Generally annuity is defined as a fixed payment given to someone each year, a person receive these payments for the rest of their lives. Annuity can also be defined as an insurance or investment, on which person receives fixed amount of profit annually.

However, many people consider selling their annuity payments. We often hear people asking insurance companies or brokers to sell their annuity payments. There are number of reasons because of which people consider or want to sell their annuity payments.

It could be because of the financial constrains or dire financial needs or in some cases the annuity do not apply to them anymore. There are different channels through which annuity can be sold. The first is the insurance company from which you receive your annuity payments.

You can first sell your annuity payments to the insurance company and in return they will pay you annuity payments lump sum equal to the current value of the future payments that are due to you.

However, this option is only available with some insurance companies and not with all of them. You can also sell your annuity in a secondary annuity market. This market offers annuity owners to sell their future annuity payments for lump sum money in return.

The amount you will receive by selling your annuity payments would be equal to the amount expected to be received by you on the basis of interest rates at the time of sale, financial strength and if your annuity has a death benefit.