Cash For Annuity Payments

Written by Michael Federico
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Many people are under the impression that it is illegal to receive cash for annuity payments. This misconception stems from the fact that insurance companies cannot alter those payments in any way. However, a person can go to a settlement broker, a buyer, or a banking or investment firm to receive cash for annuity payments.

If an annuity pays out over 10 years, it can serve as a steady source of extra income for many people. However, there are times when a person would benefit more from the payments if he could receive a larger portion of the total in one payment. If a person has a wedding to pay for, a car to buy, or he desperately needs to get out of debt, he will often see future payments as being too little, too late. It is not required that a person sell all his future payments. He can simply sell those that will allow him to take care of his immediate financial needs.

Getting Court Approval for Annuity Payments

Selling off annuity payments is not difficult, but it isn't a simple transaction, either. Federal law requires court approval for most structured settlement sales, and most states have passed statutes that have put this law into effect. However, if the sale is legitimate, the payments are guaranteed, and both parties agree to the terms, court approval can usually be obtained without too much trouble.

A person can receive money for sold payments within a matter of weeks. If he only sells a few payments, he can get, in a way, the best of both worlds. The cash received will allow him to cover any large expenditure that needs to be taken care of, but he will still have money coming to him in the future.

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