Selling a structured settlement annuity is often preferred over keeping established annuity payments in place. While the annuity payments may provide you with a steady stream of income, you may have thoughtful plans for the use of the lump sum amount of your annuity. Some people, for example, will pay off burdensome medical bills or other costly debt. Some may purchase a new house, pay for a child’s college education or move forward with other expensive goals. After you have decided that selling your structured settlement annuity is the right move for you and your family, you may be ready to finalize your annuity sale quickly. By following a few steps, you can most easily sell your annuity without delay.
Work With a Broker
Annuity brokers are well-trained, licensed professionals, and their activities are typically state-regulated. You may have worked with an annuity broker to set up your annuity initially, and you may decide to reach out to that same broker when selling the annuity. If you need to find a new broker to work with, consider asking friends and family members for a recommendation as a first step. Otherwise, you can use the Internet to thoroughly research the options. The best brokers to work with are those who do not specifically work with only a handful of buyers, and they also have experience working with a wide range of annuity types. The more experienced and the better trained your broker is, the more likely you are to get a great deal when selling your annuity.
Get Your Documentation in Order
While your broker shops around to find a great deal when selling your structured settlement annuity, you can start pulling together the required documentation. Each buyer may require slightly different documents, but most will need to see the most recent check stubs for the annuity payments you have been receiving. They also typically want to see your tax returns if you have received the payments for more than a year. The legal documentation that established the structured settlement and that set up the annuity are often required. If you live in a state that requires the sale of an annuity to be approved by the court, approval documentation may also be required. By pulling together this documentation up-front, you can quickly move forward with the sales process once a buyer is located.
Make a Thoughtful, Informed Decision
Your annuity broker typically will provide you with several different options to consider. Your first priority may be to find a buyer that offers the best price with the lowest fees. The net compensation should be calculated for each offer. In addition to reviewing each offer, you should review the credentials for each buyer. Your buyer should be licensed with your state and should ideally have a high rating with the Better Business Bureau. While you may be in a hurry to expedite the annuity sale, completing this due diligence will ensure that you make the best decision.
Selling your structured settlement annuity for a lump sum amount can result in much-needed cash being deposited into your bank account. There typically is no requirement for how the funds can be used, so it is up to your discretion to determine the most intelligent way to spend or invest the money. Some people, however, find that the annuity sales process can stretch on for weeks or longer, and this can result in a great deal of frustration. While this may be the experience some people have, by following these steps, you can drastically decrease the amount of time it takes you to sell your structured settlement annuity.