1035 Exchanges

If you meet some clients who end up doing a replacement, they may have money built up in their policy that is theirs once the old policy is cancelled. Instead of them getting a check for this money and paying taxes on it, it can be transferred into the new policy. The process is referred to as a “1035 Exchange.”  A 1035 exchange allows the replacement of an annuity or life insurance policy for a new one of like kind without incurring any tax consequence for the exchange. The IRS allows holders of these types of contracts to make this type of exchange to replace outdated contracts with new contracts that have improved benefits, lower fees, and different investment options. In this video you will learn the ins and outs of the 1035 exchange and the client benefits of it.