Do you understand the different types of annuities? If you need to sell your annuity quickly for cash, do you know where to turn? You may need to seek the advice and services of a settlement funding company.

Keep reading, and you’ll learn how to sell your annuity for immediate cash, but first, here is a brief overview of the different types of annuities:

Annuities – Thirteen Types:

  1. Variable annuities: Variable annuities are tax-deferred tools for retirement that let you invest in bonds, mutual funds, and equities – and take the risks associated with those investments.
  2. Immediate annuities: Immediate annuities are contracts (that do not have cash value) with insurance companies. The insurance company is paid a lump sum in return for regular annuity payments for the contract’s specified time period.
  3. Fixed annuities: Fixed annuities provide a fixed and guaranteed interest rate for the term of the contract, comparable to a CD (Certificate of Deposit).
  4. Fixed indexed annuities: A fixed indexed annuity earns interest as determined by a market index which indicates how well or poorly the market (or a part of it) is performing.
  5. Registered index-linked annuities: Registered indexed-linked annuities entail a limited risk but also a limited ability to grow. The interest the annuity can earn is limited by a cap, but the value it can lose is limited by a “floor.”
  6. Structured settlements: Structured settlements are periodic, irrevocable payments that are typically court-ordered and paid through an insurance company.
  7. Deferred income annuities: With a deferred income annuity, you pay a lump sum for an irrevocable, deferred income stream at some point in the future.
  8. Long-term care annuities: Long-term care annuities are deferred fixed annuities designed to pay for care over time without consuming retirement savings.
  9. Secondary market annuities: Secondary market annuities resell guaranteed income stream payments for an immediate lump sum.
  10. Medicaid annuities: Medicaid compliant annuities allow one spouse to maintain his or her lifestyle while the other receives Medicaid.
  11. Two-tiered annuities: With two-tiered annuities, you invest upfront, grow that investment during an accumulation period, and receive a guaranteed, irrevocable income stream in the future.
  12. Qualified longevity annuity contract: This is a deferred-income annuity funded by a retirement plan to defer the required minimum distributions.
  13. Charitable gift annuities: Charitable gift annuities are transfers from donors to charitable organizations. Donors receive annuity payments in return. If the annuity’s value is below the donation’s value, the difference is considered a charitable deduction by the IRS.

Can You Sell Your Annuity?

You can sell annuity payments to a settlement funding company for cash. If your annuity no longer meets your needs, it can be sold in portions or in its entirety to a structured settlement buyer or settlement funding company.

You can sell all of your annuity payments, or if you prefer, you can sell a portion of the payments, receive cash quickly up front, and subsequently begin – later – to receive annuity payments again.

How Can You Learn More?

Learn more about selling your annuity payments – or begin the process – by speaking to the funding professionals at Universal Funds. We are ready to serve you and help you meet your financial needs.