Sensible Secrets to Selling Annuity
Annuities are big business. In the current economic climate they have survived and thrived. There are good and appropriated uses for annuity, but for many it is not an ideal product. For those who are in financial trouble or are looking for money and unable to afford loan-repayments, there is a solution. Selling annuities will result in a one off payment and will allow you the flexibility to use the money instantly for what you need. “How do I sell my annuity?” I hear you ask!!
Here are some of the secrets that could help you guarantee an easy sale and boost the amount of money you receive.
Do you understand the process?
In return for your lump sum, you are signing over all your rights to receive any future payments. These instead will be paid to someone else; the very person who is giving you the money. Your annuity will always be worth more if you continue to receive structured payments. However, talking to your insurance agent and calculating the worth of your annuity will allow you to take control of the situation and negotiate with the potential buyers. Decide how much money you need/want before you begin these negotiations and stand your ground. There are numerous companies who specialize in buying annuity and as long as you are asking for a realistic amount, no more than 85% of its face value, you will always find a company who is interested in buying.
Is your research thorough?
It goes without saying that you need to research companies before you begin your negotiations. Most authors advise you check all companies with the Better Business Bureau before proceeding any further with quotations. I agree wholeheartedly with this, but I believe the secret is to do a little more digging. Talk to family members and friends and see if they have dealt with a company who specialize is purchasing annuities. They may even have the name of a buyer they have dealt with first hand and this could result in a saving for you; especially if you offer to pass on a good word as your friend/family member has done. I would also suggest talking to a financial adviser who may be able to suggest a reputable company, or for a small fee do the negotiating for you. Paying for an adviser may seem like a waste of money, but if they can guarantee you 75% instead of the 68% they had previously offered you. The money you make will easily cover their fee and boost your lump sum.
Are you playing it safe?
Everyone wants to make as much money as they can from selling their annuity, but have you considered a partial sale? Most annuities do not require you to sell all of it. And so, if you only need a small amount you could decide to sell a designated portion to a company of your choice and keep the rest for further payments in the future. The company who buys your annuity will still make a profit; you will receive some immediate cash and will still receive a future income which may be of benefit if any financial trouble were to arise. It would be a win-win situation and would guarantee you more money in the long run!
Author Biography
Mark Long is a financial consultant who provides advice for those selling annuity. His in-depth knowledge and honesty has led to the publication of many articles including “How to sell my annuity: a short introduction”.
Share this:
Category: Insurance
