Part 1 is The Opening Conversation

Frequently, customers will call requesting a quote on what an investor will pay for the entire remaining payments of their annuity policy. The customer does not wish to provide any information and simply just wants a “price”. Annuity to Sell This is understandable as customers don’t want to be harassed, they don’t want to play any games, and they don’t want to be called a million times by each company they have called for a quote. They just want honesty and up front numbers to ponder.

There are two sides to this coin. On one side, this is not a bad philosophy to follow. Actually, if I had an annuity to sell, I would probably do the same thing. I would prepare a list of finance companies to talk with and I would cross off the companies who I think are trying to low ball me and never talk with them again. What’s wrong with that?

On the flip side of this coin is the unfortunate problem with that philosophy. All too often, there are circumstances in either the type of annuity policy or the life of the customer wherein an offer to purchase the entire annuity policy is not in the customer’s best interest. Many factors affect the ability to purchase the entire annuity policy or just a portion including the type of policy being talked about, the needs of the customer, taking in to consideration the welfare and support of their dependents, the policies of the Insurance companies involved, the financial income of the customer, Federal and State Tax Liens that might need to be paid, Child Support that needs to be dealt with, Bankruptcy issues, individual state laws and opinions of the judges on the bench that will oversee the transaction. The list can go on and on.

From the onset of the initial phone conversation, both the customer and the investor should have an upfront and honest conversation about the transaction to be contemplated. Communication is the key to this process. Clear and honest communication minimizes the questions a customer may have in entering into this unique transaction. Both parties need to speak freely with each other, so that the investor can structure a transaction that will both fit into the needs and requirements of the customer, while still taking into account the factors discussed above. Only then can the customer get the best possible deal.

*When you are ready to get the best deal, call us for some tips on negotiating the best deal. You can even use these tips on us!

Next week, look for information on what will happen once you agree to a transaction