Even though an annuity is a long-term financial commitment, you aren’t stuck with it forever. If you need cash sooner rather than later, you can sell your annuity for a lump sum and regain control of your money.
How Does an Annuity Work?
When you purchase an annuity, you’re making an investment in your financial future. Annuities work by guaranteeing you income, either all at once or at intervals, after a certain amount of time has passed. Annuity payout options include income over a set period or even lifetime payments, and some annuities can transfer to a beneficiary if the owner dies before the annuity ends. Many people purchase annuities as retirement plans or as a way to ensure income throughout their life or for their children.
Payments made into an annuity are not taxed, so you can defer paying taxes on your investments. However, most annuities have penalties for early withdrawals, including a 10% fee if you take out money before you reach the age of 59½. If you need to withdraw funds from your annuity before the payout date, selling part of your payment stream can be the best way to avoid steep penalties.
Why Should I Sell My Annuity?
You should be able to use your money when you need it, even if it is tied up in an annuity. The income from your annuity belongs to you, so you shouldn’t have to wait for it to pay out later when you need it now. You can sell your annuity for cash and put it towards immediate financial needs.
The long-term nature of an annuity does not account for changing circumstances in people’s lives. Accidents or illness can mean steep medical bills. An emergency can throw you into debt if you cannot access the cash from your annuity when you need it.
Get Lump Sum Cash to Cover Major Expenses
You can also sell your annuity to cover major expenses, like putting a down payment on a house, repairing your car, and taking care of your student loans or legal fees. Paying off debt can make an impact on your life—you can use cash from your annuity to keep your debt under control.
Minimize the Burden of Student Loans
Financing an education can go a long way, whether you are going back to school or your children are preparing for college. You can sell your annuity to cover tuition now, preventing the burden of student loans in later years.
Have Cash in Case of an Emergency
Whether it’s for emergency or convenience, selling your annuity can provide you with the flexibility to use your money when you need it. Getting cash for your annuity allows you to avoid going into debt when your payment schedule is not ideal for your current situation.
How Can I Get Cash for My Annuity?
You can choose to sell any amount of your payment stream in exchange for a lump sum, avoiding early withdrawal fees while addressing your financial needs. Novation Settlement Solutions is the most respected annuity purchaser in the business, providing people like you with the maximum amount of cash for your annuity. Call 1-855-610-1849 or use our online form to get a free quote today.