Selling an annuity isn’t as easy as it sounds. Finding a buyer that will give you close to what you’ve paid in to it, might not happen. An example buyer would be Prudential or Transamerica Life Insurance or West Coast Life Insurance. A time to sell an annuity would be when these types of companies are hungry to buy – along with your purpose for wanting to sell. When you want to sell an annuity that has already been first issued, you are dealing in the secondary market. Just like second-hand clothing stores: the article of clothing is being bought and used a second time around.
The secondary market compared to the primary market (where you first purchased your annuity) is not as regulated. Laws regarding the secondary market are just now being developed. You are on a website of a lawyer, Eugene Ahtirski, who has helped to draft some of those laws because he sees how “…anything goes…” in the secondary market could exist, still exists and did exist and how easy it is for a consumer to get ripped off.
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