Sell an annuity

Due to emergency and unexpected circumstances some people choose to sell an annuity they own to get access to cash fast. This method assures that the client will receive money quicker, since he does not need to wait for the processing time which could take several months.

But what is annuity?

In simple words an annuity is an investment that matures and assures the investor of a certain amount of money which can be optional either monthly, half yearly or even annual. A fixed amount of money is set on death or maturity. This amount includes the principle amount plus additional interest earned. Unlike other insurance policies annuities do not offer insurance but guarantee fixed and constant income for life the duration of the investor's life. Also known as pension plans, annuities are fast becoming popular among the public who can now plan for their pensions during old age.

Why sell an annuity

To answer in one word - FLEXIBILITY.

When we invest in annuities there is no restriction after the maturity term has reached, we can either maintain it or cash the principle amount plus interest earned till then. It does not restrict the beneficiary of the funds and can be put on anyone's name. This gives us flexibility since the investor can sell the annuity if he needs hard cash urgently. This is where a best settlement funding company like GENEX CAPITAL buyer of structured settlements comes in to picture. They provide quick payments to needy investors who cannot wait for long processing durations. In some cases the policy term has only a year or two to mature but the investor may need the money immediately. Funding companies like Genex capital make sure they don't fall by the way side while waiting for processing to get approved and completed. They step in by offering an attractive solution of buying the investment for a little less and waiting themselves for the maturity. This could save a person requiring money urgently from an uncomfortable situation.

Process to sell an annuity

There are a few steps that require to be followed when selling your annuity as given below

- Getting the right quote: This is the initial step in the process. The investor will need to research and get quotes for the annuity he/she wants to sell.

- Signing selling rights contract: Once you have chosen the right buyer you will need to sign a selling right contract that makes the chosen company the beneficiary.

- Annuity documents: If not done as yet you will need to hand over or post a copy of the annuity documents to the factoring company. Don't send the originals and if you have to remember to keep a copy of the documents for yourself.

- Petition in court: After signing the contract and handing over the documents, the papers will be sent to an attorney who presents them in court a for legal approval and transfer of settlement payment rights.

- Court hearing: A court hearing will be held to find the intent of the sale of future annuity payments. This is done to avoid any forced payment where the client could publicize the reason for sale.

- Payment: as soon as the hearing has taken place and everything has been given the go ahead, the settlement funding company will make the payment to the investor.

An investor may choose to sell annuity they have for many different reasons, but this gives the investors a little encouragement since all is not lost when they invest in long term plans and money can be accessed if required urgently from a buyer of structured settlement like GENEX CAPITAL.