Purchase Annuity Payments

Written by Jacey Harmon
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Businesses purchase annuity payments to provide immediate cash in exchange for future payments. There are a variety of different annuities that can provide payments that can be purchased. Lottery annuities, investment annuities, and structured settlement annuities all provide payment streams that can be bought by third parties.

Annuities can be great vehicles in the right situation, but once an annuity is accepted or purchased, they are very restrictive. Premiums invested into personal investment annuities cannot be withdrawn without paying penalty fees and taxes. Once a structured settlement annuity is accepted, the terms of the agreement are binding and cannot be changed. If an annuity is converted into a payment stream, the funds are locked up and the annuitant only has access to the payments.

On many occasions, individuals accept or purchase an annuity without knowing all the exact rules and regulations. They may not realize that once the money is invested into an annuity, it is all but impossible to get it out again, even in dire situations. Oftentimes a person is sold an annuity by a financial advisor or insurance salesmen even if it is not the right product for their needs. This is because most annuities offer higher commissions than other investment products like mutual funds or Certificates of Deposit (CDs).

Entrepreneurs to the Rescue

Thankfully, for those that need to access the funds in their converted annuity, entrepreneurs have recognized this need and provide a viable option. They will offer a lump sum of immediate cash in exchange for your future payments. This can be a blessing, especially if you need the cash for a medical emergency or other immediate need.

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