Know Your Selling Options: Full and Partial

One of the biggest misconceptions people have regarding cashing in an annuity is thinking they must sell their entire future payments. You have a couple of options for selling your annuity, so you never have to feel pressured into an option that does not adequately meet your needs.

You have the choice of cashing some or all of your payments. A partial sale allows you to receive a lump sum of money for a portion of your annuity payments and then you will begin receiving any remaining periodic payments at a later time.

There is also the option of selling your entire annuity contract, giving you a greater amount of money. Some people feel more secure selling a portion of their annuity because they know they will still have payments to lean on in the future.

What Can You Expect From the Process?

The selling process is not difficult as the buyer takes care of most of the steps involved. We have broken down the steps in order, so you can understand the process and what to expect.

  1. Research Annuity Buyers – You have multiple options for selling your annuity, so careful research is a must. Taking time in the process of researching your options is important. We have researched countless annuity buyers and have found DRB Capital to be the best choice. Working with DRB Capital allows you to rest assured your financial needs are taken care of promptly and with great care and compassion.
  2. Receive Your Quote – Once you have chosen an annuity buyer, you will visit their website or give them a call, so you can receive a quote. You are not required to accept the quote if you do not feel you are receiving a fair offer. It is wise to think about the transaction for a couple of days before agreeing.
  3. Complete Your Paperwork – To complete the transaction and receive your money, you need to fill out the transaction paperwork. Once your paperwork is finished, you will submit it to the annuity buyer.
  4. Standing Before the Judge – Court approval is required before you can cash out your payments. Presenting your case before the judge is not difficult, but you should offer concise information on why you need to sell.
  5. Receive Payment – Once the judge approves your annuity transaction, the process for transferring your funds will begin and you will receive your money.

The entire process, from start to finish takes between 45-60 days. Most annuity buyers do all they can to expedite the process, but the length of time will vary.

Common Reasons to Cash Out

There are many reasons individuals make the decision to cash out their annuities. These are some of the most common:

Pay off medical bills

Fund college tuition

Buy a home

Buy a car

Start a business

Invest for retirement

When financial dilemmas arise, cashing out your annuity is a sound option. Because not all annuity buyers offer a fair amount, we urge you to carefully research your options to make a sound decision for your financial needs. We have compiled this information to arm you with the knowledge you need to begin the process.

Understanding the Discount Rate

The discount rate determines how much cash you will in return for your future payments. This rate depends on a few different factors, including the full amount of your annuity contract, the dates the payments are due, the number of payments that are due to you, and the amount of each payment.

The higher the discount rate percentage, the less money you will receive out of your full annuity contract. This is the reason you must shop around to ensure you are getting a fair discount rate. We believe DRB Capital offers one of the fairest discount rates in the industry.

The entire transaction should be as transparent as possible and you are entitled to upfront information on the discount rate. If the rate is too high, consider shopping around until you find a better rate that puts more money in your pocket. Make sure you are not rushing the process.

Pros & Cons of Selling Payments

For those who need immediate money, there are many benefits to sell an annuity. Understanding the pros and cons will be instrumental in helping you make the right decision.

  • Instead of being forced to wait years, you will receive your money within a matter of weeks.
  • You will have the money you need to pay off debts and clear your financial stress.
  • You can make a big purchase like a new home or car.
  • You will be able to pay for your own or your child’s college education.
  • You can invest your money for a more financially favorable interest yield.
  • There is less financial security when selling the entire annuity contract because you will not receive future payments.
  • With a greater amount of money, there is a greater risk of making poor financial decisions.

Although most people feel the pros of selling their annuity payments far outweighs the cons, these are things to consider when making a choice. The more you weigh the positives and negatives, the better equipped you will be to decide.


People often have a wide range of questions when it comes to selling an annuity contract for a lump sum of money. It is understandable you may feel a little apprehensive, but we are here to help you understand how simple the process truly is and how you can get the best offer. With this FAQ, we hope to answer some of the questions you may have, so you will be better informed on the process.

Is there a difference between a structured settlement and an annuity?

There is often a great deal of confusion when it comes to differentiating between these two. While they are both financial tools, they are not the same thing. The main difference between the two is an annuity is bought, while a structured settlement is awarded from a legal battle.

Are there advantages to owning annuity contracts?

Purchasing an annuity allows you to invest your money without having to pay taxes right away. There is also no annual limit on the amount or number of contributions. When your money is invested into an annuity, the amount compounds each year and this offers a greater financial advantage over other types of investment options.

Can an annuity be sold?

Selling your annuity is fairly easy and offers you the ability to receive cash sooner. Because this is a legal process, a judge must approve the transaction. If the judge does not grant approval, the transaction will be halted.

Who buys annuities?

Companies like DRB Capital will purchase all or a portion of your annuity contract, so you can have the money you need in a short amount of time. You have the legal right to cash in your annuity payments to any third-party, but a judge must approve the transaction. Although the lump sum payment will be less than the full value of the annuity contract, you will receive your money when you need it most.

Why does a judge need to approve the sale?

You might wonder why a judge would care if you sold your annuity payments, but there is a reason for court involvement. Although it might seem to be a bit of pain going to court, the laws regarding judge approval were put into place to protect individuals like yourself, so they would make the right decisions and not be taken advantage of.

How can you know if you should sell your annuity payments

There are many good reasons for cashing out payments. Sometimes life situations are unavoidable and the following are some of the scenarios where it might be wise to sell annuity payments.

  • Loss of a job
  • Medical payment debts
  • Make a large purchase
  • Investing

How much money will you get for selling your annuity?

One of the most common questions people have revolves around how much money they can expect. It is natural for you to want to know this amount, so you can decide if it is worth it to sell.

The amount you receive cannot be answered in one simple question. It will depend on the buyer’s discount rate offer.

Which companies purchase annuity payments?

DRB Capital is one of our favorites because they offer fair discount rates. We have found them to be the most dedicated to the happiness of their customers because they work to handle each transaction with the utmost level of professionalism. In reality, you have many choices of buyers, so it is wise to research carefully. Remember: you will not be able to receive the full value of your annuity contract, but you will receive a lump sum that has been discounted according to the buyer’s offered discount rate.


Now that you are more aware of the process and the options you have for making a decision on whether or not to sell your annuity payments, you will be able to make the best decision for your immediate and future financial needs.

DRB Capital offers one of the fairest discount rates in the industry. They are available to answer any questions you have and will work to get you your money in an expedient manner. Call them now to get a free quote.

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