Annuity

What is an Annuity?

An annuity is a financial product that pays an annuity recipient money in installments spread over a period of time. The payments are fixed and structured to pay out over a period of time. This payment structure allows the annuity to spread payments in a fixed, secure, long-term income to the recipient, depending on the type of annuity.

Generally, an annuity is a part of a retirement and investment portfolio, and certain annuities will split the annuity investment between fixed-income and savings and investing. The long-term income makes an annuity effective for retirement investing and for structured settlements.

Annuity & Structured Settlements

In the case of a structured settlement, an annuity is used to finance the structured settlement award. A structured settlement is the settlement award resulting from a lawsuit. Often the lawsuit is over an injury case and requires an insurance settlement.

When you have an insurance settlement, the insurance company an annuity to pay the lawsuit award. This is sometimes called an annuity settlement.

Lump sum of cash for annuity

Your annuity payments offer you long-term, secure income spread over a period of time. But your financial situation changes over time as well, and annuity payments may no longer meet your needs. Unfortunately, when that happens, your annuity payments prohibit any increases or advances, leaving you unable to get the cash you need now.

That can be a problem when you need your annuity payments fast or in a lump sum! Getting a lump sum of cash for your annuity payments is not a problem. With an annuity buyer, you can sell your annuity for cash in a lump sum.

Future annuity payments can be sold for cash. An annuity buyer buys the payments, pays you cash, and you walk away with cash in your hands!