Everyone can use some extra cash in their life, and the fixed payments you’re receiving from an annuity are probably not enough to protect you from the unexpected. If you have an annuity and need extra cash now, you should strongly consider selling your annuity for a huge lump sum.
Before you actually sell your annuity, it’s important to understand how your lump sum will enhance your quality of life. Many people carry the heavy burden of debt on a daily basis, and the interest you pay on these debts can really add up over time. The average U.S. household credit card debt currently stands at a whopping $16,140, and the average American has about $1,766 in overdue medical debt. Student loan debt is also a major source of financial strife for Americans, and the typical class of 2015 graduate will have to pay back a little more than $35,000 in student loans.
Once you learn how you can benefit from selling your annuity, you’ll need to determine its surrender period. A surrender period is the period of time after initial purchase of your annuity in which you will be charged a considerable fee for cashing out your plan. A surrender period can be anywhere from 5-10 years after purchase of the annuity, but most tend to be between 6-8 years.
After you’ve figured out the details of your surrender period, it’s time to find an experienced company to buy your annuity. While the company keeps a portion of the sale for itself, most will offer between 60-85% of the annuity’s value when quoting you for a lump sum. You’ll then need to complete the selling process by receiving approval from a court. After choosing the right company and filing for court approval, the process of selling an annuity usually takes between 30-90 days.
When the dust finally settles and you receive your lump sum, you’ll likely be quite pleased with your decision. In fact, 92% of people say that they are satisfied after selling their annuity, and for good reason. The financial freedom you’ll obtain by selling an annuity will allow you to eliminate debt, cover increased living expenses, and live the comfortable life that you deserve.