How Selling Your Annuity Works

After you decide how much money you require, you should begin the process of selling all or some of your annuity.

step6

Assemble the Necessary Paperwork to Sell Your Annuity Quickly
You should gather any paperwork related to your annuity. Your buyer can also obtain copies of any information that you may not have at the moment.

Get an Estimate On The Worth Of Your Annuity
After deciding on the amount of money you need, contact an annuity buyer to get an estimate of the worth of your annuity. If you are just selling a portion of it, you can find out how many payments you need to sell in order to get the dollar amount you need. Your buyer can also help you sort out any confusion you have with the due dates of your annuity payments or the amount you receive.

step1
step3

Evaluate and (if you are satisfied) Accept the Offer
Carefully look at the offer put forward by the buyer. If you are not satisfied, you can ask them for a revised quote on selling less or more of your annuity payments. But if you are satisfied, notify your buyer about your acceptance.

Sign and Return the Agreement To Buy Your Annuity
You will have to review the documents sent by the buyer carefully, sign them and return them to the buyer.

 

step4
step5a

Buyer of Annuity Obtains Court Order
This next step is completely dealt by the buyer. Depending on the state that you live in, the buyer of your annuity will correspond with the state court to get an order from the judge. The judge will then reassign the legal right of those annuity payments you wanted to sell from you to the buyer.

Buyer Sends You a Wire / Check
After the judge approves of the court order, it is sent to the insurance company that previously issued your annuity. The insurance company is directed to send the payments to the buyer instead of you (as per the offer). As soon as the issuer of the annuity confirms that they’ve received the order, the buyer will send you your lump sum. They can do this either through a check or via a wire transfer.

After your annuity sale is complete, you can use the lump sum on anything that you want.

step2a
step6

Assemble the Necessary Paperwork to Sell Your Annuity Quickly
You should gather any paperwork related to your annuity. Your buyer can also obtain copies of any information that you may not have at the moment.

step1

Get an Estimate On The Worth Of Your Annuity
After deciding on the amount of money you need, contact an annuity buyer to get an estimate of the worth of your annuity. If you are just selling a portion of it, you can find out how many payments you need to sell in order to get the dollar amount you need. Your buyer can also help you sort out any confusion you have with the due dates of your annuity payments or the amount you receive.

step3

Evaluate and (if you are satisfied) Accept the Offer
Carefully look at the offer put forward by the buyer. If you are not satisfied, you can ask them for a revised quote on selling less or more of your annuity payments. But if you are satisfied, notify your buyer about your acceptance.

step4

Sign and Return the Agreement To Buy Your Annuity
You will have to review the documents sent by the buyer carefully, sign them and return them to the buyer.

step5a

Buyer of Annuity Obtains Court Order
This next step is completely dealt by the buyer. Depending on the state that you live in, the buyer of your annuity will correspond with the state court to get an order from the judge. The judge will then reassign the legal right of those annuity payments you wanted to sell from you to the buyer.

step2a

Buyer Sends You a Wire / Check
After the judge approves of the court order, it is sent to the insurance company that previously issued your annuity. The insurance company is directed to send the payments to the buyer instead of you (as per the offer). As soon as the issuer of the annuity confirms that they’ve received the order, the buyer will send you your lump sum. They can do this either through a check or via a wire transfer.

After your annuity sale is complete, you can use the lump sum on anything that you want.

Who will buy my annuity for the most cash?

You may have been receiving annuity for a long period of time due to different reasons. Whether it is because of you were named the beneficiary of a deceased person or you purchased the annuity yourself, you have options. If you might be feeling like you aren’t making the most of your annuity and you might prefer a lump sum right now. In this case, you might want to sell your annuity.

