How to Sell an Annuity
Purchase an annuity for income over a period. You pay a lump sum or fixed sums to the insurance company for a guarantee of payment starting now or sometime in the future. Annuities guarantee payments for your lifetime or a fixed period beyond your lifetime. Sell your investment if something happens causing you to need your money now.
Decide the terms that you want for selling your annuity. You can sell your investment in full or sell some of the future payments.
Pick a company that buys annuities. Shop around and compare prices and terms. Choose the most favorable terms for your situation.
Check Prosperity Partners, Inc. (PPI) for a complete list of required documents for selling an annuity. Locate all of the documents before you hire the company to speed up the process of selling your annuity.
Ask questions before proceeding with the sale of your investment. Make sure you understand the terms. The cash you receive in a lump sum will be less than the payments you receive over time, so be sure you are ready to accept this lesser figure.
Present the proper documentation to the company. They will usually provide a form to fill out and a list of paperwork needed. You will need the annuity policy, copy of most recent check or check stub and two forms of ID.
Wait for the company to send you a check for your money. Annuities take several weeks to sell since the court must approve the sale. The company brokering your transaction will file the proceedings and keep you informed of the progress.
Tips & Warnings
Make sure you talk to a trusted adviser before you sell your annuity. There may be other options if you need money for a life change, so consider all options and weigh this decision before you make the sale.