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How to Sell or Cash Out Annuity Plans

By Compuquotes Team on June 26th, 2008
Annuity

For people in their retirement years, investing in an annuity makes the most sense from a long-term growth and low risk perspective. However many people are unsure of the ins and outs of how annuities work, and thus, because annuity plans are not as popular as other investment products, some people are still wary of them. This wariness stems from the fact that many people about to retire are still unsure about how they will benefit from the annuity plans once they are ready to retire. Knowing how to sell annuity plans is critical for you if you are looking into investing in annuities. Before you begin your investment plan, you want to be sure that you will know how and when you will be getting your investment returned. If you are considering purchasing annuity plans, then you will want to be informed on your options of selling your annuity plans when the time comes for you to do so.

An annuity plan works by you making a lump sum contribution and watching this principal amount grow over time, with interest. You can pay into your annuity in increments, or you can make a large contribution and watch it grow. When you need these funds, typically for your retirement years, you will want to know how to access these annuities, and to do so, you will need to know how to sell your annuity plans.

Just like the way you put money into your plan, you have options in terms of how you get your money out of it. You can obtain your funding in one lump sum, or you can obtain a monthly or weekly check from your annuities company out of your annuities fund. If you wish you receive a lump sum payment from your annuity plan, then you will need to sell it, as if it is an asset. This is the primary reason why people sell or cash in their annuity plan.

The first option you have then of selling your annuity plan is to do so through the insurance company or annuities company you bought it from. You will do so, for a fee, and essentially cash out your annuities plan to the tune of one lump sum paycheck for you. If you wish to do this, you will need to know if there will be fees for cashing it out early. Check with your company for any penalties you may incur before you decide on an annuities plan if this is the option you think you will pursue.

In some cases, you can sell your annuity plan to someone else that wants to buy your annuity from you. You can do this for a friend, family member, or even a complete stranger. This is becoming a more common way of obtaining a lump sum payment for your annuity without incurring early cash out penalties. Many companies online are not offering means for annuity holders to release their annuity plans quickly and easily. Before you do this however, you will need to conduct reliable research specific to your state to educate yourself on the legalities involved with this method. This method IS legal, but every state carries different requirements for selling annuities to other individuals.

Other methods of selling annuities involve using them as loan collateral, or exchanging existing annuities for alternative annuities. Because annuity plans are a secured cash asset, there are essentially many ways that you can sell your annuity plans. How and why you sell, or intend to sell, your annuity plans is an entirely personal choice. It is your money, and you can do what you want with it. But be sure before you do so, you are educated on all of the legalities, and all of your state requirements or penalties.

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