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Sell Annuity Payments - How Much Money Will You Get?

If You Decide to Sell Annuity Payments, the Amount You Get is Determined by the Following Factors

  • Current market value

  • The amount of your annuity payments

  • The dates your annuity payments are due

  • The discount rate being charged for you to sell annuity payments

  • The rating of the insurance company that issues your annuity payments

  • Whether your annuity payments are guaranteed or life contingent

Image of brunette using calculator, shown on the Sell Annuity Payments page.

Sell Annuity Payments - Current Market Value

When you sell annuity payments, the current market value will determine how much money you receive. In other words, how much is a particular annuity factoring company willing to pay you for your future payments? Market value changes depending upon certain current economic factors. For example, when the stock market is booming, factored annuity payments have less demand. Conversely, when the stocks are considered to be in a bear market, the demand for factored annuity payments increases. Investors seek out factored annuity payments mainly for security.

Size Matters

This one is pretty obvious. The overall size of your payment or payments, will of course, also determine how much money you’ll get. The bigger the payment(s), the more money you’ll get.

Calendar showing date circled with red pen shown on the Sell Annuity Payments page.

Sell Annuity Payments - The Dates Annuity Payments are Due

The date your annuity payments are due is the most important factor to consider when you sell annuity payments. The closer your payments are to today’s date the more money they are worth. Conversely, the further away they are due, the less they are worth. For example, a lump sum payment due in the year 2030 is always going to be worth more than if that same payment was due in 2035. It’s a simple concept really.

A Million Here, A Million There? What Would You Choose?

Think about it. If you had two choices to grab a million dollars, what would you choose; one million dollars that’ll be paid to you tomorrow or one million dollars that’ll be paid to you in 25 years? Well, if you’re like most people you would have chosen the million-dollar cash payout tomorrow. Wouldn’t that be nice! Quite simply the earlier an annuity payment is due the more value it will have. This is why when you sell annuity payments you will often hear talk of present value or the time value of money. Remember when your parents or grandparents would tell you that a candy bar cost a nickel? Well, that was true. That's a major reason why money in the future is never as valuable as money now. That anecdote is called inflation.

Remember, money is never as valuable in the future as it is today.

Present Value for Monthly Payments is a Little Trickier to Understand

A lump sum is just one payment so it's quite easy to understand the concept of present value. Monthly payments, however, are a little tricker. The first monthly payment of a payment stream will always be worth the most since its closest to “today’s” date. Conversely, the last monthly payment will always be worth the least since it’s furthest from “today’s” date. Therefore, if you sell 10 years of annuity payments from October of 2030 through September of 2040, the first payment due in October of 2030 will give you the best return and the last payment in September of 2040 will give you the least return. Everything in between is prorated.

Your Annuity Got COLA?

Many annuities that are paid out as a result of a structured settlement will have between a 2% and 5% annual cost of living increase called a cost-of-living adjustment or COLA for short in order to account for the cost of inflation. The most common COLA is 3%.

Sell Annuity Payments – The Discount Rate

When you sell annuity payments you should definitely know what discount rate you’re being charged. The rate can range anywhere between 7-25%. When you work with us you can be assured that we’ll try to give you the best rate possible. We invite you to shop around. Factor Financial’s funding sources and low cost of doing business allow us to offer low discount rates. Just one percentage point could mean thousands of dollars to you. Before you sell annuity payments, please read the section Sell Annuity - Know the Discount Rate to learn more.

The Financial Strength/Credit Rating of the Insurance Company that Issues the Annuity

The insurance company that issues your annuity is also an important factor in determining how much your annuity payments are worth. Each company is issued a financial strength or credit rating in regard to the overall health of the company and their ability to meet their fiscal obligations. They’re issued ratings by a few different agencies. The agencies that rate insurance companies are as follows:

Go ahead and check out your annuity issuer’s rating. If they are “A” or “A-” rated, then you have nothing to worry about.  The last time I checked these sites required that one create a free account in order to check the latest ratings. In any event, these companies rate the insurance issuer’s ability to pay and overall financial strength. There are some factoring companies that won’t do transactions with companies that are not rated highly. There is one notable insurance company that has even gone bankrupt. Receivership is a form of bankruptcy in which a company can avoid liquidation by reorganizing with the help of a court-appointed trustee. Almost nobody will do a transaction with a company that is in receivership as there is a likelihood they won’t be paid when one’s future annuity payments are due to be paid. Think of these ratings similar to people’s credit reports. It’s basically the same thing, just on a different scale. It’s all about risk and the purchasers of annuity payments want to know how much risk is involved before they buy annuity payments.

