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The Basics

Selling Annuity Payments For A Lump Sum of Cash

Life may have changed quite a bit since you first set up your annuity. If so, it’s a good time to look at your annuity a bit differently. Peachtree Financial Solutions can turn all or some of your future annuity payments into one lump sum, so that you can put your money to better use – whether it’s for a bigger home, a more reliable car, tuition, or to pay off debt. You don’t have to wait. Find out how Peachtree can help you cash in all or part of your annuity payments.

What Are Annuities?

An annuity is a fixed or variable sum of money paid in increments over a predetermined period of time. The general purpose of an annuity is to provide a steady stream of income for the recipient. Annuities are used in a wide array of applications, from retirement plans to legal settlements to survivor benefits and more. In addition, some inheritances can be set up as annuities, and some annuities themselves can be passed down to a beneficiary.

In many annuities, the recipient collects the same amount of money each year, although some annuity contracts can have variable payments.

Types of Annuities

An annuity can be created for many different reasons, and Peachtree works with recipients of nearly every kind of annuity. The most common type is a Single Premium Annuity and it can be paid out in two different ways:

Single Premium Immediate Annuities

This type of annuity begins paying out within a year of being purchased. This type of annuity is purchased with the one-time investment of a lump sum, either from the purchaser’s personal savings, a retirement plan, or an inheritance.

Single Premium Deferred Annuities

This type of annuity is set to be paid out at a later date. This annuity type is purchased with the one-time investment of a lump sum, either from the purchaser’s personal savings, a retirement plan, or an inheritance.

Deferred Vs. Immediate Annuities

An immediate annuity offers a steady, predictable income starting within a year of purchasing, while also allowing you to determine the payback period and riders attached.

Deferred annuities delay the payment until the investor elects to begin receiving them. Deferred annuities consist of first investing money into the account, and then the income phase when it is converted into an annuity and payments are received.

Understanding your annuity options and how they affect your sale is an important part of planning your financial future, and Peachtree Financial is here to help.


Although most retirement plans have transitioned to contribution plans like 401(k) and IRAs, annuities are still offered as part of government and other legacy pension options. It’s up to the retiree to determine how the payout will be made, and how any survivors will benefit from the annuity. Peachtree Financial Solutions cannot purchase payments from pensions or employee-sponsored retirement accounts.

Types of Annuity Payment Structures

The cash an annuity can generate depends on a wide number of factors, from how the economy is performing, to the various riders which were added to it. However, one of the most important factors that is taken into consideration when selling an annuity, is the payment structure you’ve chosen.

There are literally thousands of different varieties of annuity products and contracts. However, most annuities fall into one of the following general categories of payment structure:

Fixed Annuities

Periodic payment from a fixed annuity is the same for the duration of the term, and is usually funded by a stable rate of interest from the insurer.

Variable Annuities

Variable annuities are funded by investments that are more prone to fluctuation, such as stocks and bonds. As a result, the periodic payments can vary over time.

The payment structure of your annuity plays a major role in determining whether or not we can purchase your annuity and the amount of the cash lump sum you’re we can offer you. For more information on how your repayment structure will affect your annuity payment sale, get in touch with one of our representatives.

Guaranteed vs. Life Contingent Annuities

Guaranteed payments will go to your beneficiary in the event that you pass away before all your guaranteed payments are made. Life-contingent payments will only be made as long as you are living. We can purchase both types of payments.

Annuity Riders

Along with payment structure, cash out options are also determined by specific riders that have been put in place on your annuity. Like a traditional insurance policy, riders can be added to your annuity. These modify the basic agreement, expanding or restricting the policy to give it the coverage and terms you want.

Medical Annuity Riders

A medical rider changes the scope of your annuity based on health or life events, providing additional benefits should the unexpected occur. Some common medical riders include:

  • Death Benefits: In many cases, annuity payout is life contingent, meaning that the insurance company only continues payments for as long as the purchaser is living. A death benefit rider lets your family continue receiving installment payments, or accept the balance of your investment in the form of a cash payout.
  • Long Term Care: This rider allows you to access the balance of your investment if you’re transferred to an assisted living community.
  • Impaired Risk: If you contract an illness that substantially reduces your life expectancy, an impaired risk rider may increase the monthly payout in the annuity.
  • Terminal Illness: In the event of a terminal illness diagnosis, this rider allows you to access a portion or even the remainder of your premium, likely without paying any surrender penalties.
  • Unemployment and Disability: Like the terminal illness rider, if you suffer a disability or lose your job, this rider will give you access to your premium. The provider will likely cancel all buy-back fees.

Financial Annuity Riders

Unlike medical riders, financial modifiers adjust your payments due to external factors, such as inflation. These riders can modify the repayment terms, or allow you to access all or a portion of the remaining premium.. Each insurance company will offer their own list of financial annuity riders, but some of the most popular include:

  • Inflation Adjustment: One potential downfall of a fixed annuity is that the purchasing power of a dollar tends to decrease over time. An inflation-adjusted annuity automatically increases the monthly payment to attempt to compensate for this.
  • Commuted Payout: Adding a commuted payout rider to an immediate annuity allows you to withdrawal a lump sum should an unexpected need arise. In most cases, this is a time-limited rider, only available during the first few years of payments.
  • Variable-Only Riders: Often used to supplement retirement income, a variable annuity gives your investment the best chance of growing, but also comes with certain financial risks like investing in stocks and bonds. To help mitigate the risk, many insurance companies offer special riders:
    • Guaranteed Minimum Accumulation Benefit: If, after the growth phase of your annuity, the total value is less than the total premium paid into it, a GMAB rider will adjust the balance to equal the premium, less any withdrawals made.
    • Guaranteed Minimum Income Benefit: The GMIB rider allows for a minimum monthly payment regardless of the performance of your annuity.
    • Guaranteed Lifetime Withdrawal Benefit: Typically, you have to convert a variable annuity to an immediate fixed annuity to receive an annual income for the rest of your life. The GLWB rider will allow you to draw on your variable annuity without converting it.

