The process varies, but typically takes around 2-3 months from starting to receiving your lump sum. This accounts for the purchaser valuing your payments, getting insurer approval, finalizing paperwork, and funding your lump sum. More complex arrangements may take longer.

Yes, the lump sum you receive from selling is considered taxable income. However, you were also going to pay taxes gradually on the original annuity payments. That said we are not tax professionals and so you should speak with your tax or financial advisor to better understand the implications of selling your annuity.

Companies estimate the present value of all your future annuity payments using market discount rates. This calculated value is then reduced by a percentage to account for built-in profit margins and transaction fees.

Yes, most companies allow you to sell just a set number of your future periodic payments instead of the entire remaining stream. This provides you with some lump sum cash while still retaining periodic income from the unsold portion.

People sell their annuity payments for many reasons, but the most common ones include covering unexpected medical bills, paying off debt, buying a home, investing in a business, or simply gaining more control over their finances. A lump sum today can be more useful than smaller payments spread over years.

When you sell your annuity, the buyer applies a discount rate to determine how much your future payments are worth today. This rate accounts for inflation, risk, and the buyer’s expected profit. The higher the discount rate, the lower your lump sum offer will be.

Pros:

• Immediate access to cash
• Flexibility to invest or pay off debt
• No more waiting for scheduled payments

Cons:

• You’ll receive less than the full value of future payments
• Could affect long-term financial stability
• May have tax implications

Selling your annuity can have tax consequences. While some structured settlements are tax-free, others—especially non-qualified annuities—may result in capital gains or income tax. It’s smart to consult with a tax advisor before proceeding.

You can typically get a free, no-obligation quote within 24 to 48 hours after providing your annuity details.

Once your sale is approved by the court (required in most cases), you can usually receive your lump sum within 30 to 60 days from the time of agreement. Some cases may move faster depending on the state.

Most reputable annuity buyers don’t charge upfront fees. Instead, their profit is built into the discount rate. Always read the fine print and ask for a breakdown of any costs.

You generally can’t sell:

• Social Security benefits
• VA benefits
• Workers’ compensation payments (in many states)
• Some government pensions

Additionally, court approval is required to sell structured settlements and certain annuities, especially those involving minors.

The amount depends on:

• The total value and schedule of your payments
• The discount rate
• How many payments you choose to sell

On average, sellers receive 50% to 70% of the annuity’s total value. You’ll get an exact number after a personalized quote.

Yes—selling annuity payments is legal in all 50 states. However, structured settlements require court approval to ensure the transaction is in your best interest.

Yes. Consider:

• Taking a loan using your annuity as collateral (if allowed)
• Partial sales (only selling some of your payments)
• Refinancing existing debt to reduce pressure
• Speaking with a financial advisor to explore other strategies

You don’t have to sell your entire annuity. You can sell a portion of the payments or just specific years. This flexibility allows you to meet your immediate cash needs without giving up the entire future income.

It depends on your financial situation. Ask yourself:

• Do I urgently need a large sum of money?
• Will I have enough income afterward?
• Can I manage without future payments?

Speak with a financial professional before making a decision.

Courts are very cautious when minors are involved. You’ll need court approval, and the judge must be convinced it’s in the child’s best interest.

You’ll typically need:

• Your annuity contract
• A recent payment schedule or benefits letter
• Identification documents
• Contact info for the annuity issuer

Once the sale is complete:

• You receive your lump sum
• The annuity issuer redirects future payments to the buyer
• You no longer have rights to those sold payments

You can cancel at any time before the sale is finalized. After court approval and payment, the sale is typically permanent. Be sure you’re confident before moving forward.

In most cases, no. Annuities are usually paid upfront and don’t require ongoing premiums. However, if you’re still in a contribution phase, it depends on your contract.

Generally, no. Most government-issued annuities—like military pensions or federal retirement plans—cannot be sold or transferred.

Yes, if it’s a non-qualified annuity and not restricted by contract. If you’re the rightful owner and the contract allows for assignment or sale, you can pursue a lump sum.

We’re here to help. Reach out to us for a free consultation tailored to your unique situation.