Where to Cash in an Annuity
The original premise behind annuities was a logical one — to provide secure periodic payments for an individual. However, sometimes these "secure" payments are not actually what would be the most beneficial, particularly in the case of annuities purchased as a part of a structured settlement. In these cases, people are sometimes coerced or pressured into accepting an annuity in order to settle a case. These are most often done in the name if "security", so the plaintiffs will not squander away their winnings, but in actuality, these are better structures for the insurance companies paying the claim. For an individual in such a position, it is often more beneficial to cash in an annuity instead of waiting for periodic payments.
In order to cash in an annuity, you must first find an annuity buyer. However, before you can even do that you should be certain the annuity is transferable, meaning it can be put in someone else's name. Many annuities are set up where they can not be sold or transferred; if this is the case, it is better to know sooner rather than later. Look through your paperwork or call your annuity company to be sure of the legalities of the transfer.
Once you determine you can sell it, check the Internet for companies that specialize in the purchase of annuities. There are many available; the key is finding the one with the least amount of wait time, the least amount of paperwork, and the least bureaucratic process. However, it is more important to be sure of the legitimacy of the company. You can call the Better Business Bureau to verify there are no complaints on the company before doing business with them, or at least if there are complaints they are frivolous.
You can also look locally for a company to cash in your annuity. Again, the key is finding a good solid company you can trust with your time and money. Look in the yellow pages or ask for referrals from people you trust. CPA's, financial planners, and attorneys may be more likely to know of such companies. If you are in a small town, there may not be any local companies. However, you can look on the Internet, as stated earlier, or you can look to nearby cities to locate a buyer. If you are certain you wish to cash in the annuity, do not let a little thing like distance stop you.