I want to sell my annuity payments lump sum, we often hear people saying that and wonder that why do they want to sell their annuity. In order to understand this we must first understand what really annuity is.

Annuity is basically a fixed payment given to someone each year, for the rest of their lives. It is kind of insurance or investment, which a person receives annually. Some people want to sell their annuity to receive payments in lump sum.

Some wishes to sell annuity payments lump sum. The reason behind this selling is that when people actually purchase their annuity they were in need of money or due to dire financial situation. People choose to sell their annuity payments lump sum due to many reasons.

Most of the times the reason is that having an annuity may not apply to receiver so they decide to sell their annuity payments lump sum. Now if you have an annuity for which you have not started receiving payments you have an option of getting it cashed.

However, it must be noted that if you have already started getting your periodic payments, your insurance company may give you an option to receive annuity payments lump sum equal to the current value of the future payments that are due to you.

This is generally known as commuted cash or in simple language exchanged money. However, this option is not given by most of the insurance companies once you have started receiving the annuity payments.

Therefore if you want to sell your annuity you must decide it in advance or choose an insurance company which gives you the option of selling your annuity payments lump sum.