Guaranteed Versus Life Contingent Annuity Payments

Some people receive guaranteed annuity payments for a certain period of time. If they were to pass away, the payments would be re-directed to the beneficiary they chose listed in the annuity contract. Others receive life contingent annuity payments (life annuity for short). These payments are due to the annuitant as long as they are alive, meaning there is no beneficiary if the annuitant was to pass away. Often times, people receive annuity payments for a “period certain” or guaranteed duration that will turn into life annuity payments when that “period certain” time lapses. Generally speaking, people that wish to sell annuity payments that are guaranteed will get a better discount rate than people with life annuity payments simply because there is more risk involved in buying life annuity payments. A life insurance policy that is collaterally assigned to the buyer is typically required in order to protect the investor’s interest in buying the life annuity payments. However, if one is currently receiving life annuity payments and they are in good health they may receive a very reasonable rate. For a more complete understanding of selling life contingent annuity payments please read Sell Life Annuity Payments with or without Life Insurance.

Sell Annuity - Know the Discount Rate

Ready to Sell Annuity Payments? First Step Is to Get a Quote

If you want to sell annuity payments make sure you know what discount rate you’re being charged. Quite simply the lower the rate, the more money you will receive in a lump sum. Factoring companies that purchase structured settlement annuity payments will place a discount on the aggregate amount of payments being sold. Aggregate is just a fancy word for total.

The Discount Rate (Interest Rate) is Everything

Let’s say you sell a single lump sum annuity payment of $100,000 due on January 1, 2031. If you were to sell that annuity payment to a factoring company that charges you a 15% discount rate, you’d receive $30,344 if the sale took place on January 1, 2023. On the other hand, if you were to be charged a discount rate of 10%, you’d receive $45,082 for the exact same payment due on the exact same day. That’s a whopping difference of $14,738! It really pays off to make sure you're getting a fair discount rate.

Image of shady businessman shown on Selling Structured Settlement Annuity - Know the Discount Rate page.

Watch Out for the Shady

The factoring industry for buying annuity payments is extremely competitive. It’s cutthroat unfortunately. Some companies may try and fill your head with the idea that other factoring companies won’t be able to fund your transaction or that their operation has specialized procedures and attorneys to get the transaction approved. They may unethically attempt to discredit other annuity buyers by bad mouthing them. Some even fall so low as to flat out lie about one of their competitors.

It's Simple, Just Go for the Most Money

Don’t fall for it. Get the most money for annuity payments you can period. Remember, the court process of cashing in your structured settlement annuity is the exact same no matter which company you choose. All transactions must be approved by a judge in court and all companies will have an attorney at the hearing. Read the disclosures, read the contract. I can't stress this enough. It's fine to check out whichever company you decide to do business with, but the most important thing is to read the disclosures and contract you have in front of you. You also may wish to have an accountant, attorney and/or financial advisor go over the terms of the contract with you.

Just remember the discount rate being charged will ultimately determine how much money you receive.

Sell Annuity? Know the Discount Rate on Monthly or Periodic Payments

Monthly or periodic structured settlement annuity payments are discounted in the same way as lump sum payments. These are called periodic cash flows. The only difference is that each periodic payment has a unique due date as opposed to a future single lump sum payout. For example, a monthly payment of $1,000 due on January 1, 2031, will always be worth more than the next consecutive monthly payment of $1,000 due on February 1, 2031, simply because it’s closer to the present date. Consequently that $1,000 monthly payment due on February 1, 2031, will be worth more than the next consecutive monthly payment of $1,000 due on March 1, 2031, and so on. This illustrates the time value of money.

Use a Present Value Calculator

You can use a present value calculator to figure out how much you would receive by selling a certain number of periodic payments discounted at a particular rate. In case you’re not aware, 10 years of payments would equal 120 payments, 20 years of payments would equal 240 payments, 30 years of payments would equal 360 payments and 40 years would equal 480 payments. Other periodic annuities may be paid annually, bi-annually, or quarterly, however the most common periodic structured settlement annuities are paid monthly or by way of occasional lump sum payments every few years or via a mix of both.

Image of graphic converting years to number of payments shown on Sell Annuity - Know the Discount Rate section.

