IRC Section 1035 Exchanges Require Special Attention
BSMG
Advanced Sales,
1035 Exchanges
No Comments
1 Aug 2017
Often a policy review of your client’s existing life insurance and annuity contracts will conclude that a more cost efficient contract with better guarantees and rates of return makes sense. This will cause a producer to seek a potential transfer of the existing cash values to a new contract via a tax free Section 1035 exchange.
Read MoreLinked Benefit Products Offer Great Section 1035 Exchange Options
BSMG
Long Term Care,
Advanced Sales,
Linked Benefits,
1035 Exchanges
No Comments
6 Jul 2017
IRC Section 1035 provides that exchanges into life insurance or annuity contracts with Long Term Care (LTC) riders will be income tax free because these riders are treated as LTC contracts under IRC Section 7702B(e). These Section 1035 tax free exchange provisions positively impact so-called linked benefit life insurance-LTC products and linked benefit annuity-LTC products.
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