1035 Exchange

1035 exchanges are one of the easiest and most common ways you can access PPLI or PPVA using an insurance policy or annuity you already own.

IRC Section 1035 allows the tax-free exchange of a life insurance policy for another life insurance policy. Your previously funded life insurance policy can be exchanged tax-free, for a Private Placement Life Insurance (PPLI) policy. 

1035 exchanges also apply to annuities. You can exchange an annuity you currently own for a Private Placement Variable Annuity (PPVA).

Section 1035 states that these exchanges can occur without any tax gain or loss being recognized to the owner. Furthermore in the case of an annuity, the cost basis of the original annuity will be maintain in a 1035 exchange to a new annuity.

Contact us  to learn about how you can use a 1035 exchange to access PPLI or PPVA today