A huge emergency had just occurred in your home and you are in the immediate need of the huge amount of cash. All you have to solve your liquidity problems is your annuity plan. There's no doubt that the obvious solution to your problem is to sell your annuities, right? In this situation, you really don't have much choice.
Annuity Plan
Selling them would help a lot, even if you don't get the amount of your annuity it's really worth it. However, if you are tired of paying your annuity plan and you just want to get rid of it, or you are simply impatient to get your hands on your cash, or you are anticipating a big expense in the near future, it is worth thinking more than a hundred times. It is a fact that many people do not really know or fully understand our policies and contracts on insurance and annuities.That's why there are a lot of fake companies out there who take advantage of the ignorant people of their rights and the value of their annuity plans. Companies that pay much less than these people deserve and take a lot longer to issue the payment if they ever do.
So to protect yourself against such predators, you must at least arm yourself with the basics. You should at least understand the basics of your annuity plan, the things you have to consider and the right questions you should ask before selling your annuity.
Consider Your Type of Plan
First, consider your type of plan. There are several types of annuities and their sales decisions must be based on them. Each type of annuity works differently with each other. There are two main types of annuity and are fixed annuity and variable annuity. Fixed annuities are those that pay a fixed rate of return, whereas variable annuities are those that allow the holders of plans to invest in stocks and bonds.Therefore, the rate of profitability in the variable annuities varies according to the progress of the investment and the economic state of the market. However, these two sometimes branch out to other different types according to payments and other terms.
Other forms or subforms of annuity come as a deferred annuity and immediate annuity. The deferred annuity gives you a guarantee that your investment will increase in value and you can sell it when you need income. On the other hand, the immediate annuity allows you to liquidate your investment within a short time after purchasing the plan in a lump sum payment. The best thing about this plan is to have the option of living income with a refund payment. This ensures that the total value of your contract would be paid by passing payments to your beneficiary.
Now, the next thing you should consider is whether selling your annuity plan would really benefit or clinging to it a while longer could provide more benefits later. The first basis for the sale of its annuity are the two main types of annuities: fixed and variable.
Fixed Annuity
If your annuity is a fixed annuity, holding on to it until before you retire is the best option. This annuity provides a stable source of income for the rest of your life after you retire. After all, that's why it served as the first annuity, security.However, the return rate in this plan is not insured to keep abreast of the rate of inflation. So if you really want to sell it, the best time is before you retire.
However, if your annuity is a variable annuity, you also need to consider the right time to sell it. Remember that this plan does not guarantee a good rate of profitability, so the sale must be programmed with the market performance.
Sometimes selling it a previous time would be beneficial than selling it to later when the market is down and you really need the money. This would put you in a situation where you don't have much of an option, but sell it to a lesser value.