Sell Annuity Payments? – Get a NET Offer

Make sure you’re provided with a NET offer from the factoring company. There are a couple points you need to consider. First of all, ask the factoring company if you’re being charged any legal fees or fees of any sort. Also, don’t just take their word for it. Make sure that whatever was disclosed to you verbally is also in the disclosures and contract. Keep in mind to choose the best NET offer and not necessarily the best “number” you heard. If a company is offering, you $50,000 for your future annuity payments but is deducting $1,500 legal fees then you’re only going to receive $48,500. That is the figure you should be concerned with. In this scenario you’d be better off going with a company that offers you $49,000 with no fees whatsoever. Some companies choose to charge legal fees and others don’t. It really doesn’t matter, neither is better nor worse than the other, although I personally believe "slipping" in legal fees is shady. Just look at the NET amount being offered to you.

Independent Professional Advice May Be Required

Some states require that you receive independent professional advice from an accountant, attorney or financial advisor before you’re allowed to sell annuity payments. In these cases, you’ll most likely have to pay some type of fee to that professional. California is an exception, whereby the factoring company is responsible for paying this fee. Otherwise, this amount will usually be deducted from your purchase price. Fees to review contract terms can range from $100 to as high as $1,000 and many times vary by state or whether you live in a rural or metropolitan area. Therefore, if you reside in a state where this advice is mandatory be aware of the fee being charged.

Sell Annuity Payments? Understand the Importance of the Start Date on the Sale of Current Monthly Payments

One last thing to consider is the start date on the sale of current monthly annuity payments. Let’s assume today’s date is April 1, 2025, your annuity payments are due on the 15th of each month, and you want to get a quote on selling the next 10 years or 120 payments of a $500 monthly annuity check. Some companies may give you a quote based with a start date of April 15, 2025; in other words, 14 days from “today’s” date. The problem with this is that your transaction won’t be completed by then. This unethical tactic allows the company to quote you a higher price than a potential competitor.

Any Monthly Payment You Assigned in Your Contract That is Inadvertently Paid to You During the Transaction Will Be Deducted at Funding

Make no mistake; the factoring company will deduct whatever monthly payments were sent to you during the transaction. So, if they offered you $50,000 but 3 and half months passed, then you’d only get $48,500. That's because they did not receive April, May or June’s payment. Typically, you can expect to wait at least 45 days or more before you receive your lump sum payout regardless of which company you choose. The average time is usually closer to 60 days. Some states have a quicker processing time than others. Some states like New York are notoriously slow while others like Virginia are historically quick.

Remember That in Order to Sell Annuity Payments That Stem from a Structured Settlement, a Court Ordered Process is Required

Remember this is a court ordered process. Notices have to be sent to all parties, disclosure waiting periods have to be adhered to and the county court must have a date available on its calendar. Therefore, it’s better to receive a quote from a company that pushes the start date out a few months from the time a quote is requested on current monthly payments so there are no surprises in the end when it comes time to fund your transaction.

Scenario: If You Were to Sell Monthly Annuity Payments to Factor Financial

If you were to seek a quote from Factor Financial in April of 2025 on current monthly payments, we would push the start date out till at least July if not August of 2025. This means you’d still receive the next 3 or 4 payments directly from your insurance company just as you normally do. This gives plenty of time for the entire process to take place before your first annuity payment is due to be assigned. If the first assigned payment was slated for August 15, then you would have already received 4 monthly payments of $500 or $2,000 that we did not purchase. Keep that in mind.

You Should Push Out the Start Date of the First Assigned Payment

Just compare apples to apples. Tell the factoring company the date on which you’d like to have your first payment assigned and make sure to push it out a few months. Doing this should also prevent insurance companies from “holding” payments. This can happen when the first assigned payment date is too close to the hearing date. The insurance company is not sure where to send the annuity payments, so they hold them until a court order is granted or denied.

Pros and Cons to Selling Annuity Payments

Sell Annuity Payments - Review the Pros and Cons

Should you sell annuity payments? There are pros and cons as with most things in life. A Structured Settlement is a defined set of payments issued to the victim of a lawsuit case in the form of an annuity. These types of annuities are called Single Premium Immediate Annuities (SPIA). These annuity payments are negotiated with the attorney that represented the plaintiff or victim in a lawsuit and the attorneys for the insurance company that represented the defendant in the case. Sometimes these cases are settled out of court while other times litigation is necessary. Most parties prefer to avoid litigation as it is costly.

