Cash for Annuity Payments
Cash for annuity payments can be received by selling structured settlements to a cash flow note investor. Private investors and investment groups provide lump sum cash payments in exchange for assignments of annuity payments. However, it is important to understand how this type of transaction works before entering into a contact. It is even more important to scrutinize the company offering to buy structured settlement annuity payments.
Obtaining cash for annuity payments can be a complex process. In some states, the sale of structured settlements requires court approval. Therefore, it is best to consult with a professional note buyer such as Simon Volkov or a structured settlement attorney.
When annuitants sell structured settlements in whole or part they must assign their rights to future payments over to the investor or entity providing them with cash. Unless absolutely necessary, annuitants should avoid selling their annuity payments in full. Instead, they should determine exactly how much money they need and sell a portion of payments.
Many people require cash for annuity payments to pay off credit cards, medical expenses or college tuition. Others want quick cash for investment purposes such as buying stocks, bonds, or real estate. Annuitants can do whatever they want with the money. However, structured settlements are usually established to provide extended cash payments to help cover medical expenses or obtain long-term medical care.
The structured settlement company will require details of the agreement. Be prepared to provide note investors with the name of the company insuring the annuity payments, along with the dates and amount of each payment. The note investor will also need to know how much money is required or the number of payments you wish to sell.
This information allows the annuity buyer to determine the present day value of the structured settlement. Once the value has been determined, the annuity buyer will contact the seller to discuss various options. Strive to work with investors or structured settlement companies that offer top dollar for future annuity payments.
It is important to feel comfortable with the company you use to obtain cash for annuity payments. Take time to ask questions and obtain references. Be certain to contact each reference and conduct research on the company to ensure you are working with a reputable and trustworthy organization.
Once an agreement is reached, annuitants are required to sign legal documents. The documents are then sent to a factoring company who facilitates the underwriting process. Once the underwriting process is complete, the transaction must be approved by a judge who authorizes the transfer of payments. The process typically takes 10 to 14 business days to complete.
Take time to weigh all options prior to obtaining cash for annuity payments. Investigate several note buying companies and consult with a minimum of three structured settlement note buyers before making a final decision. This can help ensure a positive experience and avoid being scammed.
Simon Volkov is an industry leader in providing cash for annuity payments. To obtain a complimentary consultation fill out our secure "Sell Structured Settlement" form. Upon receipt of your information, Simon will personally contact you to discuss available options suitable for your financial needs.
Published on September 17, 2009 at 01:29 AM