An Annuity is a very unique financial tool designed with the goal of helping individuals accumulate funds for their retirement and/or turn an established lump sum of money into a guaranteed stream of income for life. If you are considering selling your annuity payments, Lump Sum Funder is able to provide a highly professional team designed to make your process as rapid and convenient as possible. This can be a complicated decision to make, and we want to make sure that you are in the best hands possible.
Lump Sum Funder is a highly specialized company designed to assist you in turning your annuity or structured settlement payments into one lump sum of cash in the shortest time possible. Our goal is to do the leg work in order for you to receive the most money for your payments. Lump Sum Funder routinely assists our clients with quick, no interest cash advances while their specific cases go through the various legal stages and receive court approval. Once we have approval from your local judge, we are able to wire your full sum directly into your account within 24 hours!
What is an Annuity?
An annuity is a contractual agreement between an individual and an insurance company that provides a set amount of money to be dispersed on regularly scheduled intervals. These disbursements are generally on a month-to-month basis and can either begin immediately or at an agreed upon time in the future. People enter into structured settlements because it will get them more money from the insurance company over a longer period of time compared to electing to receive a lump sum up front.
At Lump Sum Funder, we recognize that life events can happen and put you in a position where you are in need for additional money. Several popular reasons people decide to cash out on their future payments include paying for school tuition, extra money for bills, putting a down payment on a house, and for extra funds to start up a new business.
Different Types of Annuities
We are able to provide lump sums for many forms of annuities; below is a list of the most common types. Which kind applies to your situation?
- Immediate Annuity: These can also be referred to as income or payout annuities. As the name suggests, these specific types initiate payments right away and are generally selected by individuals that are in need of cash to cover their expenses as soon as possible. Payments are usually structured to be received on monthly, quarterly, semiannual, or annual basis.
- Single Premium Fixed Annuity: This is a type of annuity that contractually guarantees a set amount of money for a court approved period of time. Many single premium annuities are tax-free. Annuities that are purchased for a claimant as a form of accident compensation will always be a single premium annuity. That being said, because the annuity serves as a structured settlement, federal law mandates that any funds taken from the account are to be tax free. This includes any principal as well as any accrued earnings.
- Structured Settlement Annuity: This form of structured settlement is a specific type of annuity that is paid out by the defendant in a personal injury suit that is paid out the the victim of the injury in future periodic increments. Under the Internal Revenue Code, these payments are rendered tax-free.
- Life Contingent Structured Settlement Annuity: This is very similar to the aforementioned “Structured Settlement Annuity,” however upon the death of the recipient, the payments will cease.
- Annuitized State Lottery Prizes: Much like with other structured payment programs, this form of annuitization ensures a reliable incremental payment for a predetermined amount of time until the sum is paid out in full, or the receiver passes away. Choosing an annuitized funding option for high lottery payouts can sometimes render the recipient more money, as the state tax rate can be lower for annual installments than for a lump sum.
Lump Sum Funder has worked with many clients, each with their own unique cases, so we are familiar with how complex individual settlements can be. No settlement is going to be exactly like any one before it. That being said, we have a well-defined, satisfaction-guaranteed pipeline that all of our cases travel through that insures our clients are receiving the most money in the timeliest manner:
- 1) Make a quote and send a disclosure: After we have spoken with you and determined a purchase price, we will send you a disclosure. A disclosure is simply our written offer to you that shows the net lump sum you will receive in exchange for the exact payment(s) that we are purchasing. After you have acknowledged that you received the disclosure, we can start the countdown for the required wait period established by your state. This can take between 3 and 13 days.
- 2) Sign paperwork and request a court date : once we have all of the necessary paperwork and legal documents, a petition is then filed at your county courthouse. After your case is reviewed, you will receive a court date where a judge will approve the settlement and grant your cash settlement.
- 3) Attend court and receive Judge approval: When you go into court, the judge will determine if selling your payment(s) is in your best interest. In order to determine this, a judge will examine your reasons for cashing out.
- 4) Receive acknowledgement from Insurance Company: After we receive an acknowledgement from your insurance company stating that the transfer has been completed and approved, we can then send you a check or wire your lump sum directly into your account within 24-48 hours.
How to Sell your Annuity Payments
Please don’t hesitate to contact us for more information regarding how to sell your annuity! Allow Lump Sum Funder to help you take control of your financial future. Our professional team will walk you through the entire process of selling your payment and establish a plan that will work best for you!
Please note that Lump Sum Funder is NOT a broker. We are a direct buyer of structured settlements, annuitzed payments, lottery payments, and investment annuities.