Let's Clear Up a Little Terminology First

The terms structured settlement payments and annuity payments are often used interchangeably. Remember, a structured settlement is paid out in the form of an annuity. Annuities have long been considered the most viable way to comply with the payment terms of the structured settlement agreement. Thus, all structured settlement agreements are paid out in the form of annuity payments. For the sake of simplicity, most of this page will simply refer to these payments as “annuities” or “annuity payments”.

Why Would Someone Be Interested to Sell Annuity Payments?

Annuities may be comprised of annual, lump sum, monthly, quarterly and semi-annual payments. The idea behind a “structured” annuity is to provide for the long-term needs of the victim. Sometimes however life happens. Sometimes things happen to the annuity recipient (generally referred to as the annuitant or payee). Some things cannot be foreseen such as loss of job, death of spouse, rough economic times etc. Many times these individuals have no real choice but to consider selling annuity payments. Other times individuals simply want to make a large purchase such as a home, but they lack the traditional means of coming up with a sufficient down payment that the mortgage company will accept. Others may want to start their dream business.

Sell Annuity Payments from Structured Settlement via Court Order

Section 5891 of the H.R.2884 – Victims of Terrorism Tax Relief Act of 2001, a federal law passed on January 23rd, 2002, requires that all structured settlement annuity transfers be approved by way of a qualified court order. If no qualified court order is obtained the factoring company is liable to pay a 40% excise tax. Before this act was made into law there was no entity to oversee annuity transfers. It was the Wild West. Most structured settlement annuity transfers are heard in the same county where the annuitant resides. While many annuitants feel it’s a pain in the ass to have to have a judge approve the transaction it’s really in their best interest. Previously a handful of unscrupulous companies would charge exorbitant interest rates to payees above 20%.

Sell Annuity Payments - The Benefits

Invest in Real Estate

There can be pros and cons to selling annuity payments. It generally boils down to your economic well-being and what you intend on doing with the lump sum payment of cash you obtain from the annuity transfer. If you have a good paying, stable job and would like to invest in a home for you and your family but lack the means of coming up with a down payment then it definitely may be a strategy worth considering. Right now is an excellent time to give some thought to investing in real estate as the asking prices are low in many parts of the country.

Post Covid Housing Market

Post Covid-19 has created a quite active housing market. Many people simply want to move to a new town or state. For example, recently there has been a mass exodus of people leaving California due to the high cost of living and taxes. Covid-19 has also made possible the idea of working from home mainstream; something that was unheard of or considered "shady" just 20 years ago. Consequently, people are choosing to live where they actually want and not simply because it’s close to their company’s office.

Other Reasons

There are several other valid reasons why one may want to consider selling annuity payments. Buying a car, repaying debt, home remodeling, finishing education, starting up a business (with which you have practical knowledge), and medical needs are all valid reasons to think about selling annuity payments. Additionally, not everyone has a sufficient credit score to acquire funds from traditional sources such as personal loans. Additionally, personal loans can be more expensive and may charge higher rates than if you were to contemplate selling annuity payments.

These Days You Should Be Able to Get a Good Discount Rate (Interest Rate).

Nowadays, if you're selling annuity payments to the right factoring company you should be presented with very reasonable interest rates that compare with or beat bank rates. The only exception may be if you're considering selling life contingent annuity payments. Due to the risk involved in buying these annuity payments the rate charged to you will typically be quite a bit higher.

Sell Annuity Payments - The Cons

On the other hand, if your annuity is your only source of livelihood and you don’t have any other way to sustain yourself then cashing it in wouldn’t be in your best interest. How would you be able to pay for day to day living expenses? How would you be able to constantly put food on the table for you and your family? It’s not recommended to even think about selling annuity payments to embark on a vacation, get started in a business for which you don’t have any previous experience, buy a new car you don’t need just because its “awesome”, fulfill gambling or drug addictions, or simply because you want a huge lump sum of cash.

Once You Sell Annuity Payments - Poof! They Vanish

Remember, once you sell annuity payments they’re gone. You won’t be able to just change your mind after the court signs an order approving the transaction. You might easily spend that lump sum of money in a short amount of time. It’s hard to earn money but easy to spend. If you know you’re not “the responsible” type, then forget about selling annuity payments.

If You Have a Solid Plan and a Good Reason, Then Go for It

Otherwise, if you’ve got a smart plan in advance and a legitimate reason, be confident in your decision to sell annuity payments. Make certain to get the best quote. If you’re not sure of precisely what you’d do with a lump sum of cash, then you may want to reexamine. Perhaps you should consult with an attorney and/or financial advisor before selling annuity payments to make sure you fully understand the terms.

