What are annuities? For those who don’t already have one, they are an insurance option that is typically purchased to help manage people’s incomes in retirement. Those who purchase annuities are very loyal and committed to their purchase,with around 93% reporting they still own their first annuity purchase.
Buying annuities should not be very challenging as there are plenty of insurance agents out there ready to help you decide what type of annuity is best for you. For example, variable annuities are not suitable for meeting short-term goals because there are hefty taxes and insurance charges are applicable if you withdraw your money early.
Selling annuities is a bit more challenging. You may be wondering “how do I sell my annuity?” Here’s how to find a buyer, in four steps.
First Method: Is your annuity transferable or is it an annuity structured settlement? If it is not transferable, then you can’t sell your annuity at all. If you’re really desperate for cash, you can list it as an asset or a certain form of income and apply for a bank loan instead.
If the annuity is a structured settlement, you will probably be protected under law when you decide to sell it. Under the Structured Settlement Protection Act, the sale will need to be approved by a state court, but it is do-able.
Second Method: Determining the worth of your annuity by finding out what the resell value is. All annuities offer a tax-deferral, however your distributions are taxable, so understand that you may not get the full worth of your insurance package back.
Seek out legal advice to help you understand the inner workings of annuities and what the benefits of selling an annuity can be.
Third Method: Trying to find a buyer can be quite simple; asking your insurance agent for recommendations should be the first thing you do. You can also reach online for respectable companies that specialize in purchasing annuities. When looking online at companies, always use their quote form and get a quote about how much they would pay for your annuity.
Having at least five offers from five different companies is a great position to be in and will help you decide who to sell to. You can always sell annuities on your own in order to avoid fees, yet this is not advisable. Instead, you should hire a broker to help you sell it.
You will need to recognize that the buyer will be the one gaining the most from this transaction because they are making an investment which, if they purchase, will end up growing and being very beneficial for them in the long run.
Fourth Method: Prepare your paperwork accordingly; every document must be reviewed, signed, dated, and copied for filing purposes. You must be able to prove that this is your annuity by providing the actual policy, the original application, and your most recent disbursement check and tax return.
If you have any questions about the selling process, always consult a lawyer or agent that specializes in annuities and structured settlements. Learn more about this topic here: www.sellmyannuity.net
