Refer your friends: Sell Annuity Payment Options
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Did you know that you can decide to sell all or just some of your structured settlement annuity payments?
The Internet is full of many professionals who will help you decide if selling all or just part of your annuity payments is in your best interest.
Some people decide to only partially sell annuity payment. The reason for this may be that although they are in need of a lump sum they also see the benefit of an annuity payment.
It can be reassuring to know that although you need to cash out a portion of your annuity payment to cover an unexpected or emergency expense you don’t have to trade in the whole thing.
However each situation is unique and it’s best to explore all your sell annuity payment options before you decide on which direction to take.
If you choose to sell only a portion of your remaining annuity balance and accept a lump sum in its place you will reduce the actual amount of any future settlement payments. The upside to this sell annuity payment option is that although reduced, your payments will continue uninterrupted and you’ll receive a lump sum check for the partial annuity payment you sold.
You can also sell a remaining annuity balance at anytime during the settlement process. For instance, if you’re in year ten of a 20 year settlement you can sell all or part of the value of the remaining ten years of payments.
Another sell annuity payment option is to only sell a certain number of payments. Many brokers will be open to buying only a specified number of annuity payments. The advantage of this to the seller is that after a certain time period your annuity will go back to paying you as it did before. In theory, you could decide to sell five years of payments and then once those payments have elapsed your payments would be re-established.
Finally you could sell annuity payment in full. A broker will give you a quote based on a standard calculation of the present value of your remaining payments. Once this is done and you have been authorized by a court to be able to sell to a third party you would receive a lump sum check for the balance of your annuity payments.
To further understand which sell annuity payment option is in your best interest it’s important you understand what ‘present’ or ‘current’ value is. Essentially it’s a calculation of what your annuity payments are worth in today’s dollars. When you factor in inflation, the current dollar value is worth less than what a dollar will be valued at in the future. When making his or her calculations, a broker will take the present and future dollar values into consideration and determine a realistic value for your payments.
In other words, you will receive less in a lump sum now that if you had continued to receive your annuity payments over the course of your structured settlement term.
That said, when you factor in taxes, inflation and the cost of living in the future you’ll see how the ‘present’ or ‘current’ value is a realistic representation of the value of your annuity as it stands today.
The bottom line is educate yourself about your sell annuity payment options, ask questions and seek more than one opinion regarding the ‘present’ or ‘current’ value of your annuity payment.
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