18 Mar 3 Sources of Annuity Payments to Sell for Cash Now
Medical emergencies, car troubles, student loan payments — there are a variety of reasons one can find themselves in a precarious financial situation and in desperate need of money. In fact, about 20% of Americans between the ages of 18 and 24 describe themselves in a “debt hardship,” and 26% of Americans overall admit to not paying their bills on time.
What many people don’t realize is that they could be sitting on a large sum of money that’s technically theirs, but they don’t currently have complete access to — annuity settlements and subsequent annuity payments.
Annuity payments are those that are paid out over time, usually on an annual basis. While this long-term, slow trickle of income can be a reliable source for people in fixed-incomes, or stability in their finances, having the money available to them immediately would be much more advantageous for their current situation. There are many ways to come into annuity payments, but here are three of the most common you should think about selling to get cash for annuity payments now.
- Insurance Claim: Whether it be from a workers compensation case, personal injury claim or something else entirely, insurance payouts are often negotiated through an annuity model. One of the biggest issues with annuities is that if you try to withdraw some of your funds early, they will slap you with a fine that can be 7% or more.
- Lawsuit Settlement: Courts constantly utilize annuity payments in order to provide restitution to a damaged party when the damaging party doesn’t have the financial means to pay for expenses up front. While this can be a good way to secure money from someone who would otherwise not be able to pay, you can still sell the annuity to us so you can get cash immediately.
- Lottery Payout: Lotteries also commonly use annuities to pay their winners. For example, the Mega Millions annuity actually increases over time, by about 5% every year. It is paid out as one immediate payment followed by 29 annual payments. Lottery officials will let you decide when you collect your winnings if you want a lump sum versus annuity payments, but if you decide you change your mind after picking the annuity, we will buy it from you and give you the cash you need.
Annuities can be a nice luxury, but if you’re in trouble today, cold hard cash now is what you really need.