Types of 1035 Tax Free Exchanges

There are THREE basic types of “ten thirty-five exchange” or “1035 exchange:”

1. Life insurance policy to a life insurance policy, and
2. Life insurance policy to an annuity policy, or
3. Annuity policy to an annuity policy.

All three of these types of exchanges are tax free as long as the proper procedure is followed. This is where an experienced life insurance agent can help.

1035 Exchanges generally do not apply to any term life insurance, or true endowment insurance policies, although there are some exceptions.

WARNING: One cannot transfer an annuity to a life insurance policy, under Section 1035, although there is a method where an annuity can be used to pay for a new life insurance policy, and we can show you how. If you have an annuity, and need to use your annuity values to pay new or existing life insurance premiums, then you should contact us today.

For a FREE initial consultation, call today: (800) 680-5596

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