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How to Sell an Annuity

Were you awarded a structured settlement for a personal injury or worker’s compensation claim? Have you seen advertisements stating that you can cash in on your settlement and get your money in one large lump sum? If you have seen these advertisements claiming that you can get your money that is rightfully owed to you without having to wait on those regular payment installments, then you might be curious about exactly how you sell your annuity.

However, selling your annuity is not always possible and not always the smartest decision you can make. If you want to sell your annuity, you first need to decide whether or not you can legally and then whether or not it is actually beneficial to you to do so. There are many pros and cons to a structured settlement as well as to selling yours. There are also some restrictions on selling structured settlements so you want to get all the facts on this as well.

Your structured settlement should work for you. The best time to make any changes or disputes with it is before you sign the final agreements on it. Talk with your attorney if you are not happy with the way your settlement plans are written out. Work out all the details before you agree and you won’t have to be concerned with selling or not selling your annuities later on.

Reasons not to sell are because of the tax breaks you get on a structured settlement and because for some people this is their sole means of income due to an injury, etc. Most companies that offer to buy your annuity are trying to make a profit off of you so you might lose out in the deal and there are almost always high fees involved. You need to get all the facts first and be sure it is really going to benefit you to sell.

There are also laws in many states that make it illegal to sell your structured settlement so you need to get legal advice first to make sure it is okay for you to sell. Then you want legal and financial advice to make sure it is in your best interest to sell. Next, you want to consider the tax consequences of selling your annuity. Then when you are certain that this is something you will want to do, you need to shop around for different offers. You want to be sure you are working with an established and reputable buyer.