Other Annuities - Resource Center

FREQUENTLY ASKED QUESTIONS

Q. Am I legally able to sell my annuity? A. Many annuity owners have the option to sell their annuity; Singer has been purchasing annuities for years. Annuity contracts can be complex, and although we can purchase many types of annuities at various stages in their contract life, each situation needs to be reviewed on an individual basis. Please contact our annuity specialists if you're interested in a free evaluation of your annuity contract

Q. Is it wise to sell my annuity? A. There are plenty of reasons people choose to sell their annuities. Some inherit their annuities and simply would rather have a lump sum than monthly payments. For others, their needs change, causing: a modification in life insurance product; a change their investment or estate planning strategy; or decide that their original reason to buy the annuity no longer applies. With the money, clients start new businesses, pay off debt, pay for school or buy homes

Q. Will you buy just part of my annuity? A. Yes, frequently partial buyouts are the best option for our clients. We help people dilligently review their needs to determine how much of their annuity they should sell, and build a purchase plan that provides the most flexibility possible

Q. How long does the process typically take? A. Singer typically funds lump sum transacgtion within two to three weeks from the time we receive a completed contract. Singer knows how important the money is, but each client's circumstances are unique so completion times may vary. Singer works very hard to complete every transaction as quickly as possible

Q. My annuity has a "No Surrender" clause or a "Surrender Fee?" - can I still sell it for a lump sum? A. In most cases, "No Surrender" clauses and "Surrender Fees" refer to your ability to surrender your annuity back to the issuing insurance company. Singer can still purchase your annuity, avoiding the "Surrender Fee" and "No Surrender" conflicts with the insurance company

Q. What are the tax consequences of selling my annuity? A. Current tax law states that any gains you incur as a result of selling your annuity are subject to ordinary income tax. Additionally, if the sale of your annuity occurs before you rach age 59 ½, any gains may be subject to a 10% federal tax penalty. Of course, the tax consequences of your decision to sell your annuity depends on your individual tax situation. Singer strongly advises each client to consult with their financial or legal advisor to determine the exact consequences of selling an annuity

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