There are many companies, such as CBC Settlement Funding, dedicated to purchasing annuities or structured settlement payments.
Selling an annuity can become one of the biggest financial decisions a person can make. Whether it’s to buy a new house, start a new business, or pay off student loans, selling an annuity can help to secure financial stability and alleviate debt. However, each seller should evaluate their annuity, reselling worth and reasons for selling before looking for an annuity buyer.
It’s also important to ensure potential annuity sellers are asking all of the right questions and conducting thorough research to find the best annuity purchaser. Finding the right company should result in competitive rates, fast results and a worry-free selling process.
Who Buys Annuities?
You can legally sell your annuity payments to any third party. In virtually all cases, sellers typically choose specialty finance companies like CBC Settlement Funding to handle their annuity transaction, ranging from retirement accounts to family trust funds. Other accounts annuity buyers can purchase include:
- a paid-up life insurance policy
- a retirement account
- insurance settlements
- structured settlements from successful lawsuits
- trust fund payments
Annuity buyers offer large lump sum payments to beneficiaries and recipients of annuities who need to cash in their periodic payments for a lump sum now. The lump sum payment is less than the total the beneficiary would have received by the end of the term — the amount the total is reduced by is called a discount rate — but it offers far more flexibility to meet immediate financial obligations.
Criteria of Quality Annuity Buyers
There is a large market for annuity sales and many companies specialize in purchasing annuities. Before deciding on an insurance company or buyer to purchase your annuity, there are a few key qualities to look for in your research. Reputable and successful companies should demonstrate qualities including:
A Genuine Interest in You and Your Success
You are still a customer and you deserve exceptional customer service. Great annuity buyers should make you feel comfortable rather than push you toward a transaction. They need to understand why you are seeking services and be able to help you explore all of your options so that you are able to make the best possible decision.
A Track Record of Success
As a customer, you want to make sure the companies you interview have ample experience and a positive reputation. Make sure you research how long a company has been in business, whether they have been licensed, and take a peek at customer testimonials.
Positive Ratings
Ratings count! Beyond looking at testimonials on a website, also check out review websites. Customers are honest and will often share their experiences. A great place to start is the Better Business Bureau. If the company you’re researching has poor ratings, remove them from your list.
Fast Results
Reputable companies should be transparent and able to provide you with tangible deliverables and fast results. You don’t want to waste your time or theirs. If they can provide you with fast quotes and go beyond the call of duty to invest in your agenda, that’s something to look out for.
Supportive and Knowledgeable Staff
Exceptional customer service is key. Annuity buyers need to be able to answer any questions you have on transactional fees, provide thorough knowledge on the selling process, guide you through paperwork, and discuss with you the next steps.
Ability to Provide Recommendations
You should not feel pressured to make such an important financial decision alone. Helpful annuity buyers should want to help you invest in your future, and will in turn provide you with all of your options and any corresponding recommendations. They should also suggest consulting with an accountant or financial advisor before selling to ensure your decision adds to your financial security.
Competitive Rates
Be sure to research transactional fees and interest rates for selling an annuity. Each company is different and may provide you with a number of quotes. Make sure the companies you research are giving you the most bang for your buck.
Questions to Ask Companies That Buy Annuities
Once you select an annuity buyer, your research shouldn’t stop. Continue asking questions once you’ve made contact with a customer representative. Asking questions can eliminate uncertainty and helps narrow down your options when selecting a buyer. Some of the questions you should consider including are:
- How long will it take to sell my annuity?
- What is your discount rate?
- What is your approval rate?
- Do you offer free quotes?
- Are your lawyers available to help me through the selling process?
- Are there any legal fees?
- Do you offer cash advances?
- Can I sell a portion of my annuity or do I have to sell all of it?
- What happens if a judge rejects my sale?
- How long will it take to receive my payments?
- What are the next steps?
It would also be beneficial to require company literature or a written document to confirm these answers. Make sure you have highlighted language to support all that’s been discussed and to ensure consistency. If what you hear is not the same as what you see, consider looking to another buyer or another company.
CBC Settlement Funding Will Purchase Your Annuity
At CBC Settlement Funding, our staff will take care of all the paperwork for you when you choose us to buy your future annuity payments. You may receive your annuity payout in a cashier’s check, or have the money transferred electronically to your personal account.