Looking For a Buyer

How you came to be in possession of an annuity doesn’t really matter. The annuity whether it was purchased by you or purchased on your behalf, it was put into place to ensure your financial security in the future. The fact remains you have it and now you think you want to sell it for what ever the reasons. You need to educate yourself, so you have the information you need to make a wise decision. So keep in mind:

Laws have been enacted to restrict the sale of structure settlements and annuities by about two-thirds of the states in the United States.

Federal restricts the sale of tax-free structured settlements to a third party.

To discourage the sale of structure settlements and annuities, some insurance companies will not hand over or transfer annuities to third parties.

Depending on where you live and the terms of your annuity contract, there is a chance you will not be able to sell your annuity without court intervention. If you can sell your annuity you might want to ask yourself one question, “Why should they buy from you?” When a company wants to buy your annuity or structured settlement it is because they are going to make a profit from the purchase. Their profit comes from the payments you would have received. You will be selling your annuity at a loss. How much of the total value of the annuity you lose by selling it will be up to you.

When you are looking for a buyer, you will need to talk to several different companies in order to keep the most of your money. You are looking to receive the highest payoff you can get for your annuity or structured settlement.

You also want to make sure the company buying your annuity is deep-rooted, reputable and well-funded company. You will want to avoid companies who will secure your annuity and disappear before they ever pay you for the buy out. You will want to research the company to find out any history of their track record.

You will probably have to go to court in order to get the judge’s approval to the sale of your annuity or structured settlement. You may want to consult with an attorney before signing any documents regarding the sale of your annuity or structured settlement. Just remember the deal is not written in stone until you sign the papers, so if there is any aspect you are unhappy with you will need to make it known before you sign the papers not after.

Here are some tips you might want to remember when you are talking to buyers of your annuity.