Blockchain Openings for the Sale of Annuities Beyond the Present Market Reach of Industry Players





An annuity arises from a number of circumstances, the most popular been payments that beneficiaries receive on a periodic basis from their pension savings after retirement. It is meant to be a prudent disbursement measure to safeguard the interest of the beneficiaries. The growing wave of blockchain applications has shown that annuities can be traded safely in many ways.

As a result of the similar circumstances that govern structured settlements and annuities, you find that the same companies who buy structured settlements are also involved in the buying of annuities. Why structured settlements are mandated by law to be sold after a court order is obtained, selling an annuity is free from such encumbrances.

To anyone who asks - Where Do I Sell My Annuity? – The following will be useful:

Option 1: Brokerage Companies

Brokerage companies provide services to people who are willing to sell their annuities and they negotiate a rate that enables them to make a profit from the transaction. Your annuity is bought at a discount and this means that you will be offered money less than the total worth of your annuity.

The transaction provides you immediate cash to enable you to meet pressing needs and you are able to go ahead with the plans you have decided to utilize the money on. This works in such a way that whether you want an advance or a full payout against your annuity value, the broker can avail you the service you require. Brokers normally offer an advance payment to keep you calm as the paperwork is being finalized for the eventual payout.

It is normally advised that if you are dealing with brokers, it is preferable to obtain and compare quotes since each company will offer you different values as you negotiate with them. To maximize the payout, make sure you obtain quotes from at least three service providers before reaching a decision.


Option 2: Directly Funded Companies

Directly funded companies offer prompt service when it comes to buying your annuity and offering you lump sum payments. Since they do not have to go through third parties, it is faster to work them. Directly funded companies normally have independent sources of capital and this is the reason the paperwork is concluded faster and promptly compared with other service providers in the industry.

Getting a quote from two or three companies will also prove to be advantageous as there are different conditions at work from one company to the other.

Option 3: Insurance company Units

Insurance companies presently have units that play in the structured settlements arena and they are able to buy your annuity and offer you the lump sum you desire.


Option 4: The Blockchain

The Blockchain works as a distributed ledger with numerous nodes for the update of records as well as storage. Since the regulations of annuities require that brokers keep auditable records, using the blockchain won't be an anomaly in this regard.

An individual would not list his annuities on the blockchain by personal effort, but companies can do this and trade on the stock of annuities they maintain by issuing tokens.

The blockchain can make it possible for the mass sale of annuities with the issuance of tokens to willing sellers who can then cash out as they deem fit.

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