Sell Annuity Payments

Written by Michael Federico
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Selling annuity payments has been seen as a controversial practice over the years. Many people in the past were under the impression that it was either illegal or that legitimate firms were not in the practice of buying settlements. There is a federal law requiring the sale of structural settlements to be approved by court order, and thousands of approvals take place each year.

The mistrust many people have for firms that buy annuity payments is not wholly unfounded. A number of buyers offer extremely low rates on purchases. In essence, they take advantage of people who need cash fast by buying out the majority of future payments for relatively little money. However, there are annuity buyers that pay top dollar. Spending time researching buyers will end up making a huge difference in the end.

Sell Annuity Payments at High Rates

Different companies base their rates on different criteria. The amount of the annuity and the date that it is sold will be considered by almost any buyer. Some companies, though, look at the S&P rating of the company that is guaranteeing the future payments. A good S&P rating can definitely affect the amount of money a person will receive.

Just because an annuity broker has a formula it uses to come up with a fair rate doesn't mean it will use it. Many companies will project a high rate only to cut it in half when making an offer. Getting quotes beforehand and comparing rates of buyers is something everyone who plans to sell annuity payments should do.

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