At Patriot Settlement Resources we take pride in helping people obtain a large lump sum of cash now for their future payments from a Structured Settlement, Annuity or Lottery award.
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Member in good standing of the National Association of Settlement Purchasers (NASP)
Sell Settlement Annuity
There are many different types of annuities available today and they all, in essence, do the same thing for their owners. An annuity is, in very general terms, a financial instrument that pays out a certain amount of the holder of the annuity at a regular interval, usually a month. One type of annuity is a settlement annuity that is often offered to the victims of accidents that was caused by another party instead of a lump sum of money. The victim received a certain sum every month that will eventually amount to the total that the other party needs to pay them. Sometimes, some people go out to sell settlement annuity contracts.
There are many reasons why a person would like to sell. Settlement annuity contracts pay out small amounts over time and some people would like to have the money, in a lump sum, right now. There are companies out there that are willing to buy your settlement annuity but you can also try to sell it privately to someone else. Either method has its advantages and disadvantages and it is up to the seller to determine which is the better option for them.
The most important consideration in private selling is that it takes a lot more effort to sell. Settlement annuities are very specific about who is paid by the annuity and how it can be transferred. Make sure you are aware of all the 'fine print' before you go out to sell your settlement annuity. The advantage is that you will likely get a much better price than if you sell it to a company that buys annuities. If you cannot find a buyer then perhaps you might be able to find someone willing to trade annuities where you could get one that pays out more per month but over a shorter period of time.
Selling to a company means that you are likely to lose out. Companies buy annuities to make a profit. They are likely to offer you an amount that is 10-15% less than the total that would be paid out by the end of the annuity. The advantages are obvious, however. You are guaranteed to be paid since the company will not offer to buy it if they cannot afford it. The transaction will be handled completely by them taking all the paperwork and forms and such out of your hands and making it a lot easier to sell. Settlement annuity contracts are often sought by companies so it will not be too hard to find a potential buyer either.
If you are going out to sell settlement annuity contracts, just keep these two things in mind. In the long run it may be better to keep up with the payments that slowly come to you. If, however, you require the money immediately then selling the annuity is a good way to get the total quickly and painlessly.