Annuity Buyouts

Written by Michael Federico
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Annuity buyouts serve as a way for certain people to get a substantial amount of money in a short period of time. Technically, an annuity is any investment result that is paid out on a regular basis over a set period of time. Many court settlements, including those given in personal injury or wrongful death cases, are paid in this way. Lottery winnings, contest awards, and inheritances often include periodic payments, as well.

Many people who receive structured payments lament the fact that they cannot get a substantial portion of the total payment at once. They are under the impression that once a payment plan is set, it cannot be altered. This is not true. Insurance companies cannot change annuity payments, but there are investment firms and settlement brokers that will buy future annuity payments. For instance, if a person is set to receive $5,000 per month for 60 months, he can receive a lump sum for selling some of those payments.

Getting the Most from Annuity Buyouts

The actual worth of future payments depends on several things. The amount of the payments, of course, plays a part. However, the date that each payment is sold and the Standard & Poor rating of the companies guaranteeing the payments are also taken into consideration.

The amount of money a person gets from an annuity buyout will be greatly affected by the company doing the buying. Many companies will simply offer sellers the lowest amount they possibly can. Often, people who need the money will take whatever is put on the table. However, some firms will do their best to give a person the highest rates possible. Finding an annuity buyer can, in some ways, be like finding a mortgage broker. A person should get as many quotes as possible and research the services that each company provides before making any decisions.


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