How to Find a Buyer for Your AnnuityAlthough an annuity is meant to provide steady income, particularly when you retire, [1] there are circumstances when you might want to find a buyer for your annuity. Some people decide to sell their annuity in order to buy a home, invest in a business, or to cover a sudden emergency situation.Method 1 of 4: Is Your Annuity Transferable or a Structured Settlement?Determine if your annuity is transferable. If your annuity is not transferable, then you cannot sell it under any circumstances. (If you need to sell your annuity because you need immediate cash, the best you can do with a nontransferable annuity is list it as an asset or form of income and apply for a regular bank loan.)Determine if your annuity is a structured settlement. Most states have laws that protect people who want to sell their structured annuity. If your state has a Structured Settlement Protection Act, [2] your transaction will have to be approved by a state court (this is to ensure that your best interests are protected.)Evaluate your annuity. Before you shop around for annuity buyers, find out what the resell value of your annuity is. All annuities offer tax-deferral from the time of your initial investment, but your distributions are taxable, so take that into consideration when you are considering selling your annuity.It’s best to seek advice from an expert. Annuities are complex legal documents; if you are fuzzy on the details of your investment and its relative worth, you probably won’t get a fair price for your annuity.Search for an annuity buyer. You can ask your insurance agent for recommendations and you can search online for reputable companies. You can conduct an initial search at no cost:Visit websites that offer to buy annuities. Use their quote form to get a quote from them. You will have to give your name, email address and the name of your annuity, but that’s all the personal information you will have to give in order to get a free quote—and remember the quote is just that; you may not actually receive that amount, or the quote may not disclose the fee that will be deducted from the settlement when the transaction is completed.Try to obtain offers from at least five companies before you decide who to sell your annuity to. If you sell it yourself, you won’t incur any fees, but it is highly advisable to hire a broker to sell your annuity for you. You’ll have to pay a brokerage fee, but a professional can negotiate a good price and make the best deal for you.Understand that the buyer stands to gain. A company that buys your annuity is doing so as an investment. They aren’t in business to do you a favor; they will look at the particulars of your annuity and decide if it is profitable for them to keep your initial investment in the annuity and accrue the interest for themselves. (A fact you should
How to Find a Buyer for Your AnnuityAlthough an annuity is meant to provide steady income, particularly when you retire, [1] there are circumstances when you might want to find a buyer for your annuity. Some people decide to sell their annuity in order to buy a home, invest in a business, or to cover a sudden emergency situation.Method 1 of 4: Is Your Annuity Transferable or a Structured Settlement?Determine if your annuity is transferable. If your annuity is not transferable, then you cannot sell it under any circumstances. (If you need to sell your annuity because you need immediate cash, the best you can do with a nontransferable annuity is list it as an asset or form of income and apply for a regular bank loan.)Determine if your annuity is a structured settlement. Most states have laws that protect people who want to sell their structured annuity. If your state has a Structured Settlement Protection Act, [2] your transaction will have to be approved by a state court (this is to ensure that your best interests are protected.)Evaluate your annuity. Before you shop around for annuity buyers, find out what the resell value of your annuity is. All annuities offer tax-deferral from the time of your initial investment, but your distributions are taxable, so take that into consideration when you are considering selling your annuity.It’s best to seek advice from an expert. Annuities are complex legal documents; if you are fuzzy on the details of your investment and its relative worth, you probably won’t get a fair price for your annuity.Search for an annuity buyer. You can ask your insurance agent for recommendations and you can search online for reputable companies. You can conduct an initial search at no cost:Visit websites that offer to buy annuities. Use their quote form to get a quote from them. You will have to give your name, email address and the name of your annuity, but that’s all the personal information you will have to give in order to get a free quote—and remember the quote is just that; you may not actually receive that amount, or the quote may not disclose the fee that will be deducted from the settlement when the transaction is completed.Try to obtain offers from at least five companies before you decide who to sell your annuity to. If you sell it yourself, you won’t incur any fees, but it is highly advisable to hire a broker to sell your annuity for you. You’ll have to pay a brokerage fee, but a professional can negotiate a good price and make the best deal for you.Understand that the buyer stands to gain. A company that buys your annuity is doing so as an investment. They aren’t in business to do you a favor; they will look at the particulars of your annuity and decide if it is profitable for them to keep your initial investment in the annuity and accrue the interest for themselves. (A fact you should
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