What to Look for in Annuity Buyers
People who are awarded large sums of money from court settlements are often paid with structured payments through an annuity. This annuity is also referred to as a structured settlement. The party paying the award buys an annuity policy that will pay the award out over a specified period of time.
While this can be advantageous for the recipient of the award because it’s a guaranteed stream of income over time, it also prohibits the ability to use all settlement money freely and at your discretion. Many recipients need larger amounts of money than what the annuity provides monthly. Large expenses from medical emergencies, school, vehicle problems, or just issues with paying bills often require a substantial amount of money and it’s convenient to have full access to structured settlement monies.
The good news is that there are annuity buying companies out there that will pay a lump sum in exchange for one’s future annuity payments. The annuitant may, with approval of the court, sell all or a portion of his annuity and the annuitant can use that money for whatever is necessary.
3 Things to Look For In an Annuity Buying Company
There are many annuity companies that purchase annuities and structured settlements. What factors should be taken into consideration when choosing a company? First, find a reputable annuity buying company that has been in business for several years and has a track record of buying annuities. The process is pretty straightforward but like any other legal processes there are details that require experienced people and you want to choose a reputable annuity buyer. Annuitants want to choose a company that is well rated and respected in the industry. Check the ratings from the Better Business Bureau, consult the Chamber of Commerce where the business is located, and do research on the internet. A strong Better Business Bureau rating is often a good sign you are in the right hands.
Payouts for annuities can vary so the annuitant should choose the company that offers the highest payout possible. More than one quote should be obtained and a company should be chosen based on amount paid, its history, and reputation. Before agreeing to any purchase the annuitant must obtain all disclosures and information from the annuity buying company.
When Does The Money Arrive?
Annuity buyers advertise the process as easy and the annuitant will receive their money quickly, but the annuitant must keep in mind the purchase has to get a court approval. The purchase is rarely denied, but the process can delay the annuitant receiving his money. Check with your annuity buyer on a realistic timeframe and have them map out all the steps involved so you have a realistic timeline.
Annuitants Shouldn’t Be Confined to a Fixed Income
Annuitants who need money may find selling their annuity to be the best solution to financial difficulties. They don’t have to worry about qualifying for a loan, incurring interest charges, or having to borrow from family or friends. Plus, if they want to keep a portion of their guaranteed income they can sell just a portion of their annuity.
To contact an annuity buying company, Call Woodbridge Structured. 866-865-7044 or fill out a contact form.