Section 1035 of the tax code provides for nontaxable exchanges of a life insurance policy to another life insurance policy, endowment or annuity contract.
With the many changes in life insurance policies and competition between quality companies in recent years, a person (or trust) may be able to exchange a policy for a new one that provides more protection, a lower premium, or both. The pricing structure of whole life, variable life, universal life and flexible premium adjustable life with secondary guarantees are all different. We oftentimes help people secure coverage today with lower premiums and/or a larger death benefit than what they had issued many years ago. This is due to people living longer, underwriting guidelines acknowledging medical advances and other factors.
Additionally, a life insurance policy purchased years ago may have provided the protection needed, but now there is a need to transfer the asset into an income-generating vehicle. More>>
Life Insurance
