What is an Annuity?
Many Americans use annuities as financial planning tools to help finance a comfortable retirement or provide for their family after an insurance settlement.
Understanding Annuities
An annuity is an investment option insurance companies and financial institutions issue that ensure financial stability and a consistent income stream over a set period of time.
Annuity owners exchange their money for a guarantee on their investment years down the line. Unlike some retirement accounts, there is no limit on the amount a person can contribute to this investment account.
Rather than waiting years to receive annuity payments, account owners may request a full or partial lump sum of their investment to finance home repairs, debt or other life events.
Annuity payments may result from:
- A large, paid-up life insurance policy
- A retirement account
- An insurance settlement
- A structured settlement from a successful lawsuit
- A trust fund
Why lump sum may be less than total value:
- Total amount of payment being sold
- Current interest rates
- Inflation rates
- How much money has already been disbursed
About Annuity Payouts
Selling annuity payments, also known as an "annuity transfer," is an exchange of your steady stream of periodic payments for one large lump sum of cash immediately.
Account owners may sell their annuity in its entirety, or in a partial sale, but will have to pay interest for the quick turnaround. For that reason, the lump sum will be less than the total you would have received by the end of the payment period.
Reasons to Sell Your Annuity
There are several good reasons to sell your annuity for a lump sum of cash. If faced with sudden, unexpected expenses, it makes sense to seek an annuity payout.
Investment Opportunity
Seize a time-sensitive investment opportunity
Education Funding
Fund your or a family member's education
Medical Bills
Pay for surgery or other medical expenses
Home Repairs
Repair or remodel your home
Job Loss
Cover expenses during unemployment
Debt Relief
Alleviate unexpected debt
The Annuity Sale Process
Selling an annuity is a simple process. Almost all states have laws in place asserting your legal right to transfer your payments to another person or business entity.
Ask for Price Quotes
Annuity purchasing companies should offer price quotes with a low discount rate. CBC Settlement Funding always provides competitive price quotes with no strings attached.
Choose a Buyer
Look for a buyer who has positive reviews online and is accredited with multiple associations. CBC Settlement Funding has an A+ rating from the Better Business Bureau.
File Paperwork
Whether you are selling a single premium investment annuity or a structured settlement, CBC only requires a copy of the contract or settlement, and personal identification documents to get started.
Get Judicial Approval
Selling an annuity is a legal process. The legal staff at CBC will deal with all court filings and appearances on your behalf.
Annuities FAQs
Let CBC Help
Our team of experienced, caring professionals will make the process of selling some or all of your structured settlement or annuity payments easy.