Selling Your Annuity Payments to JG Wentworth

Purchasing an annuity is a great way to secure steady income down the line. But life happens, and sometimes you need your money now, not later. If your money is trapped in an annuity fund, JG Wentworth may be able to help!

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Selling annuity piggy bank illustration

What is an annuity?


Put very simply, annuities are an insurance product designed to secure a fixed income stream, either immediately or in the future.

    However, instead of withdrawing your total accumulated annuity fund as a lump sum, as you might with a 401(k), you will start to receive regular, fixed payments, beginning at the time you agreed upon when signing your contract. This is called the annuitization phase.

    Here’s how annuities work:  when you purchase an annuity contract from a financial institution, you either provide a lump sum upfront or make periodic payments. This is called the accumulation phase. The cash you contribute to your annuity is invested into an annuity fund, gaining value over time—much like how a 401(k) or 403(b) account works.

    You do not have to be at retirement age to receive your annuity payments, but people typically purchase an annuity with retirement in mind because it can help assuage fears of outliving your savings. But annuities are not to be confused with pensions, a benefit an employer may offer that requires you to reach retirement age before you begin to receive payments. Pension benefits are becoming increasingly uncommon, so annuities are an appealing option to those who want to receive regular payments in retirement.

    Selling vs. withdrawing from an annuity



      One of the biggest cons of annuities is that their funds are illiquid, meaning you can’t simply convert them into cash when you need it.


      For instance, most annuities have a surrender period during which you can't make withdrawals without paying a fee—and that surrender period can span years. While many companies do allow you to withdraw up to 10% of your annuity account value without paying a fee, if you need to withdraw more, you will likely have to pay a significant penalty—even if the surrender period is up!



      To avoid complicated, expensive fees and penalties many annuitants opt to sell their payments to companies like JG Wentworth. This allows them to skirt around the illiquidity of their annuity assets and get their cash on their terms, when they need it.


    How does selling my annuity work?


    Selling your annuity payments is relatively simple! Here’s the basic gist:


      Call to get a quote

      When you call us with an idea of how much cash you need, our representative determines your eligibility to sell and provides you with a quote.


      Complete and submit your paperwork 

      Once you accept a quote, you’ll be asked to sign and return a contract to us confirming the terms of your agreement. From there, your JG Wentworth team will handle any paperwork necessary to complete the transaction.


      Receive your lump sum!

      We can pay you via wire transfer, direct deposit, or check— whatever you prefer. Yep, it’s that easy.

    debt solutions

    Call us today to hear a quote for your annuity payments.

    When you sell a portion or all of your annuity payments, the purchasing company will give you a quote based on the future value of your payments, factoring in the cost of inflation over time. Rates may vary depending on a variety of factors, including, but not limited to the size of your payments and the length of the payment stream. We will work with your insurance company to ensure the proper paperwork is filed, which typically takes around four weeks. If you need cash immediately, call us today and ask about your advance options!


    Types of annuities

      Often purchased by people who have a lump sum of cash that they would like to convert into steady payments over time. As the name suggests, payments start almost right away.

      Set up to grow and disburse on a tax-deferred basis. Although typically these annuities are structured to ensure income during retirement, you can choose the age that you would like your disbursements to start.

      Provide you with regular, periodic payments. Can be paid for the rest of your life or for a defined time period (e.g., 10, 15, or 20 years).

        An annuity plan that has been purchased with after-tax funds. There is no limit on how much you can contribute to a non-qualified annuity, and since your contributions have already been taxed, you cannot be taxed again on your premium payment(s)—only on accumulated earnings.

        A tax-advantaged annuity that is purchased with pre-tax dollars, such as rolled-over funds from a 401(k) or 403(b) plan, a traditional IRA, a Simplified Employee Pension plan, or other tax-exempt savings plans. You pay taxes on any disbursements from this type of account.

        Allow you potentially to receive larger future payments if the investments in your annuity fund do well—and smaller payments if your investments do poorly. This is less stable than a fixed annuity, but if your returns are high, you reap the rewards.

        Man looking at options for selling annuity illustration

        Why should I sell my annuity payments to JG Wentworth?


        Annuity agreements are meant to provide some stability in your life—but sometimes, life has other plans. Maybe you’ve had a costly medical emergency, or your basement has flooded, or you’ve accumulated an untenable amount of debt. If you have a major expense to take care of and don’t have liquid cash to pay for it, selling a portion or all of your annuity payments for a lump sum is an excellent and popular option.


        With over 30 years of experience as a leader in the financial services industry, JG Wentworth employs hundreds of meticulously trained representatives who excel at finding solutions for everyday people experiencing financial hardship.


        Here’s what we offer:

          Best Price Guarantee

          A+ Rating from the Better Business Bureau

          Over 3,000 Five-Star Ratings on Trustpilot

          Streamlined Service and Excellent Communication

          Absolutely ZERO Hidden Fees

        Selling Annuity FAQs

          An annuity is a contracted financial product that provides fixed payments over a defined period of time, often used for retirement income. Common types include structured settlements from legal claims and lottery winnings.

          Many people choose to sell their future annuity payments for an immediate lump sum of cash. This allows them to access the value tied up in the annuity stream for things like paying off debts, making a major purchase, investing, or supplementing retirement income.

          You can sell all or a portion of your remaining future annuity payments to a company like JG Wentworth. They provide a lump sum cash payment today in exchange for the rights to receive your designated annuity payments in the future.

          Many types of annuity payment streams can be sold. We will need to review your paperwork to determine if we can purchase your payments.

          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.

           In most cases, no - once the transfer of your payment rights is complete, the sale is final. However, companies often have a cancellation period built into their contract. You should consult with an attorney if you have questions regarding the sale of your annuity payments.

            No, selling provides a discounted present-day value versus the total future payments. This accounts for fees as well as giving the purchasing company a profit for providing the upfront cash.

            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.

            It is often possible to sell your annuity payment stream for a lump sum. But you'll need approval from the issuing entity for the transfer.

            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.

            Sources Cited


            1. Kagan, J. (2022, March 7). What is an annuity? Investopedia. Retrieved from
            2. Thakur, M. (n.d.). Pension vs annuity: Top 7 differences you should know. EDUCBA. Retrieved from
            3. Impact Partners. (2018, February 9). Where did all the pensions go? Forbes. Retrieved from
            4. Turner, T. (2022, April 29). Qualified vs. non-qualified annuities: Taxes & RMD. RetireGuide. Retrieved from

            Sales of Annuity Payments are subject to insurance company approval and other conditions which can take approximately 30-60 days to complete.

            All transactions are at JG Wentworth’s sole discretion. JG Wentworth does not provide legal, financial or tax advice.