3 Ways to Sell Annuity Payments

Posted by Rob A on September 8th, 2019

When you're faced with a serious need for funds, selling your annuity can be a great solution. You can use the money to take back control of your finances. Whether it's for a new car, house, or your college tuition, cashing out is better than putting your life on hold.

What Are My Options to Sell My Annuity Payments Quick?

Depending on the reason, you may need to get a specific amount of cash for a particular time. You have several options for buying out. Either one of them can suit your unique financial needs. If you're new to this, here's a brief rundown about the 3 ways to do it.

Partial

Partial buyouts involve selling payments of your annuity for a temporary period in exchange for a lump sum of money. This option makes more sense if you need money to cover a specific need.

For example, you can sell the first 3 years of your 10-year contract to get extra funds for your dream house. You'll get the checks for the payments for those 3 years after the sale.

It's also possible to do partial buyouts more than once if you find yourself needing cash again.

Entirety

An entirety or straight sale is the most common option when selling an annuity. It involves selling the entire full-term contract. Once this happens, you'll empty all of your investments and get them as cash. If you buy out your entire annuity, you'll get a higher dollar amount compared to selling it partially.

People often do this because they'd like to re-allocate their funds to other investments. If you want to use the money for better opportunities, then this is the best option for you.

Lump-Sum

A lump-sum buyout is very similar to a partial one, but it's more specific. For example, if you need , 000 for your house's down payment, you can sell that set amount instead of a certain number of payments. After all, they might not add up to what you need.

Before you take the plunge and buyout, it's best to consult your lawyers and financial advisers first. They'll answer and explain all of your questions like, "Can I sell my annuity payments quick?" or "How much will I get?" If you're still on the fence about it, they'll also help you weigh all of its pros and cons.