Should You Do a 1035 Exchange?

Similar to a 1031 exchange in Real Estate 🏘, a 1035 exchange lets you avoid tax and transfer your “cost basis” when exchanging life insurance policies.

Do you have a policy that isn’t performing the way it ought to be? Is your insurance agent wanting you to exchange into a new life insurance policy? Should you do this?

Here’s an overview with Pros and Cons and what you want to know to decide whether a 1035 is the best idea for you.

Also some clarification around when it makes sense to take a policy loan - triggered by a recent conversation with Dr. Jim.

Thank you Dr. Jim!

Resources:

Atlanta Workshop - May 4th 2019

How to Read a Life Insurance Illustration - Video