Reasons to sell your annuity

house1

Investing In a Home of Your Own or an Investment Property
Real estate is not cheap place and to get that place of your dreams you will have to spend money. Waiting for 15 years for your annuity to add up does not seem like a reasonable option. By selling your annuity, you’ll be able to use the lump sum to make a down-payment of your new house. You can even use your annuity to revamp your current house.

education1

Funding a College Education For You or For Your Children
College tuition is getting more and more expensive, and you might have been hearing stories about how people spend decades after college getting rid of their college debt. A lump sum will ensure that the life after college will not be swamped with debts.

debt-temp

Getting rid of your debt to lower your stress
You can use this lump sum to pay off credit card debts, student loans or any other debts that you’ve been delaying.

growth

Starting / investing in a business or your own business
Use your lump sum to invest in a business which you believe in. The sum could work as the necessary factor that jumpstarts your venture and gives it that extra push. You can use it to grow your existing business as well.

medical

Covering Overdue Medical Expenses
Medical treatments can cost a lot and sometimes, your health insurance might not cover up the entire treatment. Especially for medical treatments that last a long period of time, where the hospital requires you to regularly deposit money, a lump sum might be extremely beneficial.

car

Purchase a much needed vehicle for your family
Everything becomes simpler once you can pay for it straight up instead of paying it over the course of several years while watching the interests surge every time you pay. Use the lump of sum from your annuity to buy yourself or your family a new vehicle. This way it is stress free and there is no fussing about car loans several years down the road.

How can I sell my annuity

Review our recommendations for selling your annuity payments the right way. Once you pick the right company and accept their offer, you will need to sign the agreement to sell your annuity. The experts you work with will then handle the entire process and you will receive your lump sum by wire or check.

Here are five easy ways to sell annuity payments without using a financial advisor and going straight to the source for the most cash right now while understanding every piece of risk and benefit before you agree.

  1. Understanding Where You Are Right Now and Where You Want To Go: Most people hate to answer this question, but you MUST know it before you make ANY financial decision when it comes to selling your annuity for cash. Check your financial accounts, and that means ALL of them. Do not include your investment accounts, only savings and checking. The financial accounts that if you had to withdrawal all of your cash out of the accounts today you could. This is your REAL number of where you are financially. If this number is LESS than your living expenses for three months, selling your annuity, or a portion of it, might be a very good idea. Especially if you are feeling financial stress in your life.
  2. Are you stressed and do you need income immediately: This goes hand-in-hand with the first question which was asked. Maybe you have come up against high medical bills, unexpected home repairs, or you’ve been out of work for a longer period than you expected. Life tends to throw curve balls at you from time to time, but you should focus on being thankful you have the annuity to help you through this difficult period of your life. This way of looking at things can help reduce your stress and you can better focus on your future.
  3. Do you have enough assets to get you through retirement: Do you have solid equity in your home? Do you have a solid investment portfolio? Do you have other assets of solid worth? This isn’t about just getting through the current financial crisis, this is also about protecting your financial future as well. If you don’t have any assets of worth and you have little to no equity in your home, you might want to rethink your strategy. Instead of selling your entire annuity, you might only want to sell a small portion of your annuity instead.

When it comes to getting the most out of your annuity, DRB Capital has experts that can walk you through each step to get the money you need right now, while protecting your long-term finances. Also, the person that is assigned to your case stays with you until you get approval. That means you won't be handled off to a different person with each step. We know, there is nothing more frustrating than having to repeat yourself all over again to a new person over your account. You will never have that happen to you with DRB Capital.

Did you know you can sell your pension for cash? Take a deep breath and know that our experts are there when you cry out "Sell My Annuity Payment!"

If you have an Allstate structured settlement, our staff is HIGHLY knowledgable on how to get the most from structured settlement.

What You Should Know - Top Questions Answered

"What happens to my annuity or structured settlement when I die?"
There are many annuities (which is what a structured settlement is) end completely upon the death of the annuity holder. Often, this is in the fine print and if you are receiving the settlement based on a personal injury. If this injury has affected your long-time health, your surviving spouse, children or relatives may not receive the total payments.

If you had good representation, your annuity should be protected in the event of your death to allow the payments to continue and be given to your stated beneficiaries. If you are unsure, you can check your policy and look for the phrase "guarantee period" or "period certain."

Another phrase to look for is a "communication rider." This refers that if the policy holder should die, a discounted lump sum will be paid to the policy holder's beneficiaries. This would be in place of the payments continuing as they have in the past. The main reason for this rider is for tax reasons.

The last phrase you should look for is "joint and survivor." This mean the policy is shared between the holder and beneficiaries. Should the holder of the policy die, the payments will continue to the beneficiaries as listed.

