Can I Sell My Long Term Annuity Back To The Insurance Company?

Date : September 13th, 2009Category : Annuity Immediate QuoteAuthor : Editor3 Comments

i won a lawsuit in 1985 and they put the money in an annuity at executive life of new york

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This entry was posted onSeptember 13th, 2009 at 2:40 pm. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can Trackback..
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  1. richard t

    I would advise against it. Why? Depending on how much you have in there:
    1) The money you get will be reported as additional income. So this may bump you into a higher tax bracket.
    2) You will pay income tax on the gains.
    If you had the account for less than 8 years, you will pay surrender charges. Which doesn’t matter to you since you had it since 1985.
    I would rather hold on to it and receive payments for life. Though, you want to check the contract on what kind of settlement option you picked. There are four settlement options you can choose from:
    1) Straight life annuity. This is the largest payout option and is only payable to you. If you die during the payment period, the payments stop.
    2) Life annuity with period certain. This is the second largest payout. This means if you die during a certain period, the payment will continue to your beneficiary until the period ends. For example, lets say you select life annuity with 10 year period certain. If you die in the 6th year, your beneficiary will receive the payments for the remaining time, which is 4 years. If you outlive the period, you will continue to receive payments, but the beneficiary will get nothing when you die.
    3) Joint and Survivor Annuity. This is smallest payout of all three. This means if you die during the payment period, the payment will continue to your beneficiary until she/he dies.
    4) Lump sum settlement annuity. This is where you take all the money out. You want to be careful here. This can put you into a higher income tax bracket and you will owe income tax on the gains.

    September 13, 2009 3:15 pm | #1
  2. Doing the Right Thing

    It is absolutely impossible to answer this question without reading your contract. The fine print of your policy will dictate if this is possible and if so, what the surrender cost(s) will be. If you can’t locate a copy of your contract, call the annuity company – executive life of ny.

    September 13, 2009 3:17 pm | #2
  3. John Y

    It depends upon the company

    September 13, 2009 3:39 pm | #3