Annuities refer to insurance products that pay out income, and which can also be used as a retirement savings plan. They are a common investment choice for people looking for a steady source of income when they retire. 

An annuity requires an investor to make some investment, after which the annuity will make payments to the investor on a future date or series of future dates. The future payments to the investor can be on a monthly, quarterly, or annually basis; lump sum payments are also applicable. Moreover, the investor may opt to receive the payments for the rest of his/her life, or for a predetermined number of years. As an investor, the value of your payout depends on whether you opted for a fixed or variable annuity. In this regard, a fixed annuity means you will receive guaranteed but fixed amounts of money, while a variable annuity means that your payout depends on the performance of the investments under which your annuity was placed. 

There are two main types of annuities:

• Immediate 

• Deferred

An immediate annuity allows you to receive payouts after making your first investment, while a deferred annuity allows you to receive payouts some time later after your money has been invested. Within the two categories, an annuity can be either fixed or variable. 

Selling Options 

There are two main options for selling annuity payments:

• Partial 

• Entirety

Partial Sale

A partial sale is where the investor chooses to sell a portion of his/her annuity. In case you to sell a part of your annuity, you get two options. The first one requires you to sell a period of your annuity payments, during which you will receive no payouts. However, your payouts will resume once the period is over. For instance, if you have annuity payments spread out over 20 years, you can sell payments for the 5-year period between the 10th and the 15th year. When the period is over, your recurring payments will resume. 

The other option is where you sell a portion of your payments. With this option, you will still receive your recurring payouts, only that you will receive only a piece of what they used to be. For instance, if you used to receive $5000 per month, you may receive $2000 per month after the sale. 

Entirety

Entirety sale is where the investor decides to clear out his/her entire investment. In case you choose to sell your entire investment, you will no longer receive your scheduled payments. On the other hand, you will receive a lump sum of cash from the sale. 

How to Sell Your Annuity

The process of selling your annuity (structured settlement payment) is quite straight-forward; it starts with making a decision to sell and scheduling a court date. As a matter of fact, structured settlement companies complete thousands of transactions each month. However, the speed with which the sale occurs largely depends on the efficiency of the structured settlement company involved. To sell your annuity, you need to contact a good structured settlement expert like Settle4Cash. You will then have to provide the company with details of your annuity; be sure to inform them about your financial situation so that they can assist in choosing the best selling option. Remember, there are two main selling options – partial and entirety. 

After agreeing on a selling option, the structured settlement company will do some paperwork, whereby you will be required to sign a copy of the annuity agreement and contract, authorizing the company to complete the sale. The documents will then be sent to your insurance company, where changes will be processed. Once all paperwork has been completed, the structured settlement company will send you the money through your preferred payment method. 

Reasons for Selling Annuity Payments 

There is a wide variety of reasons as to why one would want to sell their annuity. For instance, one could be in need of some cash to purchase or repair a home. Then again, one could have spotted a better investment opportunity, for instance, some undervalued shares which he/she projects will perform much better in future. If the person does not have enough funds to buy the shares, he/she may sell his/her annuity and use the cash obtained to make the purchase. Other reasons for selling may include:

• Financing a loan

• Starting a business

• Paying for college

• Sustaining injury