What Are The Advantages Of A 1035 Exchange For Your Life Insurance Policy?


If you are like many other life insurance policy holders, you may have been paying premiums with the same company on the same policy for many years. In doing so, you may have accumulated a great amount of cash leverage you can use towards another, more beneficial, policy. Making changes to your policy can be an important aspect of providing the most for loved ones in the event you die. Check out some of the reasons you might want to explore your options for a 1035 exchange.

Choose A New Policy With Lower Premiums

For people that have recently retired or have experienced a drastic cut in their income, changing life insurance policies to lower monthly premiums is a good idea. You can choose another policy with the same company or you can choose one with a new company. The only condition the Internal Revenue Service places on you when switching policies using their 1035 exchange is that the new policy has the same or greater face value than the one you have now. This condition can work for you so you will not end up taking a policy of lesser value for saving money on premiums, a huge benefit for your heirs and beneficiaries. Keep in mind that you do not receive any money in your pocket during a 1035 exchange. The exchange is only between prospective life insurance policies.

When You Have Worked To Get Healthier

When you took out your existing life insurance policy, you may have been a smoker and overweight. You may have quit smoking and lost weight, but you are still covered by the policy that says you smoke and are overweight. If you have worked to become healthier, using a 1035 exchange to change policies is a good idea. In this case, you will need to go back through the underwriting process for listing that facts you do not smoke and you are not overweight anymore, but you can experience lower premiums and greater benefits for your beneficiaries by doing so. You can make a policy exchange in this way without being charged tax. Discuss with your life insurance agent about how you can make changes after getting healthier using a 1035 exchange.

Considering Today's Volatile Economy

Because of the poor economy today, many companies are struggling financially. If you have learned your present insurance company has become financially unstable, you can use a 1035 exchange to get a new policy at a company that is financially stronger. When you stop to consider your loved ones in the event of your death, you want to make sure the company delivering their monetary benefits is financially able to do so.

Maintaining an up-to-date life insurance policy is extremely important and can be done using a 1035 exchange if necessary.


23 September 2016

Making Sure You Have Enough Life Insurance

You love your family, so why wouldn't you do everything in your power to make sure they are okay after you die? Although it might seem like a morbid thought, the fact of the matter is that life insurance is absolutely crucial. I want you to understand how to shop for life insurance and choose the right terms, which is why you should read this website. Check out these interesting articles about how to plan your estate and protect your investments, so that your family isn't left with financial struggles in addition to the recent loss of a family member.