Though at one time receiving scheduled payments from an annuity may have pulled you
out of a financial slump, don’t be surprised if your monetary needs have changed since
then. Perhaps you’re finally back on your feet and a lump sum of money could better suit
your present situation. Perhaps you have costly home repairs that need to be done
sooner rather than later and you need cash now. If you’ve ever considered getting cash
for your annuity, take the time to research if it’s possible to sell it, what the cash value of
it is, and what to expect working with a company during a buyout process.
Why Get Cash for My Annuity?
During your lifetime, you’ve undoubtedly experienced the ebb and flow of financial
stability. Most people muddle through a time when money is tight, but if you have an
annuity or structured settlement, you have an ace up your sleeve. Instead of being
burdened student loan debt, medical bills, or high interest credit card debts for an
extended period of time, you can get cash for your annuity in a consolidated lump sum.
What’s The Value Of My Annuity?
If you need quick cash, and you’ve decided shedding an annuity is the best way to get it,
you have two options: incur the penalties for early withdrawal or sell it. Should you
choose to pull your money directly from the annuity, the company who sold it to you can
penalize you five to 25 percent of how much you withdraw. Moreover, if you’re under
59½, you may be subjected to an additional tax from the IRS to the tune of 10 percent.
Many individuals choose to sell their annuity in order to get the most cash back. Before
selling yours, it’s important to determine how much it’s worth. There are several factors
that account for the difference between the amount you would receive from future
payments and an upfront sum of cash. The percentage at which you sell your annuity
are influenced by inflation, company’s cut, and processing fees. Remember an annuity
buyout is a business transaction.
Cash for Annuity Success Stories
Every day, people like you sell their annuities for cash to better their financial situations.
These individuals helped themselves by selling their annuities:
Noah inherited an annuity from his grandmother when she passed away. He was to
receive $2000 per month for the next 15 years.
Fresh out of law school and a baby on the way, Noah had the means to pay off school loans
now instead of 30 years from now. After doing his homework to determine the value of the annuity,
Noah contacted a firm for a partial purchase in exchange for a lump sum. By getting cash for his annuity, Noah was able to pay for school and keep $1000 per month to put towards raising the baby.
Earlier in life, Beth had taken a large chunk from her savings and put it into an annuity
for retirement. She suddenly fell ill and doctors had a difficult time diagnosing her. In just
a few months, she had undergone extensive blood work, MRIs and a variety of other
medical tests—each one seemed more elaborate and expensive than the last. Though
Beth had insurance, not all the tests were covered under her plan. When the amount
breached five figures, instead of being in debt, Beth decided the best option would be to
get cash for her annuity to cover expenses.