What You Ought to Know About Selling or Buying Structured Settlement Annuities

Selling structured settlement annuities can save you from financial hurdles. Many Americans are primarily selling their annuities to buy or repair a home, raise capital for a business venture, fund your child’s college education, pay debt, or investing in a retirement fund.

There are three main options in selling or buying structured settlement annuities. These are partial, entirety and lump sum.

If you choose to sell a part of your annuity of structured settlement, you will still receive regular profit from the balance of your investment without losing tax benefits. You can still take advantage of the tax benefits, and even extend them to your children in case you pass away before you collect the payments.

Meanwhile, if you choose to sell your entire structured settlement for the whole term of the contract, there will be no chance for you to receive regular payments in the future because you have already emptied out your investments. The main advantage of this is that you will have a lump sum payment that is accessible for you to invest.

Another option is to sell the annuity through lump sum that will provide you with large cash but you are still guaranteed to have a steady flow of income from your structured settlement for the contract’s term. You can also carry the same tax benefits.

The process of selling your annuities begins when you are already decided that you want to sell. From there, you can find companies that are buying annuities and you will end up with the cash in your hands. With the popularity of this type of scheme, more and more companies are offering to buy annuities. Hence, it is important that you find someone that can process your application fast.

The first step to do is to decide that you want to sell. If you need money for valid reasons, then don’t hesitate to begin the process. Call a company today so that you can be guided through all the steps in selling your structured settlement payments. It is best to find a company that offers free quotes in minutes. There are also companies that provide you cash advance. Once you sign up, the company may provide you with a cash advance so that you can start using a portion of your money. After this, you can set a court date. You need to submit all the paperwork, and then submit all the reasons for selling payments before a court judge before you can get your money. When the court accepts the transfer, you can receive your money.

According to the guys from Cash For Settlement Payment Service, the amount of money that you will receive from selling your structured annuities depends on several factors such as the company with whom you choose to do business. The cash-out will also depend on how many payments that you are willing to sell and the time that those payments will be paid. Bear in mind that the more payments you sell, the more money you will receive.

You also need to take note that you will not be able to receive the full price of your annuity. You must go into this process with clear understanding that selling or buying structured settlement annuities is a business deal. Those that are buying settlements want to make income from the purchase. Hence, if you have a $150,000 annuity, expect to receive less than that.

Basically, it can be low as 50% and in most instances the offer will come at 60% to 80% of the original amount. The sales percentage is largely dependent on market conditions, specifically institutional interest rates established by the Federal Reserve, and these conditions usually change. Hence, the discounted purchase amount is the price that you will pay for the chance to get money earlier than you are entitled to receive the cash.


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