give you some simple tips and things you should look out for in order to sell annuity payments for a lump sum payment.
5 Tips To Selling Your Annuity Payments
- What are your current payments like? The first thing you need to decide is it worth selling your payments? If you have a pile of debt and your facing bankruptcy you might want to consider this as an option. However, if you’re doing it just to get the cash I recommend you don't because you will lose a portion of the payments to the company that buys it from you.
- How much do you want to sell? There are 3 different ways to sell your annuity payments. First, you could do a full sale were you sell the entire annuity payments completely. Second, you could do a partial sale were you sell a certain number of payments for a lump sum, and finally there is a split sale were you sell half of your annuity payments.
- What's the discount rate? Any company that is going to buy your payments is not going to want to lose money on the deal. Most companies will give you a discount offer of 8% to 14% your lump sum payment. Any discount higher than 14% is a rip off.
- Who are you selling to? Knowing who will be buying you annuity is a must. There are better known companies like J.G. Wentworth, to companies that just got into the business. The important things here are that you research and evaluate each company to make sure they’re legit.
- What are the terms of service? Finally, what are the terms of service? Buying and selling annuities is a much unregulated industry. This leaves a lot of opportunity open for people to take advantage of you. To protect against getting ripped off, have a lawyer review the terms of service and make sure the deal is legit. It's better to be safe than sorry.
Follow the tips I've given you here and you'll be just fine.
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