Can I sell my annuity payments for cash?


Although in the near past annuity owners had to keep their annuities for life, now they have the right to sell all or part of their annuity payments in return for cash. This change happened in 1988 when the Securities and Exchange Commission (SEC) lifted the ban on selling annuities.

Advantages of Selling Annuity Payments

  • Annuity owners can reap considerable benefits by selling all or part of their annuities for cash, especially if they are in urgent need of a lump sum.
  • Selling your annuity payments can provide liquidity in periods of financial crisis, or if you need the money to purchase a home, to invest or to improve your standard of living.
  • Knowing that you have the choice of selling payments from your annuity, gives you more freedom to act, especially if you do not need the annuity any longer, for example, when you have already provided yourself and your dependents with enough protection for the future.

However, don't forget that by selling your annuity payments, you will lose a very precious source of lifetime income that you might need when you retire.

Four Tips for Finding an Annuity Payment Buyer

  • Do some preliminary research - the Internet and search engines, in particular, have made it very easy to obtain information about anything. Finding out what other people's opinions of the respective buyer are, can help you prepare for meeting them well in advance.
  • Compare offers from more than two buyers and do not rush things. There are plenty of options for selling annuity payments so do your research carefully, get informed and make your choice with utmost care.
  • Getting first-hand advice from friends or relatives who have gone through the same process: they will be able to recommend buyers of annuity payments, or advise you as to who to avoid.

Finally, ask yourself the question: "How badly do I really need the money?" Bear in mind that what you are planning to sell, is a guaranteed lifetime income that you might really need when you retire.

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