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Can one survivor policy be exchanged for two single life policies?

April 26, 2017exchanged life policies policy Survivor

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Can one survivor policy be exchanged for two single life policies?

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No. Application of IRS rulings suggests that, because the insured under each policy would be different, the requirements are not satisfied. Accordingly, policy splits made pursuant to a Policy Split Option Rider are taxable to the extent of gain in the policies.