Before You Sell: 3 Things You Need to Think About Before Selling Your Annuity
More than 37,000 Americans use money they earned from an annuity each year, but sometimes, it’s not enough. Every day, people sell annuity payments for cash to help them overcome financial challenges, and the overwhelming majority (92%) are glad they did. The thing is that you can’t just sell it off. There are things that must be considered, first. Here are just a few of the things you need to think about before selling an annuity settlement.
Why Are You Selling Your Annuity?
The first thing you need to think about is your reason for selling; some are better than others. Before you can sell, you’re going to need the permission of a court, and if your reason is lacking, they won’t grant you permission. Things like a new sound system or vacation packages aren’t going to get OKed. Paying off debt, covering unforeseen medical expenses, investing in a new business, getting a family vehicle, and making repairs to your home are all perfectly acceptable reasons to sell your annuity.
How Long Will It Take?
As with most large payments, it takes a while for your sale to go through. You need to think about how long it’ll take, and what you can do in the meantime, because selling your annuity can take as long as 45 to 60 days, unfortunately.
What It Will Cost You?
If you plan to sell the entirety of what you have left, then be prepared to get less. Companies need to make money off of the sales somehow, and so they charge surrender fees that can go up to 10% at most. That being said, that’s not a whole lot to pay for the peace of mind that comes with settling debts, paying off unexpected expenses, or fixing things up. If you have any questions about what you should think about before selling, feel free to share in the comments.