How Do I Sell My Annuity?
To protect both the buyer and the seller, the sale of annuities is regulated by federal law as well as the law in 49 states. While the process of selling annuities is fairly straightforward, there are certain disclosures and other documentation that you or your lawyer must review. CBC Settlement Funding’s professionals will monitor every step in the process of selling annuities to ensure the transaction goes smoothly.
Reasons to Sell An Annuity
There are many reasons why you may want to sell your annuity.
Some common reasons for selling annuities include:
- Loss of employment
- Medical bills
- Paying off debt
- Sending a child to college
- Buying a home
- Repairing a home
- Starting or investing in a business
- The annuity was inherited
- Purchase a vehicle
Selling Your Annuity
Your first step in getting cash for annuity payments is to contact one of CBC’s annuity buyers. This professional will go over the various options that are available, such as a partial sale, lump sum sale and/or offer assistance in selecting the best one for a particular situation. There is no fee for this consultation.
There are several options when it comes to selling your annuity, including a full purchase, partial purchase, and lump sum purchase. A partial purchase allows you to sell some of your annuity payments, ensuring you get the cash you need now, but will continue to get annuity payments in the future. A full purchase will sell the annuity in its entirety, giving you the chance to invest a large sum at once. A lump sum purchase allows you to sell a lump sum amount of your annuity without selling the entire thing.
Once you and your customer representative have determined the appropriate option for your settlement lump sum, our staff will prepare the required legal documents and them to you for review. We also recommend that you go over them with your own attorney. Once you have read the documents and understand them thoroughly, you simply sign and return them to CBC. CBC’s lawyers will then file them with the court.
Factors That Impact Annuity Sale
When considering whether or not to sell your annuity, it’s important to consider all the factors involved with the sale, including the value of your annuity, discount rates and tax implications.
- Discount Rates – When you sell your annuity, you will not be paid the full amount the annuity is worth. In exchange for receiving a lump sum up front, you will agree to sell your annuity at a discounted amount based on predicted future interest rates. This percentage is called a discount rate. When researching annuity buyers, make sure to ask what discount rate the company prefers to use. The lower the discount rate, the more money the seller will receive in their lump sum payout.
- Annuity Value – Besides the discount rate, other factors that will impact the value of your annuity, or how much a buyer will agree to purchase it for, are how much you wish to sell, the current economic conditions, predicted future economic conditions, fees or charges your annuity carries, frequency of your payments.
Length of Time Required To Sell An Annuity
The length of court cases can vary from state to state, judge to judge and case to case. Roughly on average, it takes 45 – 60 days to complete the selling process. Once the court reviews and approves annuity sale you should then receive your cash within 48-72 hours, either by check or via electronic transfer, depending on your preference. Keep in mind that this timeline is approximate; every state’s regulations governing annuity sales are different, and this will affect the length of time required to complete the transaction.
CBC Settlement Funding Can Help
CBC Settlement Funding can provide you with a lump sum cash advance for clients selling annuities. Contact CBC Settlement Funding today for more information on customized cash options to fit your financial needs.