Benefits of Selling Annuity Payments

Life is unpredictable, and what made financial sense when you purchased your annuity might not be best for your today’s reality. Perhaps debt is hurting your credit score, you need instant access to cash to pay medical bills, or you want to make a sound investment like a house or education. Selling your annuity payments for lump sums opens the possibilities and places your financial future in your hands.

Making Your Decisions

At Peachtree Financial Solutions, we promise to always explain your options clearly, so that you can make informed decisions every step of the way. If you’re considering selling annuity payments, you should ask yourself a few questions.

-Have my financial needs and goals changed, and are my annuity payments keeping up?
-Do I want to leave money to my heirs?
-Do I want more financial flexibility and control over my assets?
-Is an annuity still the best use of my money today?

You’ll have more questions, and we’re here to discuss them. Call or contact us today!

Peachtree does not provide legal, tax, or investment advice. Please contact independent professionals for those services.

Our Process

Because it’s already your money, cashing in all or a portion of your annuity payment stream can be a relatively fast and simple process. Peachtree Financial Solutions has years of experience working with most insurers and an understanding of the many types of annuities available to the market. This experience allows Peachtree to further streamline the process of purchasing your annuity payments.

Steps & Timing

Step 1: We listen.

Tell us a bit about your annuity, and your financial needs. We’ll answer any questions you might have.

Step 2: We give you options.

We’ll go over your options, such as how many payments you’d like to sell, whether you’d like to continue to receive a portion of your periodic payments, and other variables.

Step 3: We provide a quote.

Your Peachtree representative gives a no-obligation quote (typically multiple option quotes) for you to consider.

Step 4: Paperwork

We will need a copy of your annuity and our signed contract, along with other documentation, depending upon your transfer request and the company that issued your annuity.

Step 5: Annuity company review.

We will provide the required documents to the insurance company that issued your annuity. The insurance company will then make the necessary changes to the policy so that we can complete the sale. 

Step 6: You receive your money.

Peachtree will get you your purchase price by check, money transfer, or ACH – sometimes in as little as two weeks. Transaction times vary based on the insurance company and individual circumstances.

Our Customers

We’ve helped tens of thousands of people achieve their goals, and we have extensive experience in every U.S. state. That means our experience allows us to help you to meet your needs and your unique goals.

Our Dedicated Representatives

One of the reasons people love working with Peachtree is our team of experienced representatives. Once you begin the process of selling your annuity payments, we’ll match you with a dedicated representative who’s well-versed in annuities, and you’ll work with this same representative throughout the entire process.


We know that behind every customer is a unique story; therefore the documents that can be required are different for each person. Some of the more common documentation needed includes an annuity contract and a benefits letter.

Your dedicated Peachtree representative will work with a team of experienced underwriters to help determine what documentation is needed and how we can help gather the appropriate paperwork.

Values of Different Types of Annuities

Because there are so many kinds of annuities, and each will typically be further customized for each recipient, there’s no one answer to determine how much your particular annuity payment stream is worth. For example, the size and frequency of your annuity payments, as well as the timing of these payments, can impact their value quite a bit.

The best way to determine the value of your unique annuity is to talk to a Peachtree representative, who can get you an accurate, no-obligation quote quickly.


Why do people sell their payments?

The simple answer is: Life changes. Payments that come periodically don’t always keep pace with the many challenges and opportunities that arise for all of us. Selling annuity payments can make a difference in your life and help you meet your goals, like moving into a bigger home, buying a more reliable car, paying tuition and other bills, or getting out of debt.

Is selling my annuity payments legitimate?

Absolutely. Just be sure to choose a company with experience and a solid reputation, like Peachtree Financial Solutions.

Do I have to sell all my payments?

No. You can cash out an annuity by selling all your payments, or you can just sell some of the payments. You may choose to sell enough payments to meet your current needs, and keep some portion of your payments for future financial security, if you so choose. Your Peachtree representative can help structure your sale to determine which payments you should sell to make sure the plan fits your specific needs.

Will I have to go to court to sell my payments?

Unlike structured settlement payments, the sale of self-owned annuity payments is not a court-ordered process.

How long does the whole process take?

The process varies based on insurance company and individual circumstances. Some transactions can be completed in as little as three days, but on average the process takes 30 to 60 days.

How much can I expect to receive when I sell annuity payments?

Many factors go into determining the amount of money we can offer you for your annuity payments. Contact a Peachtree representative today for a customized, no obligation quote.

Can I sell a Single-Premium Annuity that I bought myself?

Yes. We can usually purchase nonqualified, single-premium annuities.

What’s the difference between guaranteed payments and life-contingent payments?

Guaranteed payments can go to your beneficiary in the event that you pass away before all your guaranteed payments are made. Life-contingent payments will be made only as long as you are living. We can purchase both types of payments.

Can I sell my pension or an employer-sponsored retirement account?

No. We cannot purchase pensions or any other kind of retirement account sponsored by an employer.

Are there any hidden fees?

When you sell annuity payments, you can expect legal fees, insurance processing fees, and program fees – but none of our fees are hidden. All fees and costs are explained on your disclosure statement. Be sure to read it carefully.

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