How To Sell Annuity Payments

If you are getting payments from a lawsuit, lottery, retirement, or any other long term settlement, you can sell annuity payments to investors. When you need the cash now, rather than waiting for the checks to slowly roll in, this is your best option. It doesn't happen right away, but your small checks will become a ton of cash in your bank account. Read on to learn how to sell annuity payments.

In a nutshell, selling annuity payments works by signing over your payments to an investment company in return for a large lump sum cash payment. They will withhold a fee, which varies on the length of the payments, the total sum, and how much of it you are cashing out. The fees usually range from 10-30%. After you sell your annuity to the investment company you will be free to do as you wish with your money. Selling annuities involves finding the deciding what you're selling, finding the right buyer, and getting the courts approval before you get your cash.

When you sell an annuity, it isn't an all or nothing deal. You have the option to only sell a portion of the payments, if you wish. This option is best when you have an investment in front of you that can make you much more money than the annuity payments do, or when you are planning on making a large purchase such as a home or car. A major advantage of selling less than the total amount is that it's much easier to get the court's approval for the sale (more on this below).

Please do not sell your annuity payments to the first buyer you find!  If you do, you're asking for trouble. Each company has its own terms and fees, and these terms can vary significantly from company to company while still falling within the bounds of the law.  Do your research!

When researching investors for to sell your annuity payments to, dig around the web to see what everyone else is saying about them.  The home page of most annuity buyers will have a contact form for you to fill out to determine the value of your annuity.  Only fill this form out when you are ready to be bombed with phone calls from investment companies.  Some of the websites you come across won't be investment companies at all, they are companies that get info on people who are looking to sell their annuity and they will sell your contact information as a "lead."  It's an honest business that these people do, but be prepared for the telemarketer blitz that's coming your way.

A legitimate investment company will have testimonials and experience listed on their front page.  They will also be much more professional in their dealings with you.

You cannot sell annuity payments in all states. In the states that you can, you must go before a judge for approval of the terms of sale. This may seem like a pain in the ass and you want your money now, but this step is to protect you from unscrupulous investors. Most judges will be able to spot a shady deal and strike it down. If your terms are struck down, it is normally the investment companies responsibility and expense to draft a new one to present again.  You can also get a short term personal loan to cover the legal expense or do it with some other method of getting fast cash.

With this being said, avoid any investor who tells you that they can give you money now without having to deal with the courts. This is the telltale sign that you are about to be scammed.