Looking for instant cash to overcome the financial problems? Sell your annuity and receive handsome amount in your hand! Sell annuity and fulfil your instant cash demands! Sell annuity and meet your financial troubles easily!
Selling the annuity and structured settlements for cash are best and more popular options during the recession. Most of the financial advisers recommend against cashing in annuities and structured settlements. Selling off the annuity is the attractive way of getting instant cash. Structured settlements are attractive as they provide tax-free income for life and lump sum money as and when you need.
It is not that you need cash in emergencies, but you may need it on a regular basis in the future. For this the best option available is to have structured annuity that can help you get regular cash in your hand periodically, say monthly, quarterly, etc. Such regular receipt of cash can help you pay tuition fees, medical bills, and other day-to-day expenses in the future when there will be no income source for you. It will be easier for you to make significant costly repairs of your home by receiving lump-sum amount as and when you need.
Selling structured annuity is thus helpful by providing monetary assistance periodically and in emergency situations. Well, selling off an annuity can cost you the surrender charges of up to 10 percent. If you sell the annuity before 59 and ½ can trigger the federal taxes and penalties. Though these are the two downsides of cashing your settlement, it offers helping hand in emergency conditions.
Americans have a great deal of money tied up in structured settlements and annuities. According to the National Structured Settlements Trade Association, at the end of 2013, there were 34.8 million individuals deferred annuity contracts. J.G. Wentworth is one of the world’s largest buyers of structured settlement payments and annuities. More than $2 billion in payment transfers it handles between 1994 and 2009. The chief marketing officer Ken Murray, in 2009 said that the company had been a steady increase in customer inquiries following the economic downturn. Despite of the economic conditions, people always look to sell annuities, structured settlements as well as lottery winnings.
Due to the nature of the business, the buyers of the payment usually see to have some sort of financial predicament. Apart from need of cash due to recession, there are some new reasons when people decide to sell the annuities and look for settlements. This may due to loss of the jobs, increased mortgage payments, etc. as per Murray.
Though selling annuity is very simple and can be completed with very few steps, it is a court controlled process and comes at the discretion of a judge. The regulatory framework made it compulsory that every single transaction should go before a judge who must decide whether the transaction can be moved forward for cash or not.
It is must for the structured settlement holder, the payee to prove that they have a legitimate cause for selling annuity. They should prove that they have a legitimate need for the money and should calculate the pay-out amount that they are requesting.
The payee cannot turn the structured annuity into cash simply as he or she wants the money for any reason. It is not simple to turn annuity into cash for new car, going for a nice vacation or having an RV to tour the country. It is necessary to follow the procedure properly and should be done as per the law. Most of the laws also require that the transfer of the settlement rights be in the best interest of the payee.
Procedure For Turning Annuity Settlement Into Instant Cash
When a structured annuity holder needs money, it is recommended to call for the agent. The agent or the team will review the settlement, the circumstances as well as the reasons behind applying for annuity settlements. If they decide to move forward, they offer the payee an upfront sum of surrender the stream of payments, along with the discount rate. The discount, such offered ranges between 6 percent to 29 percent and can be comparable to the interest you would pay on loan. Well, lower the discount, better are the deals. As a annuity settlement holder, you can negotiate and can look for another agent for getting the best deals on annuity settlements.
Once the deal is adopted, the agent or the company file a petition for transfer of the structured settlement in court in the state where the company is in. The judge is the final arbitrator of whether to approve the application or not. The rulings are made depending on the reasons for cash requirements, the discount rates offered and the structured settlement company’s reputation.
The procedure of turning annuity settlement into cash may vary from state to state and depends on the jurisdiction. Well, the time or the duration of the settlement may take as little as 62 days or as long as 90 days, as per Collins.
As per David Lewis who is a senior vice president and general counsel with Stone Street Capital LLC, few people sell their entire annuity at once. While, payees sell a portion of the annuity settlements they have, just to meet their financial needs. Lewis says, there are several many factors that go into determining the payment amount such as the state in which the payee resides, the payments they wants to sell and the size of their payments.
Lewis specifically points to insurance companies that have seen their credit ratings downgraded. The cost of capital and the funds have also gone up. As per Lewis, the developments throughout the credit markets also have big significances in the structured annuity settlement industry.
Annuity settlement is one of the great way of making cash for financial needs. Well, it needs to follow proper procedure and law to make it simple and easier. It may take 62 days to 90 days to get cash in hand depending on several circumstances. This is one of the great way for those who need money in urgencies in the future, provided the procedures are followed properly and in the right way.