Sell Annuity Payments to Factor Financial – The Benefits

Factor Financial never charges outrageous fees. We have a vast network of private investors willing to pay top dollar for annuity payments. Contact us today if you're interested in selling annuity payments. Rates will generally be higher for individuals that want to sell life contingent annuity payments as they are a bit more complex and require a life insurance policy or self-insurance. Read our section Sell Structured Settlement Annuity Payments to get a better understanding of the entire process.

Advice on Selling Annuity Payments

Sell Annuity Payments for a Specific Reason

People wanting to sell annuity payments should first decide how much money they need. Some people make the mistake of requesting either too much or too little. Ideally someone should only take out the amount of money they need from their annuity payments. They should, however, make sure they sell enough of their annuity payments to accomplish whatever goals they have in mind. A detailed plan as to what they intend on doing with the proceeds from the sale is the first step.

Example of Some Good Reasons to Sell Annuity

Some of the better reasons I've come across over the years are: Buy a home, education (for those that don't qualify for a student loan or scholarship), medical necessities, remodel a home, and start or expand a business (for which the Annuitant is already trained or has practical knowledge).

Nobody Should Sell Annuity Payments Just to Have a Load of Cash with No Plan in Place

If you're not sure about what to do with a lump sum of cash, then you shouldn't consider selling annuity payments. At least not now. Perhaps down the road you'll know exactly what you want to do and come up with a detailed plan. Until then just relax and know that those payments are there for you. Afterall, unless you're the beneficiary of the original annuitant, your structured settlement was made with your long-term needs in mind. Granted those needs may change but if you're unsure, then don't sell. You may regret it.

If You Want to Sell Annuity Payments Having an Additional Monthly Income is Imperative

Someone wanting to sell current monthly annuity payments should make sure they have an alternate stable source of income before parting ways with their monthly annuity. The United States in general has a very mobile population and people move frequently for various reasons. In the last couple of years people have left California due to its very high cost of living, including high state income and sales tax. Covid-19 is another reason some people have chosen to move to a more rural location, especially now that many companies are allowing their employees to work from home. 2022 is an excellent time to buy a home as the average interest APR on a fixed 30-year fixed rate mortgage sits at just 3%.

If You Want to Sell Annuity You Should Compare the Offers from Factoring Companies

If someone wants to sell annuity payments to a buy a home, go to school, pay bills, or start a business they should make sure they sell enough annuity payments in order to get the cash they need to accomplish their goals. After deciding how much money is needed it’s smart to shop around a bit to see which factoring company will give them the most money. In addition to simply getting the most money, they should feel confidence in the representative and company they’re dealing with. Once a company is chosen the annuitant should cooperate with their representative and send them the required documents to get things started. Typically, a copy of what’s called a “benefits letter” or a copy of the annuity policy from the insurance company that issues the annuity is all that is needed to get the ball rolling.

Sell Annuity Payments to Buy a Home

Buying a home is one of the biggest reasons people sell annuity payments. It's also one of if not the best reason. Buying a home is understandably a dream of many. If a person’s goal is to buy a home, they should make sure the lump sum of cash they receive from the sale is enough to cover the cost of buying the home, whether as an outright purchase or to simply cover the down payment.

Make Sure to Consider All Costs Involved

The amount should also be enough to cover expenses such as closing and moving costs. Other expenses to consider are new appliances and furniture. It’s quite understandable that a proud new homeowner might not want to drag their old, outdated appliances and furniture to their band new house.

Some Annuity Factoring Companies Unjustly Bash Competitors, Use Sales Gimmicks, and Outright Lie to Prospective Clients

Quite honestly the annuity factoring industry doesn’t have the greatest reputation and with merit. Years ago, many of the larger factoring companies would charge their customers preposterous discount rates often as high as 20% and greater. I know, as I worked for one for 8 years and it was frustrating that almost all offers were written at such high discount rates. Also, factual accounts of fraud over the practice of not adhering to certain state statute requirements concerning the use of independent professional advice were unveiled. Many of these “independent” advisors were actually referred to the annuitant by the factoring company themselves therefore violating the annuitant’s right to seek “independent” counsel before signing the contract to sell their annuity payments. Presently there are a handful of states that require that the annuitant seek independent professional advise prior to selling their annuity payments. There are other bad stories involving companies taking advantage of mentally incompetent annuitants and more but it's not worth delving into. There are enough "Structured Settlement Police" out there to write about all the unscrupulous factoring companies.

