If you purchased an annuity as a retirement savings plan, chances are you never imagined that you might one day want to sell it. But circumstances change, your financial needs may be different than you imagined and an annuity can be a viable source of money if you choose to cash it in. If you’re considering selling and need to calculate the cash value of an annuity, there are a number of factors to consider.
Cashing in vs. Selling Your Annuity
Some annuity contracts come with a built-in option to cash them in before their term is up, and receive a cash amount instead of the full annuity. This might seem like the easiest option for those who want to receive the cash value of an annuity, but it does come with some consequences.
This isn’t possible for many annuities and when it is permitted, the insurance companies will only give you a fraction of the remaining total. This can severely devalue the annuity and cause a significant loss of funds.
The other option is to sell your annuity to a factoring company, like J.G. Wentworth, that purchases annuities in exchange for a lump sum of cash. You will receive your money within a few weeks of filling out the necessary documents and at the best rates available.
This is paid content. Want to take out an ad? Read my advertise page.
