How To Sell Annuities - Step-By-Step Guide

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The process of selling an annuity or a settlement is not overly complicated, in fact, it's quite a simple process from start to finish.

Step One: Are You Ready To Sell Your Annuity?

The decision whether or not to sell your annuity is not one that you should take lightly. This is a significant financial decision. You can sell your entire annuity or just a portion of it. In most cases, it is wise to sell, so you continue to receive monthly payments.

Next, what is the reason you want to sell your annuity? There are many reasons typical people sell. Here are a few:

  • Buying a new home.
  • Remodeling or repairing an existing home.
  • Paying for college or a technical school to obtain a degree for a promotion at work or for a better career option to provide for your family.
  • Starting a new business or fund an existing private business.
  • Pay for past medical expenses or a vital medical procedure.
  • Pay off high-interest debt which is causing stress.

Step Two: Research the Best Annuity Company to Handle The Sale

Doing your due-diligence is vital as this is an important decision on your part. You can't just open up the Yellow Pages and point to a company and call them ... wait, it isn't the 90s anymore. Even still, performing an internet search in Google and clicking on a result and going with the first company you contact isn't the wisest move. This is your financial security at stake. You must make the right decision not just for you, but for your family as well.

Knowing the critical information can significantly help you make the right decision.

Discount Rate: This is the amount the company is going to charge you to sell your annuity. Either the entire annuity or just a portion. The amount varies but usually is between 8-14% of the amount you are selling. This is information which should be disclosed to you upfront when discussing the sale. If you ask and you are told, "we can discuss that at another time" or all the fees are not disclosed to you, you might be wise to end the call and contact another company. You should never be surprised at the end of the transaction.

The Offer: When it comes to getting an offer, the amount that is quoted to you should be the total amount you will receive after ALL fees and costs are paid. Some companies will give you a quote BEFORE the fees are paid. Be careful as you might accept an offer that seems to be higher, but then the fees are more, and you end up with less cash. That would NOT be good.

Our recommendation is Pacific Annuity (Cash for annuity). Not only do they have a guarantee of the best cash offer, but they also have some of the lowest fees in the industry. Add to that they also offer an excellent service where the person you first talk to stays with you through the entire process, so you don't have to repeat yourself everytime you call. One-point of contact is a huge stress reliever, especially when you are dealing with a sensitive financial transaction. Also when you call you won't be connected to a front-line receptionist, instead, you will be directly connected with an annuity and structured settlement specialist.

Step Three:Call Pacific Annuity For Your Free, No-Obligation Quote

Understand that when you call Pacific Annuity, you won't be calling a front-line receptionist, you will be calling a qualified annuity and structured settlement specialist who can assess your current situation and advising you correctly. When it comes to outlining the course of action for you to take, both your current and future financial situations will be taken into consideration.

If you have your annuity information, including the name of the company and the account number, that is most helpful to verify the account so an offer can be made to you quickly.

Step Four: Receive your Free, No-Obligation Quote.

Once all the information is received about your annuity, and the options are decided and agreed upon, including the amount of the annuity you are going to sell, you will receive your quote. If you have any questions about the offer, you will have your point-of-contact's information.

Step Five: Choose The Best Option

In most cases, you will receive multiple quotes based on differing approaches which the representative discussed with you on the phone. There are many scenarios and it always best to take time to think about the best one for you and if you have a significant other, to talk to him or her about it. Since the quotes are in writing, it makes the process of making a decision easier and the representative is always just a phone call away should you have more questions.

Step Six: Accept The Offer And Sign The Documents

Simple enough, sign the offer and the appropriate documents as directed by the representative.

Step Seven: The Insurance Company Approves of the Policy Holder Change

Once you sign the agreement, it is sent to the insurance company for them to approve and make the changes on their end. Once they process the changes, it is just a matter of days until you receive your money.

Step Eight: Your Money Is Sent

Once official approval is received from the insurance company who is in charge of your annuity, the transaction is complete. You can receive your cash in as little as three (3) business days. You can choose to either receive your funds through wire transfer directly to your bank account or by a physical check. It is your choice. After all, it is your money.