posted by admin on Aug 5
An individual may opt to buy a financial product or investment vehicle sold by financial institutions to invest or save for his future. Insurance, annuity, and bonds are examples of investment vehicles.
Annuity is an arrangement to receive and grow funds from a person, and then, pay the individual a stream of payments at a later point in time, in most cases during retirement, when the individual has no more source of income to support and sustain his needs. This is a way of securing that one has a stable and a guaranteed source of income during his retirement.
Annuities today, as well as other structured settlements, can now be sold by the owner or investor to a financial firm in exchange for a lump sum to cover other financial obligations such as debts. In this transaction, the annuitant sells his rights to his future stream of payments. Every year, a large number of annuitants sell their annuities to financial institutions. With the money they get in selling, most of them avoided the possibility of filing for bankruptcy, especially those who are in deep financial crisis.
There are many companies that offer settlement factoring. It is advisable to make a research about your options first before deciding to sell your annuity to them as different companies may offer different rates. The internet is one of the convenient sources of such information.