Many people dream of winning the lottery or getting a big settlement in a lawsuit. What most people do not realize is that they will not get all of their money in a lump sum. The lottery pays one decent check and then 29 or 30 annual payments. Some people like that. They like knowing they will have an income for the next three decades. For some people, however, this is not the best arrangement. If you need your money sooner than later, you may want to consider selling to get cash for an annuity now. There is a process to selling an annuity settlement.
4 Tips for Selling to Get Cash for an Annuity:
1. Look at your finances.
Before you start the process of selling your annuity, you need to take a good look at your finances and your debts. You should pull your credit report to see what creditors see when they look at you. For most consumers, the debts they have are from medical bills, student loans and credit cards.
There is currently about $1.3 trillion in outstanding student loans. More than 60% of all American bankruptcies are due to medical debt. The average credit card debt per household is about $15,355. Nearly 35% of Ameican adults have problems paying their bills. That equals 64 million people. Nearly 20% of the United States population considers itself to be in what is called “debt hardship.”
If you are in any of these categories, when you get cash for an annuity, it can help get you out of debt. That is a very good thing and one of the best reasons for selling an annuity. Selling an annuity is one if the best ways to reduce debt or eliminate it all together.
2. Get at least one quote for your annuity.
You have made the decision that you are going to sell your structured settlement. You know what you are going to do when you get cash for an annuity, what next? Now you have to fund a reputable company to buy it and the first part of that process is getting a quote. You should go to a few reputable companies and get several quotes. This is not exactly like selling a car but you still want to make sure you are getting as much as you can for your annuity when you sell it. That is just common sense.
3. Research and become familiar with the legalities involved in selling an annuity.
Again, selling structured settlement payments is not the same thing as selling a car or a house. There are federal statutes that govern the sale of an annuity. When you look to get cash for an annuity, you have to comply with federal law. There are also state laws about this in 47 states. You also need to comply with the law in your state. Before you attempt to move forward with your sale, you should look into the laws in your state. You may be in a state that does not regulate this.
One thing you will have to do is have a judge approve your sale. They will want to know that you have a good reason for selling you annuity and that you understand the full ramifications of selling your structured settlement. There are tax implications and you will end up receiving less money in the long run. They just want to make sure you are not being taken advantage of.
4. Know where you stand with the company to whom you are selling your annuity.
You need to know what you exactly you should expect when you sell an annuity. Some companies will promise you everything they think you want. They may tell you that the minute you sign the papers to sell, you will get your money and that is not entirely true. Because of the laws, rules and regulations governing the sale of annuities, you will not get your money for a little while. It typically takes between 45 and 60 days for the sale to go through and the cash to be delivered. If you know that going in, it will be easier to deal with the wait.