We Buy Investment Annuity Payments
What Is An Investment Annuity?
An annuity, in simplest terms, is a fixed amount of money paid to a person each year. While simple in concept, in reality there are many different types of annuities, each with its own set of attributes.
The following is a non-exclusive list:
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Single premium investment annuity (SPIA)—An upfront premium is paid, usually to an insurance company, in return for future weekly, biweekly, monthly, biannual, annual, or lump sum future payments, sometimes for life, sometimes for a fixed period of time. Payments are received as a blend of interest and principal. Taxes are usually due and owing on the interest portion of the investment.
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Individual Retirement Account (IRA) annuity—This can have similar characteristics to a SPIA but interest income often accumulates tax free during the term of the annuity. Sale and assignments of these types of annuities can be restricted.
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Pension annuity—These annuities can be found in defined benefit government or company pension plans. Sale and assignments of these types of annuities are restricted.
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Variable annuity—These are often tied to stock market indexes or other measurements of growth. Payments are not fixed and ascertained, but rather can change from period to period.
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Genex Capital buys SPIAs. We do not buy pension annuities or variable annuities.
Can I Sell My Annuity?
Yes, you can sell your investment or other annuity with some exceptions.
Structured settlement funding companies such as Genex Capital make it a business of buying SPIAs and some other annuities. Unlike structured settlements, no court transfer order is required and the transaction can be completed within two to four weeks.
With some limitations, you can generally decide how much or little of the annuity payments you want to sell and keep. At Genex Capital we work with you to find the best solution that fits your financial needs.
If you do decide to sell all or some of your future annuity payments then at the completion of the transaction, you will receive a discounted present value lump sum payment. Remember that in most instances the proceeds of sale may be taxable, depending on your circumstances. You should consult a tax advisor for more information in this regard.