If Contract Owner is the Same Before and After the Exchange
- Life insurance can be exchanged for life insurance
- Life insurance can be exchanged for an annuity. This includes exchanges to either a deferred annuity or a single premium immediate annuity (SPIA)
- A deferred annuity can be exchanged for another annuity.This includes exchanges to either another deferred annuity or a SPIA
- An annuity CANNOT be exchanged for life insurance.
Types of Contracts that Can Be Exchanged
- Single life to single life
- Single life to single annuitant
- Survivorship life to survivorship life
- Survivorship life (one insured deceased) to single life
- Single annuitant to single annuitant
- Single annuitant to joint annuitant not related to the same insured(s)
- Single life to survivorship life not related to the same insured(s)
In our next blogpost, we will discuss some 1035 exchange complications.