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!
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* As of 2023 McFie Family Insurancedoes charge for policy reviews