How to Sell Your Annuity Payments for Cash?

In the face of an investment opportunity, large amounts of debt or unexpected medical expenses, selling part or all of your annuity may give you the financial freedom you need.

Why Should I Sell My Annuity Payments?

Whether you’re thinking of buying a house, starting a small business or paying student loans, using a portion of your future annuity or structured settlement payments can help you get back in control of your finances. When you face a serious need, accessing your annuity can be better than putting your life on hold.

Selling Options

Annuity owners have several options when selling their payments, including selling the entire annuity, part of it, or a lump sum amount.


Partial buyouts, or selling a portion of your payments, still guarantees you’ll receive periodic income without losing the tax benefits. In the event you need immediate cash for a certain period of time, you can sell payments in exchange for a lump sum. For example, if you need to pay for a new car, you can sell years 1 – 4 of your annuity payments for a lump sum. After the four years have passed, periodic payments will resume.

The structured settlement will continue to carry those tax benefits and extend them to your heirs in case you die before collecting all your payments. In the event you need access to cash a second — or third — time around, you can buyout another portion of your remaining payments for a lump sum.


Choosing to sell your structured settlement for the full term of the contract liquidates your entire investment, ending any chance of periodic income payments in the future. However, you’ll have access to the lump-sum payoff.

3.Lump Sum

Selling lump sums over time also provides immediate income in large increments. But this option still guarantees a steady flow of income from your structured settlement for the remainder of the contract, while still carrying the same tax benefits as before. For example, if you need $25,000 for a down payment on a home, you can sell that amount specifically instead of a certain number of payments that may not add up to the exact amount you need.

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