The Overall Image of Annuity Factoring Companies is Terrible - And That's a Shame

Over the past few years, the discount rates have come down considerably throughout the industry as a whole, but the damage to the annuity factoring industry was done. It may take a while for the overall image of the industry to improve if it ever does. That's a shame because there are plenty of legitimate and fair factoring companies that conduct business honestly and complete transactions at very favorable discount rates for the annuitant. Not every company is scum or fraudulent. Still, it's like the news, that's all you hear about. That's all you see online is the atrocities of the bad actors. Nobody writes about the good guys. Oh well. Below we’ve revealed some of the unscrupulous techniques some factoring companies may use to get an annuitant to sell their structured settlement annuity payments to them over one of their competitors. Just keep one thing in mind. The only thing that should truly matter to the annuitant is which company gives them the most money for their annuity payments. Here are some common myths and tactics account representatives from numerous factoring companies use when trying to coerce an annuitant to sell annuity payments to them.

“I’ve never heard of that company…”

It is immaterial if someone has heard of a company or not. The truth is selling annuity payments is not rocket science and is actually quite simple. In fact, the court process of selling a structured settlement annuity is the exact same no matter which company one chooses. The annuitant should be concerned with being able to sell annuity payments for the most money and not whether a company is popular or has television ads.

“They won’t be able to fund you…”

This is a commonly used tactic and a complete lie. Anyone that works in this industry is able to fund the annuitant once the order is received. Otherwise they wouldn’t waste their time being in this business.

“We are part of the BBB, they are not…”

This claim also has no bearing. Years ago, it used to actually matter. Back in 2010, however, the widely popular ABC show 20/20 did an investigative report that showed the BBB regularly gave out “A” scores to any company that paid them regardless of the number of complaints they had against them. To test this theory one group created a fake organization called “Hamas” named after the Islamic terror group and sought to get approval by the BBB. Sure enough, the BBB gave them an “A-” once they received credit card payment. They also gave an “A+” to another bogus entity called Stormfront; a web site the group created as a skinhead, neo-Nazi organization. Shocking, isn’t it? Please watch for yourself. Conversely world-renowned chef and restaurateur Wolfgang Puck was given an “F” as was the Ritz Carlton in Boston, one of the most highly regarded hotel chains in the world. They both alleged they were given an “F” for failure to pay the BBB annual fee. I’ve stayed at a few Ritz Carlton hotels over the years, and I consider it a class “A” organization and can’t imagine how anyone would rate them an “F” in anything. It’s completely unwarranted and unfair. Therefore, people shouldn’t place too much faith in any company’s BBB rating especially when their good rating is paid for with a credit card.

“Look at our testimonials…”

Testimonials are fine if they are truly prior clients. In this day and age businesses all over the internet rely on testimonials to sell their product or services. While on the surface this seems to be a good idea, the “bad man” will always find a way to cheat the system and pay people for fake testimonials. Amazon has removed numerous vendors after verifying that the vendors violated their policy and had phony testimonials written about how great their products are. Written testimonials simply may or may not be genuine. Even video testimonials can also be bought with paid actors or just people "off the street". People should be smart and go with their gut instinct. It’s truly amazing how accurate one’s gut instinct is. It’s probably people’s best tool to measure the ethics of any company.

“It’s a difficult process only we can handle…”

This is complete rubbish. Any company with one competent attorney can process a structured settlement annuity transfer. Once again, it’s not rocket science.

“We’ll give you multiple offers…”

Any company can give you multiple offers if someone really wants that, but the concept doesn’t even make sense. Obviously, the annuitant is best served by going with whichever company gives them the best offer for their annuity payments. The concept of providing multiple offers lower than the best offer is pointless.

“We are Certified Funders…”

There is nothing certified whatsoever about funding a structured settlement annuity transfer. This claim is pointless and unfounded. There is no certification needed or required to fund a structured settlement annuity transfer. Once again, the annuitant is best off going with whoever gives them the most money for their annuity payments period.

“We have special lawyers…”

The truth is many factoring companies use the same lawyers or outside counsel to process a structured settlement annuity transfer. There is nothing “special” or unique about the attorneys one company uses versus another. Once again, structured settlement annuity transfers are not complicated. They are straightforward.

