Sell Annuity For Lump Sum Cash Payment

Any investor that has been around for a while knows that sometimes things don’t go as planned. Not only can you make poor investing decisions, but other personal factors also come into play. Unexpected job losses, medical expenses, accidents, and other of life’s unpleasantries may place you in an immediate financial need. With some investments, it is quite easy to pull your money out and apply it towards your unexpected circumstances. Other financial investments require a bit more to terminate and cash-out of the contract. Fixed rate annuities (as well as other annuities) traditionally fall into this category.
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In order to cancel your annuity contract, you normally would be subject to sizeable surrender and/or early termination fees from the insurance company. Annuities are meant to be a long-term investment that provides value to the annuitant over time. They are typically not meant to provide immediate income in a time of need.

Fortunately for investors, there is a secondary market for annuity payments that can be pursued. You have the ability to sell annuity contracts and/or payments for a lump-sum cash amount. If you financial need only requires a portion of your annuity payments to be sold, you can sell just that portion of the payment stream on the open market. There are willing buyers looking to purchase discounted payment streams and will be eager to pick up your payments.

Understand the selling your annuity payments will still come at a cost. Not only will you be selling the payments at a somewhat discounted price, but you must also cover the spread for the brokerage company to complete the transaction. If you need is sufficient however, this may be a small price to pay. By selling all or a portion of your annuity on the marketplace, you can ensure that you have the cash necessary to meet your financial needs.