An annuity is an asset that offers a definite cycle of payments in the future in exchange for an immediate sum of money. An annuity maybe purchased to facilitate an immediate or deferred payout and could be of a fixed or variable investment type. An annuity may be self-purchased, a gift or even an inheritance. An annuity can be considered a safe source of income, especially after retirement.

However there are times when one needs to have real money in hand to meet expenses rather than documented and sealed bonds. One needs to have control over ones complete monetary resources to meet continuously varying requirements. Selling some or all of ones annuity payments provides flexibility to instantaneously use ones money according to personal needs.

Certain businesses buy annuities from investors in need of physical money. This process is known as selling annuity payments. When an investor decides to trade annuity, the buyer offers a bargained lump-sum imbursement based on the complete present assessment of an annuity contract. The buyer may also offer a portion of the future annuity payments, depending on how much annuity one decides to sell.

While customary annuity payments may be the right choice for the original proprietor, they might not suit the person receiving them as a gift or inheritance. Selling some or all of ones annuity payments gives one the opportunity to use the money to its full potential. Trading annuity may also involve buying another annuity in exchange, which is more suitable to a buyer’s needs. If one owns a fixed annuity, there is a prospect for one to sell some or all of the annuity payments. As such, if annuity contract is over a period of twenty years, one can sell a fraction of the annuity payments from the 20-year component, while still preserving the assured lifetime proceeds.

Most plans for selling annuity payments are customized, which enables the people involved to determine how much is to be paid on an individual basis. There are many variables involved. These include fiscal rating of the insurance company making the payments, the volume of ones deal and how far into the future the costs expand. These factors collectively help establish the amount one will receive. When selling annuity payments, financial experts should be consulted, as it can be a complex process.