Selling Payments to Pay for Unexpected or Major Life Events

Selling annuity payments for a lump sum of cash can help cover accruing debt or provide relief from unexpected life events.

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Catherine Byerly, Writer
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    Catherine J. Byerly

    Catherine J. Byerly

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    Catherine J. Byerly has worked in digital communications for the past four years, handling everything from award-winning, on-air public radio casts to writing in-depth investigative stories for business news sites.

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    Emily Miller
    Emily Miller, Managing Editor for

    Emily Miller

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    Juliette Fairley
    Juliette Fairley, Business and Financial Reporter

    Juliette Fairley

    Business and Finance Reporter

    Juliette Fairley is a business and finance reporter who graduated from Columbia University. She's written for the New York Times and the Wall Street Journal.

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  • Updated: October 20, 2023
  • 4 min read time
  • This page features 4 Cited Research Articles

Covering Large Expenses

Buying a car after yours breaks down, covering medical expenses, paying for a divorce — these are all life events you may not be able to foresee. When they occur, they almost always come at a cost and need to be addressed immediately. Selling all or part of your annuity payments can give you the flexibility to adapt to these life-changing circumstances.

A lump sum of cash allows you the freedom to alleviate larger debt, rather than receiving smaller periodic payments. While income in any form can be helpful, an influx of cash may be the answer to your current financial woes.

Here are some of the major life events you might be able to afford after receiving immediate access to your annuity payments.

Buying a Car

Life doesn’t stop because your car stops. If you know you can’t rely on your vehicle to live the life you want to live – like getting to work on time and being able to spend time with family – then it’s probably time to get a new one instead of continually repairing a lemon.

Access to your annuity savings could provide the down payment you need for a new or used car. Buying a new car is the most expensive option — not only will the car itself cost more, but a new car will also lose around 22 percent of its value in just the first year. However, new cars will need fewer repairs than used and will last longer.

Buying a used car is a great way to get a safe, reliable vehicle for less money. Many car dealerships offer cars that are “certified pre-owned,” meaning the manufacturer has examined, refurbished and certified the vehicle.

Purchasing a Home

Owning a home is one of the biggest financial decisions you can make. Buying a home turns part of your living expenses into assets. Instead of paying someone else, you’re paying yourself in equity.

For prospective home buyers, using an annuity lump sum can help secure an affordable mortgage. Putting money toward a down payment offers significant long-term savings on your home – decreasing interest, loan principal and monthly payments.

Increasing a down payment for a $300,000 home by just 5 percent can reduce the total cost of the mortgage by as much as $30,000.

With more money invested in the house via a down payment up front, you’re showing the bank you’re serious, and you’re also saving yourself money.

Happy woman, fanning 100 dollar bills

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Stop waiting for future payments. Sell your annuity or structured settlement for a lump sum now. Get a no-obligation quote today and explore your options.

Paying Off Debt

According to the Consumer Financial Protection Bureau, Americans pay $120 billion in credit card interest and fees every year. Add in a mortgage, car payments and student loans, and it’s easy to see how you can get overwhelmed by debt. For some, a small amount of debt that goes unpaid can grow over time thanks to interest rates and late payment fees. Debts escalate rapidly for people who are out of work or who have low-paying jobs.

Access to your annuity can minimize your debt and set the stage for better budgeting habits. Establishing a successful budget requires you to make a long-term strategy for managing money.

Covering Medical Expenses

Poor health, which may lead to numerous tests, scans and doctor bills, can cause debt. Nearly 43 million people have unpaid medical debts that have gone into collection, according to the Consumer Financial Protection Bureau.

Ignoring these bills can have serious implications, including damage to your credit score, liens on a home and even being sued in court.

Some 11 percent of Americans have liquidated a retirement account to pay for medical expenses. But the good news is that selling part or all of your annuity savings can be the answer to becoming debt free and financially independent.

In the event you have a large debt that requires your immediate attention, your annuity savings can help you through emergency situations.

Affording Your Divorce

Admitting a relationship is over can be emotionally difficult, but proceeding with the decision to divorce can be even more devastating financially and the fall out from not leaving is immense.

According to GoBanking Rates, the least expensive state for divorce is Wyoming. The most expensive is California and the quickest is Alaska.

Overall, the average couple spent $12,800 on their divorce, according to a nationwide Nolo survey.

Divorce costs can include not only legal fees but also mediation fees, annuity surrender fees and other expenses. Selling your annuity payments can help to minimize your divorce fees, alleviating stress from financial woes.
Trying to split assets amicably can take months or years in court.

It is highly recommended to have legal counsel during this process to protect your rights and identify reasonable portions of shared investments.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: October 20, 2023