Cash for Annuity Payments
Cash for annuity payments can be obtained by selling structured settlement payments to a private note investor. Obtaining cash for annuity payments is a complicated process and requires court approval. Therefore, it is crucial to understand the process involved and work with a professional skilled in structured settlement transactions.
To obtain cash for annuity payments, the first step requires you to determine if you will sell your structured settlement in its entirety or partial payments. When selling annuity payments, you will be required to assign rights to future payments to the investor or investment firm purchasing them. Taking this fact into consideration, you can see why it is imperative to work with a reputable investor.
People require cash for annuity payments for a variety of reasons. The most common include obtaining lump sum cash to pay off debts, medical bills or for college tuition. In some instances, people require cash for annuity payments in order to purchase stocks, bonds or real estate. Annuity payments cannot be sold for frivolous purchases. There must be a legitimate need for the money or the judge will not authorize the transaction.
Once you determine if you will be selling annuity payments in whole or partial, you will need to organize your structured settlement details. Investors require the name of the issuing insurance company, along with the exact amounts of the payments and dates you receive them.
The investor will review the documents to determine present day value of the structured settlement. Afterwards, the investor will contact you to discuss options available. Most investors have access to a variety of annuity buyers. Your goal is to locate an investor who works with annuity buyers who will offer premium prices for future annuities.
Investor consultations typically last about one hour. You should feel comfortable discussing why you want cash for annuity payments. Reputable investors will advise you of any potential pitfalls or adverse affects of selling structured settlement payments. During the consultation, take time to ask plenty of questions and obtain references. Take time to follow-up with references to ensure you are working with a reputable investor who will take care of your needs.
Once the investor locates an annuity buyer willing to offer you cash for annuity payments, you will be required to sign legal documents. State laws dictate the sale of annuity payments and the process typically takes 3 to 10 business days to complete.
Signed documents are sent to a factoring company in order to facilitate the underwriting process. Once the underwriting process is complete, the transaction is forwarded to a judge for review and authorization for transfer of payments. The entire process to obtain cash for annuity payments takes 30 to 45 days.
Prior to selling your structured settlement for the purpose of obtaining cash for annuity payments, take time to conduct due diligence. Thoroughly investigate several note buying companies. Consult with a minimum of three note buyers prior to making your final decision. Doing so will ensure a positive experience when selling your annuity payments for cash.