Maybe you bought an annuity years ago, or maybe you inherited an annuity or are receiving annuity payments through a structured settlement. Annuities can be great tools, and there are all kinds of valid reasons for owning an annuity. But, sometimes you need cash now rather than later; that great annuity isn't doing you much good when you only receive a small payment every month.
Extra cash needs may be unexpected which is why cashing in an annuity helps you get cash, fast!
Here are just a few of the many things you may need extra cash to pay for:
• Home repairs or remodeling
• Putting a down payment on a new home
• Getting caught up on high-interest bills
• Paying for college or graduate school
• Replacing an older vehicle with a more reliable one
• Health care expenses not covered by insurance
• Investing in a business or real estate
Cashing in an Annuity is a Source for Cash!
Many annuity holders are not aware that they have options when it comes to cashing in an annuity and getting the cash they need. If the insurance company that issued the annuity will not allow you to surrender an annuity to them for cash, you may still be able to get competitive market rates by selling it to Cashout Annuity.
How Much is an Annuity Worth?
The amount of cash you will get will depend on a lot of factors, including the size of the annuity, and the size and frequency of payments you are receiving. One of the major factors in determining how much your annuity is worth is the then-current interest rate, or discount rate, when you sell.
The discount rate is the rate at which your future payments are discounted to reflect the time value of your money. When you decide to sell your annuity, the amount of your future annuity payments are added up, and then discounted by a certain percentage.
Don't confuse discount rates with interest rates! When investing, you want interest rates to be high. The opposite is true when you are selling your annuity: lower discount rates are better because you will receive more money. Essentially, the lower the discount rate, the greater the present value of your annuity.
And, the great news for people considering selling their annuities is that lower discount rates now mean it's a great time to explore cashing in an annuity for money you can use for those unexpected expenses.
To get started, simply contact us today. We work with people nationwide and we can help you determine whether you should be cashing in an annuity.