“We’re a direct funder…”

Although a company may occasionally buy an annuity and keep it in house it’s an extremely rare instance. Even if the payments are originally re-directed to the factoring company’s address after having received the court order approving the transfer, the company will eventually seek to securitize their cash flow of annuity payments to an institutional investor. All factoring companies function as middlemen whether for an individual investor or institutional investor. It’s just the way the business is run. There is no such thing as a “direct funder”. In reality the direct funder is the individual or institution that winds up receiving the assigned annuity payments and is hardly ever the same company that processed the transfer. The same holds true for home mortgage originators. They’d go broke very quick if they sat around for 30 years hoping that each mortgagee pays their monthly note. They’d be left with no more money to lend to new clients. Instead, they pool their mortgages and sell them in the secondary market to government sponsored entities such as Fannie Mae and Freddie Mac.

“We’ve been around for years…”

This claim is immaterial and is similar to the “I’ve never heard of them” assertion. Once again people wanting to sell annuity payments are best served by going with whichever company offers the most money. The fact that a company has been around for a long time is irrelevant. Perhaps that same company has been ripping people off for years too. Every company starts somewhere. There are thousands of successful, trustworthy, companies that haven't been around for years and years.

“We’re on TV…”

The fact that a company runs ads on television is irrelevant. It simply means they have high overhead and a higher cost of running their business. If anything, they will charge the annuitant more to buy their payments to pay for that advertising. Everyone knows that television commercials are expensive. Some companies spend hundreds of thousands of dollars per month to reach people that may want to sell annuity payments. Once again, the annuitant should go with whomever offers the most money and forget about whose running ads on TV and who’s not.

“We’re giving away free iPhones…”

This claim or offer is fine if it’s true, but the annuitant shouldn’t let it delude them from the amount they’re actually receiving by selling their annuity payments. If a company pays someone $10,000 more for their annuity payments that will more than make up for the free iPhone! $10,000 can buy lots of iPhones! Factor Financial may occasionally offer gifts and other promotions to our valued customers but that will always be secondary to the amount of money we offer for annuity payments. People should go with whatever company offers them the most money and they can buy their own iPhones if they wish!

Competitor Bashing

This practice is truly upsetting. Anyone that stoops so low as to bash a competitor of theirs to win over the client has no ethical standards. The quotes Factor Financial offers people wishing to sell annuity payments are highly competitive and often the best. However, in rare instances a competitor of ours may actually offer the annuitant more money than we can and that is OK with us. If that’s the case so be it. It’s Factor Financial’s policy to not bash another competitor with lies and mistruths in an attempt to persuade the annuitant to transact their business with us. Quite honestly this practice is what hurts the industry as a whole and gives it a “dirty” reputation. Factor Financial maintains the highest ethical standards in the industry and we let our professionalism speak for itself. We accept fair competition and realize it’s part of the business and actually best for the industry as a whole.

For more information on the process of selling structured settlement annuity payments please refer to our page Sell Structured Settlement Annuity Payments.

Sell Investment Annuity

Sell Investment Annuity You Own

Sell investment annuity you own to Factor Financial for a lump sum of cash. This is for anyone that has a self-owned annuity that is NOT the result of a structured settlement. If you have an annuity you’d like to sell as a result of a structured settlement, please read Sell Structured Settlement Annuity or simply call us at +1 (781) 242-4000 to get a quote.


People's Needs and Wants Change Over Time

Most of us don't live robotic lives with a pre-determined financial road map that never changes. To be human is to be flexible. Many people buy annuities as an investment while others may inherit an annuity from a loved one. We understand that people’s plans or needs change with time and there is a time to invest and there is a time to cash out. Perhaps you want to buy the home you’ve always wanted or start your ideal business. If you’d like to sell your annuity, just give Factor Financial a call.

If You Sell Investment Annuity There Will Be Tax Consequences

We advise you to speak with an accountant regarding tax implications if you decide to cash out your self-owned annuity. It's possible that you may be able to "surrender" your annuity to the annuity issuer with a penalty assessed. Factor Financial only purchases Single Premium Immediate Annuities (SPIA) or Fixed Annuities with a set, fixed schedule of periodic payments. Investment annuities are usually easy to work with. A simple change of ownership can usually be filed with the annuity issuer. This process can usually be done within a couple weeks if not sooner.

We don’t buy Variable Annuities that depend on the performance of an underlying portfolio of investments.

Image of couple going over finances shown on the Sell an Investment Annuity page.

