Many people do plan early for their retirements. If one fails to plan properly, then there may be a risk of outliving the income. Investing in an annuity is properly one of the best options that you can take to ensure that your old age days are financially secure. An annuity is an investment plan that you purchase from an insurance company by either making regular or lump sum payments. It is a saving plan meant to provide you with income when you retire. The disbursement of cash can start immediately or after some time depending on the terms and conditions of the insurance company that you are working with.
Types of Annuities
There are several types of annuities that someone can go in for depending on their needs and ability to purchase. Immediate Annuity: With an immediate annuity, a client pays lump-sum and starts receiving income almost immediately. This income is guaranteed, and once payment begins, it is irrevocable. Deferred Annuity: Deferred annuity plan takes long before you start getting the disbursement. It has room to increase your income in future. Fixed Indexed: This is a fixed annuity which works with variable interest rates which are summed up with the initial contract value; a good example is the S&P 500. Fixed Annuity: With this type of annuity you get a fixed interest investment plan. Its interest rates are guaranteed, and you can draw or defer income immediately.
Partial and entire or full purchases are the two standard selling options that you can use to sell an annuity. The RSL funding has several options of buying an annuity. In entire or full purchase option all your payments are done at once. The payment is in lump-sum which settles all the payments, and you will not go back to claim any cash.
Partial annuity selling, on the other hand, is an option whereby your annuity payments are purchased for a given timeframe specified by you. This sale option is suitable for persons who would want to start receiving their annuity after a specified period.
How to Sell Annuity Payments
The process of selling annuity payments is legal, and all the legal processes and documents must be filled for the process to be recognized by law. Whereas there are several annuities which are legible for sale some can’t be sold off, examples are veterans’ benefits, social security benefits, and child support payments among much more. The process of selling annuity payments can take between one and a half months to two months and involves the following steps. Decide that you want to sell your annuity. Making a decision that you are ready to sell the annuity serves as stepping stone for the rest of the processes. Contact a sales agent or broker: Sales agents are the middlemen in annuity selling process. You should be careful when picking an agent to work with. Check and ascertain is the agent is licensed to transact annuity selling business. Brokers have contacts with potential buyers hence reducing the time that you take before getting a customer.
Make your quote. You may not get 100% the value of your annuity, but you can quote 80% and above which in most cases is considered a fair deal. Go to court. After making all the paperwork ready, you can proceed to court where the judge will decide whether your annuity is legible for sale or not. Once the judge gives you go ahead to sell, then you can move to the last step. Getting paid, when you get paid, it means that the deal is sealed and you can now use your cash for the intended purpose.
Reasons for Selling Annuities
Selling of annuity is the last resort to many people that make annuity sale. The Companies that buy the annuity, on the other hand, weighs your reason for selling annuity against your need for cash in future to determine whether to buy your annuity or advice you otherwise. Some of the common reasons why people sell annuity include but not limited to paying medical bills, paying study student loan, credit card debt, and medical bills.
It is advisable to seek the assistance of an attorney whenever you are selling annuity payments if you are not well conversant with the whole process.