Can a life insurance policy be exchanged for an annuity contract under section 1035?
Yes. Section 1035 permits the exchange of a life insurance policy for: (1) another life insurance policy; (2) an endowment contract; or (3) an annuity.5 Section 1035, however, allows only those exchanges that do not delay the receipt of benefits by the taxpayer. So the exchange of an annuity to a life insurance contract is not permitted.
Related Questions
- Is a variable life insurance policy or a variable annuity (VA) a suitable financial product for parents to use to save for a childs college education?
- Given the recent economic conditions, how safe is my Lincoln Financial life insurance or annuity contract?
- What is the difference between an annuity contract and a life insurance contract?
