Juliette Fairley - Can you sell part of your annuity payments?
In this video, Juliette Fairley explains that in a structured settlement, an annuity holder can sell all or part of their future payments for a lump sum, but the amount received will be reduced because the factoring company purchases it at a discount to make a profit.
Video Transcript
In a structured settlement, an annuity holder can sell the entire payment, the entire vehicle, or they can sell a portion. And what happens when you sell a portion is that you're selling a portion of future payments in order to receive a lump sum right now, and you must be prepared to receive that money at a discount. So you're selling it at a discount because the person who's buying it, the factoring company that's buying it, is going to be wanting to buying it for themselves as a profit. Yes, you can get a lump sum for a portion of your payments in the future. However, you must expect that you're going to be getting a reduced amount.
