If you use an IRS approved 1035 exchange you may exchange your contract for a new annuity contract within your current company or you can exchange your annuity contract for a new contract in a new company. If done properly, this exchange will not incur a tax liability, your deferred earned interest will remain deferred in the new contract.
You can modernize your life insurance at retirement and avoid paying further premiums.
Section 1035 allows owners of annuities (and life insurance) the opportunity to exchange an older annuity contract for a newer contract that may offer features more in line with current needs. As an example, the older contract may be crediting a lower interest rate than a new annuity may offer.
As we age, the need for a life insurance policy can change. Numerous opportunities may exist for you to make changes to your current life insurance policy to establish a different type of benefit. • Exchange: Exchange your life insurance policy for an annuity to develop an income stream. The life insurance cash value will [...]