Quote for Annuity Payments

It's Very Easy to Get a Quote for Annuity Payments

Want a quote for annuity payments? Perhaps you’ve sold part of your annuity previously and are looking to sell again. When searching for a quote for annuity payments, start off by asking what discount rate (interest rate) the factoring company is charging you. The lower the discount rate, the more money you’ll receive. The quote you receive will depend on several factors including when your annuity payments are due, the annuity issuer, and whether your payments are guaranteed or life contingent. Visit our section sell life annuity payments for more information.

Several Years Ago, Discount Rates Were Abysmal

Many years ago, there were only a handful of factoring companies that bought structured settlement annuity payments. Due to the lack of any meaningful competition discount rates were typically 19% and above. In fact, 19.99% seemed to be the norm. Today, there are numerous, mostly smaller companies that branched off from the big players in the industry. Due to the increased competition discount rates have plummeted drastically which is great for the consumer looking to get a fair value for structured settlement annuity payments.

Quote for Annuity Payments – Technology Has Changed the Workplace


If someone worked from home or a cafe in the late 90's or early 2000's it was seen as fishy or suspect. Nowadays billion-dollar corporations employ people all over the world that work remotely from home. I'm talking MAJOR CORPORATIONS. Just do an internet search for "work from home" and see all the results. This change in workstyle has allowed smaller organizations to thrive with the added benefit of a low overhead. Commuting costs money and takes time. Not only that but the monthly cost of maintaining a modern office for all employees can make it hard for smaller organizations to prosper. Smaller companies now have the tools to compete with their big rivals. Many customer service reps, life insurance agents, real estate agents, and sales people now work from home. In fact, the vast majority of customer service reps for major US corporations reside overseas, typically in the Philippines. The demand for this change in workstyle increased dramatically during the Covid-19 pandemic.

Draconian Micromanaged Office Policy is Outdated

Health experts agree that an employee sitting at a desk for 8 hours has been proven unhealthy and in fact dangerous. I remember rushing back to a cubicle several years ago; driving erratically just to make sure I “punched in” before my strict one-hour lunch break was over. Employees would literally run from their cars through the parking lot and up the stairs in their office attire to try and punch in just in time. Any employee that was 1 minute late would automatically receive an email letting them know they were 1 or 2 minutes late returning from lunch. That stress is completely unnecessary, and that micro-management style is draconian and very outdated. Work stress has been linked to alcoholism, diabetes, drug abuse, and weight gain/obesity. Sitting in a chair with one’s legs perpendicular to the floor for several hours has been linked to life threatening blood clots called DVT (Deep Vein Thrombosis), that usually develop in the calf. Let’s just say people crammed in cubicles is so 2008. You may have even heard the phrase “sitting is the new smoking.”

Focus on the Big Prize, How Much Money for Your Annuity Payments

The point is that the annuitant should be concerned with how much money they'll receive for their annuity payments nothing else. The size of a company's office building and number of cubicles is meaningless. In fact, the act of collusion is much more likely in a large office environment than an individual's home. Rest assured that a licensed attorney will handling the transaction at the courthouse.

Woman with dreads with daughter on cell phone shown on the Sell Annuity Payments page.

Get a Quote for Annuity Payments from Factor Financial

Factor Financial can provide you with a quote for annuity payments at very reasonable rates due to our vast network of private investors and lack of overhead compared to other factoring companies. An attorney, working on behalf of Factor Financial, handles the sale or technically the “assignment” of the annuity payments at the court hearing. Usually, the annuitant must attend the hearing. The goal is to have a judge approve and sign a court order for the assignment of structured settlement annuity payments.

Get a NET Offer When Getting Quote for Annuity Payments

Finally, remember that any quote for annuity payments is only as good as the company offering it to you. Sometimes it’s worth accepting a quote for a couple hundred dollars less, if it’s from a company you have a good feeling about and instinctively trust. Make sure whatever quote you receive is a NET offer. Some companies charge legal and administrative fees that will be deducted from your purchase price at funding. Get a final NET offer. Factor Financial only offers NET quotes to prospective clients. We’ll still be there to help you with any questions you have AFTER you’ve signed the contract. It’s completely normal to have questions before and during the process. Factor Financial representatives are usually available after hours, and always focus on meeting the client’s specific financial needs.

We’d Love to Hear from You

If you have any questions or are ready to sell annuity payments, please fill out our online quote request to sell annuity payments or simply pick up the phone and call Factor Financial today at +1 (781) 242-4000.

Our Account Managers are friendly, knowledgeable and will treat you with the respect you deserve.

Get a Quote


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