Sell annuities through settlement companies such as J.G. Wentworth, which also purchases structured settlements, notes Bankrate. Be aware that selling annuities before the age of 59 1/2 can lead to surrender charges of up to 10 percent and may trigger federal taxes and penalties.Continue Reading
Companies that buy annuities make cash offers to take over receipt of monthly annuity payouts, and charge sellers discount rates, which are similar to the interest rates on loans. It is possible to sell a portion of annuity payments to meet immediate financial needs. When selling an annuity, get offers from several companies, negotiate, and choose the offer with the best terms, advises Bankrate. A judge must approve an annuity buyout, based on whether the seller's financial need is legitimate, the reputation of the settlement company and the terms of the discount rate.
Annuities sellers must be able to demonstrate true financial need, and cannot sell to make purchases such as unnecessary vehicles or vacations, states Bankrate. Judges likely won't approve annuity buyouts based on fears that a financial crisis is going to cause the companies holding their annuities to stop making payments. While the exact timeframe varies between jurisdictions, annuities sellers generally receive money between 62 and 90 days after contacting settlement companies.Learn more about Financial Planning