When selling an annuity, you must take into consideration how the process works and what it entails. You will want to take certain steps to give you the best outcome. You don’t want to get blindsided by an unexpected turn of events. You don’t want to become impatient and start cutting corners either. Consider these tips before you sell your annuity to ensure you are ready and aware of what to expect.
You have a reason for selling your annuity, but you also want to make sure it makes good sense to sell the annuity. You maybe planning on reinvesting the money from the annuity or you might need it to get you through a financial crisis; whatever the reason is the important question is “have you made plans?”
Once the money has been used you will need to have a plan of action. Farther down the road there could be another financial crisis and of course your “golden years” are fast approaching. You need to have a plan, so just like the Boy Scouts, you will “Be Prepared”.
As you are looking for a company to buy your annuity, just remember not all companies are alike. There are good ones and there are the bad ones. You will want to make sure you avoid the bad ones. You might even run across some companies, which are unscrupulous and dishonest. If you can trust your instincts, trust them. If not, take someone with you whose instincts you do trust.
If something seems to be wrong, chances are it is wrong. Don’t be afraid of getting another quote and comparing companies against each other. You want to get the best deal possible for yourself. It is your money; you just want immediate access to it, and so keep as much of it you can. Always check with the Better Business Bureau if you are unsure about any company you might be dealing with.
Read the entire contract before you sign it, especially the hidden fees. You want to know about any hidden charges upfront. You don’t want to end up with less money than you thought you were going to get, because of lack of attention.
Ask questions about everything you don’t understand. You can even make them repeat step by step everything, as it will take place, just to make sure you have it down correctly in your mind. Make them clarify any details if only for your own piece of mind. It doesn’t hurt to make sure you have it all in writing. The company has more experience at doing these types of transaction, but you are a novice, so it is understandable for you to ask lots of questions. After all it is your money at stake.
Selling your annuity and receiving the check will probably take as long as a couple of months so don’t get impatient. You will need to keep in mind most insurance companies will not allow you to sell your annuity to a third party. The courts must get involved for the sale to take place. Paperwork must be filed with the courts before the sale of your annuity can go through.
Trying to rush or hurry through the process you may miss an important detail and it won’t get you anywhere. You are literally at the mercy of the courts and the length of time it takes for them to process your paperwork. If you need the money quickly, try and start early enough to get it done by the time you need it. Just be as patient as possible because there are procedures, which must be followed and cannot be hurried.
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