The Annuity Selling Guide
Very few people really know what is involved in selling an annuity, primarily because few people have these types of investment vehicles and even fewer know they can be liquidated. However, selling annuities is becoming more mainstream as people realize what options they have. Here is an in depth look at annuities and how to go about selling them.
Annuities are types of investments which pay out periodic payments, often monthly, quarterly, or yearly. They are often set up to provide a source of income for an individual. While some are purchased by individuals for themselves, many are also purchased as part of structured settlements for lawsuits. Those that are part of a structured settlement are the most likely to be sold once the individual realizes they do not provide the security expected. These types of assets are sold most often to individuals or companies for a lump sum of cash.
The first step in selling an annuity is deciding which company to utilize. The good news is that there are several annuity buyers to choose from. In this process, you should look at the fees each company charges, the time it will take to complete the sale, and the overall feel of the company. Some of these companies have been proven to be dishonest, so you should proceed with caution and be certain you are dealing with a reputable company. Once you choose a buyer, the hardest part of the process is over.
The next step is going to be to provide the company with the paperwork on the annuity. If you do not keep records of this nature, you should contact the annuity provider and collect it before looking for a buyer. The reason for this is simple: any buyer you choose will need this information; therefore, it is better to have it on hand. Unfortunately, some annuities are not transferable, so the paperwork should be reviewed carefully to be certain a transfer is possible.
Once everything is submitted to the buyer, you may discuss the specifics of the purchase. The company may be unwilling to get into details before seeing the necessary paperwork as not to act on speculation. However, once these decisions are made, the closing paperwork can be prepared, signed, and the check delivered. At this point, the sale is complete and you can go about life as normal, with a little more cash in your pocket.