What Are Annuity Buyers?
When you sell your annuity payments you can legally sell them to any third party. In virtually all cases, sellers choose a specialty finance company such as CBC Settlement Funding to handle the transaction. Some reasons an annuity owner might choose to sell include funding an emergency, investing in a business or buying a home. Each seller should evaluate their annuity, reselling worth and reasons for selling before looking for a buyer.
CBC Settlement Funding and other annuity buyers will purchase the future payments rights from:
- a large, paid-up life insurance policy
- a retirement account
- insurance settlements
- structured settlements from successful lawsuits
- trust fund payments
Annuity buyers offer large lump sum payments to beneficiaries and recipients of annuities who need to cash in their periodic payments for lump sum now. The lump sum payment is less than the total the beneficiary would have received by the end of the term — the amount the total is reduced by is called a discount rate — but it offers far more flexibility to meet immediate financial obligations.
Selecting an Annuity Buyer
There is a large market for annuity sales and many companies specialize in purchasing annuities. When looking for an annuity buyer, it’s important to thoroughly research the company before working with them.
Annuity buyers should:
- Offer free quotes
- Have a competitive discount rate
- Staff experienced customer service representatives and lawyers who can help you with paperwork and answer questions
- Avoid pushy sales tactics
- Recommend you discuss their quote with your attorney or accountant
- Are accredited to work in the annuity buying space
- Having positive ratings from the Better Business Bureau and online review websites
Once you select an annuity buyer, your research shouldn’t stop. Continue asking questions once you’ve made contact with a customer representative.
Questions you should ask CBC Settlement Funding and other annuity buyers include:
- What is your discount rate?
- Do you offer cash advances?
- What happens if a judge rejects my sale?
- What is your approval rate?
- Will your lawyers be available to help me through the selling process?
- How long will it take to sell my annuity and get my money?
CBC Settlement Funding is an Annuity Buyer
At CBC, our staff will take care of all the paperwork for you when you choose us to buy your future annuity payments. You may receive your annuity payout in a cashier’s check, or have the money transferred electronically to your personal account.