What are your present payments like? The first thing you need to know is if the cash you’re going to get by selling annuity payments is worth losing your payment stream. If you have are in serious debt and facing bankruptcy you might want to consider selling annuity payments. However, if you’re doing it just for the sake of getting cash, it is better you don’t sell because you will lose a portion of the payments to the company that buys it from you.
How much do you want to sell?
There are three ways to sell annuity payments. First, you could do a full sale were you sell the entire annuity and leave nothing for future payments. Second, you could do a partial sale in which you sell a certain number of payments for a lump sum, and thirdly there is a split sale in which you sell half of your annuity payments.
What’s the discount rate?
Any company that is going to buy annuity payments is looking to profit from the purchase. Most companies will give you a discount offer of 8% to 14% your lump sum payment. Any discount higher than 14% is a rip-off.
To whom are you selling?
Knowing who will be buying you annuity is a must. There established companies with years of experience like Woodbridge Structured Funding and companies are new to the business. It is important to research and evaluate each company to make sure which ones are legitimate.
What are the terms of service?
Lastly, what are the terms of service? Buying and selling annuity payments is an unregulated industry. This gives scammers and frauds many opportunities to take advantage of those selling annuity payments. Protect against these unscrupulous buyers by having a lawyer review the terms of their services.
