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.

Why It Matters
As financial needs evolve, your current life insurance policy may no longer be the best fit. A 1035 exchange provides an opportunity to:

• Improve coverage for the financial well-being of your loved ones or business.
• Lower policy costs while maintaining or increasing benefits.
• Access modern policy features, such as enhanced death benefits or long-term care riders.
• Avoid taxable events while upgrading your policy features.

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