Annuity is simply put similar to a structured settlement. It deals with an insurance company paying you their due premiums to you on a set time basis. The time frame is usually on a monthly basis but it may also vary depending on what the insurance company has dealt with you during the time you bought the insurance policy from them.

You may wonder now, why sell your annuity? You are already getting money! But what if you need the money right now? One good example is renovating your house. You just cannot hold your expenses right now! By selling your annuity right now, you get your whole lump sum right here, right now. By selling your annuity, you do not have to wait to receive the reward and insurance money you need. As you can see, getting an annuity may be insurance but by selling it, you can actually use the money on something else like your home.