Can I Sell Structured Settlement Annuity Payments for Cash?

Yes absolutely, you can sell your structured settlement annuity payments for cash in the event your financial needs differ or current annuity is no longer benefiting you and the process is pretty simple and legal. There are numerous companies that are doing business by selling structured settlement annuity on cash. All you require is to first verbalize with your financial advisor who has an experience of structured settlement secondary market. It’s up to you how much you want to sell, either a portion of every payment or your entire structured settlement.


Why Should I Sell My Annuity Payments?

Life is unpredictable. Selling annuity payments avails you in the time of money crisis. There are several reasons people sell their annuity payments and some of them are listed below:

  • Buying a new car, house or property
  • Paying hefty medical or credit card bills
  • Spending on traveling, vacationing
  • Time of inflation
  • Divorcing or separating from the spouse
  • Spending on higher education
  • Starting a new business or investment
  • Unexpected events like unemployment, injury or an accident
  • Paying for a wedding
  • Paying off loan


Options For Selling Payments:

There are several options for annuity owners when selling their payment and its totally up to you which one you select according to your financial need. The most common are; Partial, Entirely and Lump Sum.



In partial selling, a concrete portion of annuity is sold for a specific period of time and once that time will go annuity payment will resume. For example, If the owner has an annuity of 5 years and wants to buy a new car now, he can sell annuity from 1 to 3 years to consummate his needs. And for 3 years the annuity payments will be ceased. Once those years pass away, the annuity payments will continue as usual.



This is the most common option while selling an annuity. In this process, the annuity owner will receive a lump sum amount of cash in hand at once.


Lump Sum:

This is similar to a partial purchase.  In this purchase, an annuity owner can opt to sell a portion of their investments in exchange for a lump sum. The difference is that the amounts are more categorical. If an annuity holder needs a certain amount of money to rehabilatate a house, the amount will be taken from the future annuity income stream.


Money Receive for Selling Annuity Payments?

The worth of an annuity depends on the insurance company the owner has invested with and the type of selling payments. It’s just like a business deal which depends on the host of factors like time of selling the annuity, how much amount you are selling, the current status of the finance market etc.


Who Will Buy My Annuity?

Finding an annuity buyer is a very easy and simple process. Many companies are doing business in buying annuities, you can contact them and maybe they will get interested in purchasing your annuity.


Can All Annuities Be Sold?

Yes, definitely you can sell all annuities at once. If sold at once, you will not be able to receive future payments but if you sell a portion of annuities, you will receive lump sum cash at the time and later annuity payment will be restart periodically.


How Long Does It Take To Receive Funds?

Selling Annuity is an easy yet lengthy process and it takes nearly 2 months in receiving the cash. An annuity sale is a legal process that requires court approval, signed documents proper surety that this cash will helps positively.


The Legal Process for Selling Annuities

In this process both the buyer and the annuitant contact with regulatory courts or laws that will guide you about securing your rights while selling the annuities to another party. After all the legal documentation and paperwork is submitted in the court a judge is required that will help you in transferring the money through legal channel. The judge will check the reasons for selling the annuities and after that will decide whether you are allowed to sell the payment or not.

Author: Haniya Siddiqui

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