In some cases, you might be awarded an annuity settlement if you are involved in a personal injury case or another suit where the insurance company decides to settle. While a lump of cash would sound nice to most plaintiffs, a judge may rule that it makes more sense for the plaintiff to receive an annuity instead.
There are a number of scenario that might warrant this judgement. For example, the plaintiff might be under the age of 18, and it's decided that he or she should receive the money in annuity payments instead for his or her own protection. Additionally, a plaintiff could have a history of making poor financial decisions, which again may make annuity payments a safer long-term option.
Whatever the reason, there is no doubt that annuity payments could offer someone stability and allow them to receive a steady stream of income. There may potentially be some tax advantages of receiving annuity payments as well. However, this is not to say that you will want to receive annuity payments forever. In some cases, it might make more sense to sell your annuity payments for a lump sum of cash. The following would be be examples of those cases:
- You want to pay down your debt
- You have medical bills or an upcoming surgery
- You want to go back to school or pay for someone else's tuition
- You need to liquidate your assets
- You want to take advantage of a new investment opportunity
If you don't want to hold on to some or all of your annuity payments, you should consider selling your annuity payments for a lump sum of cash. You can find annuity buyers that will purchase your annuity payments for money you can use right away. If you decide to go this route, just remember to do your research and question the buyer about the payment schedule, it's certification, and other issues. You should also determine if you will need your annuity buyer to help you navigate the legal issues if you need to go before a judge and explain why you want to get out of your annuity payments schedule.