A simple Annuity definition is a series of fixed payments paid at regular intervals over a specified period of the time. Essentially annuities are tax deferred retirement savings plans, designed to provide an income stream– either at some future date or immediately.
When purchasing annuities, a annuity contract is signed with an insurance company, agreeing to invest a certain amount of money. In return, the insurer promises to credit earnings to the purchaser’s account and agrees to annuitize the account value if desired.
Annuitization means the insurer will return the principal and earnings in regular payments that are guaranteed to last for the rest of the purchaser’s life. Or, if desired, money can be withdrawn as a lump sum, in a systematic way over a specific term, such as 10 or 20 years. Annuity guarantees are based upon the claims paying ability of the issuing insurance company.
Many investors use annuities primarily as a way to accumulate tax deferred Annuity earnings without intending to annuitize. Because they don’t owe income tax on any earnings until they withdraw or begin to receive Annuity payments, they have the potential to accumulate a larger account balance than in a taxable account. Other investors buy annuities as a personal pension, to provide a stream of guaranteed lifetime income.
Everyone is looking to set their future, especially financially. In order to accomplish this, some people go for financial products or services being offered by different financial institutions.
One example of a financial product is an annuity. People purchase an annuity so that they can have a steady source of income at the time when they are already retired. Some purchase for an annuity payment to prepare themselves financially in case that unforeseen expenses need to be made in the future.
Even though annuities are mainly used for the future, it can also be used for the present especially when unexpected scenarios happen. To make use of annuities for the present, one must sell it.
One main advantage of selling this financial product is that a person would get large amount of cash for the present instead of waiting for it to reach maturity. Normally, an annuity would reach maturity in a matter of 5, 10, or 20 years, or much longer than that. An individual would certainly be placed in a very tough situation financially when he waits for his annuity.
Another advantage of selling it is that the cash received can be used to cover different kinds of expenses. These are, but not limited to, medical care and dental work, payment for a house, payment of bills and debt, car repairs, educational plan, and house repairs.
With this company, one has the option to either sell the entire annuity or just a portion of it. The company is saying though, that the best option is partial buyouts. The company would still provide thorough evaluation of the needs of their client so that they could come up with a proper assessment as to whether it should be full or partial buyout.
Why You Need Sell Annuity Payments
If you are considering selling your annuity payments for a lump sum of cash, fill out our free online application form and we will determine how much your future payments are worth. Moreover, our financial experts will tailor an individual selling plan based on your specific needs that will allow you to sell annuity payments entirely or partially, so you can get both a lump sum of cash and continue to have some of your payments coming your way.
There are numerous situations where it might be wise to sell annuity payments for a lump sum of cash right now. However, one of the most important reasons for selling your annuity is that you get your money as a single lump sum of cash that gives you more freedom in managing your financial needs and obligations.
Whether it is a business investment, making a large purchase or home improvements, covering medical bills or unexpected expenses, after selling your annuity payments to us, you will successfully handle any financial situation you may face.
With inflation threatening to devalue your money over time, your annuity payments today are always worth more than in the future. By selling your annuity payments to Fairfield Funding, you become free from your inflexible annuity schedule and get full access to your legal money right away.