Cash for Annuity | SAF Capital
If you’re looking to sell your structured settlement or receive cash for annuity, give SAF Capital a call today at 954-367-0665.
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Cash For Annuity

If you’ve been unexpectedly hit with financial hardship, you’re likely considering the options you have before you in order to get back on your feet. Many people seek out a cash for annuity transaction as a way to immediately put a lump sum of money into their pocket.
Not sure where to get started with your annuity cash-out? To help you understand the process more thoroughly, here are three of the most commonly asked questions about seeking cash for annuity in the United States:

What is an annuity?

By definition, an annuity is a contract made between you and your insurance company, in which you make a one-time payment, or series of payments, that will be paid back to you in regular disbursements sometime in the future. You can set your annuity payments to be disbursed to you over a pre-determined span of time — 25 years, for example — or have the payments continue until your death.
Annuities are a great option for those who will be retiring in a few years. This is because they can provide a steady source of income throughout one’s retirement. Additionally, the money in your annuity can grow over time on a tax-deferred basis, making this a great investment option for the future.

Can I sell my annuity?

Like 401(k) contributions, the funds you put into your annuity can only be withdrawn without receiving a penalty after you reach 59.5 years of age. However, if you are still in your 30s or 40s and want to get out of your annuity now — whether you’ve decided an annuity isn’t the right choice for you or you’re experiencing financial hardship — you may be able to sell your annuity and get back the cash you put into it.
As long as your annuity isn’t contained in an IRA or 403(b) or 401(k) account, you can usually sell your annuity for cash on the secondary annuity market. In many cases, you can actually receive a lump sum comprised of a portion of each annuity payment while still receiving the payment itself later on — just at a reduced sum. For example, if you’ve set up a monthly annuity payment of $4,000 that’s been set to continue for another 20 years, you can sell your right to half — $2,000 — of each payment in exchange for a lump sum. You’ll still get all the money you put into your annuity, but you won’t have to wait 20 years to get it.

How do I get cash for my annuity settlement?

Selling an annuity settlement for cash can be an intimidating prospect, especially if you’re not accustomed to complex financial transactions. But don’t worry — with this six-step guide to selling your annuity, it will be easier than you thought possible to get cash for annuity:

Step 1: Thoroughly read your annuity contract

Before initiating the process to sell your annuity, it’s important to read through the contract you signed with your insurance company. You will want to pay attention to the full disclosure clause, in particular. Be sure you’re selling the right portion of your annuity payments in exchange for the lump sum payment you’re seeking out.

Step 2: Find out how much you can withdraw without penalty

In some cases, your contract may actually allow you to withdraw cash from your annuity without incurring a penalty. If you’re permitted to withdraw up to 5% per year without penalty, for example, you’ll be able to take out $10,000 from a $200,000 investment.

Step 3: Understand the cashing-in process

Before agreeing to exchange a portion of your annuity for cash, understand the process used to give you a lump sum in lieu of structured, regular payments. Do your research on the cash for annuity process, and seek out legal help if you feel you need it.

Step 4: Choose the right cash for annuity company

It’s important to choose the right secondary annuity company while seeking cash for your annuity. Some companies will give you 60% of your annuity’s worth, and others as much as 85% — you’ll obviously want to go with a company that will give you a higher percentage. The best cash for annuity companies follow all legal standards and procedures, and will walk you through every step of the process.

Step 5: Seek legal consultation for all documents

It’s time to finally get cash back from your annuity — but before signing the final agreement, review all documents with an attorney to ensure the procedure is being carried out correctly and in your best interests.

Step 6: Get cash back for your annuity

Once you’ve signed the agreement to get cash for your annuity, you’re finished! You’re now able to enjoy the increased financial security that a cash for annuity agreement can provide, and will likely still get to enjoy an annuity payment once you reach retirement age.

Conclusion

It shouldn’t have to be difficult to get the money you want out of your annuity or structured settlement. When you follow the aforementioned steps, selling your annuity can be a quick, easy and ultimately successful process that will put money back in your pocket.