It’s relatively easy to sell annuity payments, but it’s always best to be cautious. There are many companies that purchase annuities. However, there are key questions that you should ask. Selling an annuity is a big decision, and you could be dealing with a considerable amount of money. While annuity payments are obviously beneficial, sometimes selling it for a lump sum is a wise decision. Of course, this doesn’t mean you should make the decision without preparation.

1. Time

Time frames vary. Many people assume that selling an annuity will be quick and easy. Sometimes this is true, but state laws and regulations do apply. Selling your annuity could take a couple of weeks or a couple of months. In some instances, it could be even longer. This is a great question to ask upfront, so you know the sort of time frame you can reasonably expect. Remember that this isn’t entirely up to the purchaser. There are laws and regulations that must be followed.

2. Amount

This is the question that almost everyone asks right away, and it’s definitely an important one. When selling your annuity, the net amount is the absolute greatest amount that could be offered for your annuity. This varies depending upon a number of factors, such as payment dates, payment amounts, and the total duration and final amount of the annuity itself. Most businesses do their best to achieve the highest amount possible, but the number could vary from one company to the next. It’s worth considering multiple buyers.

It’s worth noting that you should avoid hidden fees. While it’s unfortunate, there are companies that will attempt to sneak in hidden fees. This decreases the final amount that you’ll actually receive. Make sure to get everything in writing and avoid businesses that like to tack on added fees or hidden charges. It’s an unscrupulous practice, but it does happen.


The National Association of Settlement Purchasers (NASP) sets strict standards regarding practices and ethics among annuity purchasing companies. Businesses that are members of NASP have to meet certain standards within the field. This is used to hold companies accountable. It also ensures protection for payees and businesses alike. Ask if the company is a member of NASP. As a general rule, it’s best to only do business with a company that’s an established member of NASP. Protecting yourself is always a good idea.

4. Type

One of the first questions to ask upfront is whether or not the company buys the sort of annuity that you’re attempting to sell. Most are willing to purchase annuities that are the result of a lawsuit. This is perhaps the type of annuity that’s most likely to be purchased, but others are common as well. Lottery payments and investment annuities may be purchased as well. The purchase of structured settlements, lottery winnings, and other annuities is fairly common.

You may have more difficulty attempting to sell a pension, retirement, worker’s compensation, or a company buyout. Purchasing variable indexed annuities is also less common. Speak with the company and get confirmation regarding your specific annuity. As mentioned previously, these limitations are largely due to laws and regulations in place. What can or can’t be purchased may not be something that the business is able to decide. It may be out of the company’s control.

Quick annuity payments are excellent, but a lump sum is sometimes preferred. Contact Rightway Funding at 1-844-516-6639 if you have any questions or if you would like to learn more.