The Pros and Cons of Selling Your Annuity: What You NEED to Know
Each year, more than $6 million is paid out to fund new structured settlement annuities. Although these financial arrangements provide people with more support, it’s sometimes not enough. In many cases, people decide to sell fixed annuity settlements to get a lump sum of cash they can use as a financial solution. This can be a good or a bad idea. Here’s what you should know about selling your annuity.
The Pros of Selling Your Annuity
Control – Selling your annuity can be a great idea if you want to have more control over your funds. With a lump sum, you can access your money as you need it, rather than when a court says you can.
Credit – Once you have your lump sum, you can pay off whatever bills you may have, and eliminate your debt, which could save your credit score, and help secure your financial future.
Peace of Mind – There is no easier sleep than the sleep you get once you’ve paid off your bills. Having a lump sum will give you the peace of mind that financial requirements have been met.
The Cons of Selling Your Annuity
One Time – If you have trouble making a living, it may not be a good idea to sell your annuity. Having a steady stream of income provides financial stability, which is what an annuity can do.
Surrender Charges – the worst part of selling your annuity is that you won’t be able to get the whole amount. You’re going to have to pay a surrender charge. The good news is that it can cost only up to 10%, which isn’t too bad all things considered.
Selling your annuity can be a smart decision, or a poor one. You just have to weigh your options. Odds are that you know what to do, and will make the right decision, as the overwhelming majority of people tend to do — about 92% of people who sell their annuity are satisfied with their decision. If you’re still unsure whether or not you should sell annuity payments, feel free to share whatever question you may have in the comments.