A 1035 exchange allows you to replace an existing life insurance policy while maintaining its tax-deferral benefits. Questions to consider include: When might a 1035 exchange be beneficial? What costs and risks should you consider? How do you determine if it’s the right move? Check out our latest Tenzing Talks video to learn more!
In many cases, a 1035 exchange can help policyholders see better policy outcomes—but careful analysis is required. Factors such as surrender charges, underwriting, and tax considerations all play a role in determining suitability.
Check out our latest video where we break down the key conditions to evaluate before recommending a 1035 exchange.
A 1035 exchange allows you to replace an existing life insurance policy with a new one. This provision, under Section 1035 of the Internal Revenue Code, allows policyholders to transition into policies that better meet their financial goals while maintaining the tax-deferred status of their accumulated cash value.
A 1035 exchange is a strategic financial planning tool that allows policyholders to replace an existing life insurance policy with a new one while maintaining tax-deferred status. This provision under Section 1035 of the Internal Revenue Code offers significant opportunities for policyholders to improve their coverage, reduce costs, and enhance financial planning strategies. However, executing a 1035 exchange requires careful consideration to ensure that the transaction is in the client’s best interest and adheres to regulatory standards.
A 1035 exchange is a powerful planning tool when considering updating your life insurance policy. Our easy-to-follow Tenzing Maps infographic highlights key factors that may help determine if it’s a good fit for your financial situation.
A 1035 exchange can offer benefits such as improved policy performance and cost efficiency, but not every policyholder is a candidate. What factors should advisors evaluate?
Our latest Tenzing Maps quick-reference infographic summarizes the key considerations that determine whether a 1035 exchange is appropriate.
Your life insurance policy may have served you well at the time it was purchased, but policies—and your needs—change over time. At Tenzing Insurance Strategies, we specialize in reviewing existing life insurance policies to determine if improvements are available. Whether your goal is to reduce costs, enhance policy features, or address specific concerns, a policy replacement may be the right path.
This whitepaper explores why replacements are possible, highlights potential improvements, and shares real-life examples of how other clients have improved their policies.