If you have an annuity and you need to tap more of the cash in it what can you do? In life we never know what’s just around the corner. There could an unexpected medical expense or just some circumstance that arises that the need for cash is immediate.
The only thing you have of value is your annuity. Its steady monthly income has been a comfort to you and something you can really count on. But now things need to change. It doesn’t have to be a medical or negative occurrence. What if you just want to buy another home or start a new business? Having that cash today would really help.
Before you sell your annuity you should understand there are many different kinds. Immediate annuities are paid for upfront with a single premium payment that is paid initially with a lump sum payment. It provides a guaranteed income immediately and is usually good for people close to retirement who want guaranteed payments.
Also lottery annuities are what people who win the lottery receive instead of a lump sum payment. The payout is spread over a number of years for the benefit of the winner and also the state lottery.
Deferred annuities are when payments are delayed until they build up value and then they are paid out in a number of ways.
Before you can sell your annuity it has to be determined if the annuity is even able to be sold. In some states, you cannot sell your annuity under any circumstances. If you should sell it then the agreement between the parties is illegal. Annuities can be sold and states have tough laws governing their sale. In some instances interested parties needed to go to court to get approval for the sale.
When you sell your annuity you need to establish the total value. When you find a good company to buy your annuity you have to remember they want to make a profit and will give you the lowest price possible. Also the money you receive will be taxable so an accurate determination is necessary. So do your home work and seek out a company that will give you a fair price.
A good source, to find a company to purchase your annuity, is online. If you search online you will find many companies willing to purchase your annuity. Remember these quotes could often times be estimates. Also there could be additional fees added on later. So use these quotes as a way to weed out companies with low quotes and high fees. You could also use these quotes to get an even better deal when you compare one to another.
Check with the Better Business Bureau for any consumer complaints filed. Then you will know if the company is honest. They should also be able to provide you with a list of companies that you should check. Finally, look into how the company will pay you. Check what facilities they have for payment and what the total fees will be. And do not pay any fees upfront.
As with all thing involving complicated financial and legal decisions it would be prudent to seek informed and professional help before committing to any decisions.