How To Compare Annuities

Step One: Identify the Characteristics of the Annuity

The first major distinction between annuities is that of either VARIABLE or FIXED.

Variable Annuity

A variable annuity is an INVESTMENT product “wrapped” in the guarantees of an insurance policy. Only those persons who are licensed to sell mutual funds AND life insurance can sell them. An important distinction between a variable annuity and a fixed annuity is that in the variable annuity the purchaser carries all the risk for the increase in the cash value of the product. The cash value is invested in mutual funds. The carrier will never guarantee an increase in the cash value of this product, and in fact, the cash value will fluctuate (and may lose value) due to market fluctuations

REAL LIFE EXAMPLE

Because Jason was a both a licensed securities broker and a licensed life insurance agent he was able to sell Margret her variable annuity.

Fixed Annuity

A fixed annuity is considered a pure INSURANCE product and can be sold by any properly licensed life insurance agent. It is considered an insurance product because the insurer carries all the risk for the increase in the cash value of the product. In other words, the increase in the cash value will be via periodic interest payments guaranteed by the insurance carrier (even if the guarantee is a range). The cash value will not lose money due to market changes only because the cash is never invested in the market. (The cash value may decrease due to fees or withdrawals if the fees and withdrawals exceed the guaranteed growth – but more on that later.)

REAL LIFE EXAMPLE

Because Michael was a licensed insurance agent, he was able to sell Chris and Michelle their fixed annuity. He could not have sold them a variable annuity because he was not licensed to sell mutual funds, nor could he have sold Margret her variable annuity. Either he or Jason could have sold Mark the immediate annuity he was considering.

Immediate vs Deferred

The second significant distinction between annuities is that of either IMMEDIATE or DEFERRED. These terms refer to when income from the annuity starts.

IMMEDIATE

An immediate annuity must begin income payouts after 30 days (if a monthly payout is requested) or after one (1) year (if an annual lump sum is requested).

DEFERRED

A deferred annuity allows payouts only after a specified period. After the specified period has passed the annuity owner can request income at any time.

Single Premium vs. Flexible Premium

The third major distinction between annuities is that of either SINGLE PREMIUM or FLEXIBLE PREMIUM. These terms refer to how money can be put into the annuity.

SINGLE PREMIUM

The annuity is purchased with one lump sum of money; no other amounts of money are accepted.

FLEXIBLE PREMIUM

The annuity is purchased with an initial lump sum of money (usually subject to a minimum); other sums of money (sometimes subject to a minimum) may be added to the annuity on either a regular or irregular schedule.

All annuities are one or the other of these three characteristics.

WHY THIS INFORMATION IS IMPORTANT TO YOU

This information acts as kind of a “road map” for you so you can “locate” exactly what type of annuity you are looking at or for. Do you need all of this info to compare annuities? Not really. But you can use this info to rule out annuities that don’t meet your needs. For instance, if you know you will be adding money to the annuity as time goes on you will need a flexible premium annuity and you can just disregard those that only accept a single premium. Similarly, if you know you do not want to take income right away, you will be overlooking immediate annuities.

REAL LIFE EXAMPLE – CHRIS AND MICHELLE

Chris and Michelle bought a Fixed Index Annuity. From the three listed criteria above, we immediately know this is a fixed deferred annuity, which may be either single premium or flexible (this info is not given in the case history). While this provides us with a little bit of info about the annuity (the insurance carrier shoulders the risk for the cash-value appreciation, and Chris and Michelle have a choice as to when they want to start income), it really doesn’t give us enough information to perform any meaningful comparison between it and another annuity.

NOTE: The word Index in the annuity Chris and Michelle bought refers solely to the way the interest is credited to the cash value of their annuity is going to be calculated. Ignore that word for now; the importance of how the cash value will grow will be discussed in Section C.

REAL LIFE EXAMPLE - MARGRET

Margret bought a deferred variable annuity also non-specific for premium. Again, not enough information to actually perform any meaningful comparison between it and another annuity.

REAL LIFE EXAMPLE – MARK

Mark was contemplating (but did not purchase) a fixed, immediate, single-premium annuity. In the annuity industry, this is usually called an SPIA (Single-Premium Immediate Annuity – pronounced spee-uh).