When should you use a 1035 exchange with life insurance?

[@musicmaker5720]

In what year, generically, is the best year in the life of an insurance policy to do the 1035 Exchange?

[@TheMoneyAdvantage]

Thanks for watching! Unfortunately there is not a one size fits all answer to that question. Each situation is different and needs to be evaluated based on all the unique information. If you would like to discuss with our team you can book a call here: themoneyadvantage.com/calendar

[@karenwelch7980]

National Life said they wouldn’t give me an in-force illustration on my IUL until 1 year mark which is 12/24. I think I was sold a terrible product and don’t know what to do.

[@TheMoneyAdvantage]

Thank you for watching! If you would like a policy review, email us at [e-mail].

[@lovebbmm]

Can I do 1035 exchange from a guaranteed VUL to a hybrid(or called asset-based) LTC? Across different insurance providers.

[@TheMoneyAdvantage]

Yes that is possible. Thank you for watching!

[@lindasu4717]

Should I keep my UL and buy a new whole life? Or do 1035 rollover from my 10 year-old UL to a mutual whole life? I am 60 now, my UL is getting expensive.

[@TheMoneyAdvantage]

Great question. We cannot give advice without knowing your full financial picture. You can book a conversation with our advisory team here: themoneyadvantage.com/calendar

[@audreyl704]

if i don't do a 1035 exchange to a new policy can i do it later? after I'm in a new policy?

[@TheMoneyAdvantage]

Thank you for asking! A 1035 exchange is when you exchange an existing policy to a new policy.

[@audreyl704]

@@TheMoneyAdvantage thank you so only time is when you get a new life insurance? not when i get a new one ..later 2 yrs if i want to 1035 over

[@TheMoneyAdvantage]

@@audreyl704 You cannot 1035 an existing policy into another existing policy.

[@audreyl704]

@@TheMoneyAdvantage ok

[@Seccheus]

250.00 is a very low premium if the policy was not designed correctly you will have to increase the premium long term.

[@TheMoneyAdvantage]

Not if its Whole Life.

[@Seccheus]

@@TheMoneyAdvantage with WL the same design applies or you will get very little CV growth.

[@TheMoneyAdvantage]

No, WL has guaranteed premiums. Most people would not be able to meet the minimum requirements for a WL policy with a $250 premium. Most of our clients put at least $10-20K a year in premium, and many pay much more than that. I am not sure where the $250 came from other than a hypothetical example. kzbin.info/www/bejne/nZnZdohqqb2trZo kzbin.info/www/bejne/eWScqJxqhJhraZo

[@Seccheus]

@@TheMoneyAdvantage 250.00 was the example the guy used.

[@Seccheus]

@@TheMoneyAdvantage so we are saying the same thing. 250.00 is not a good premium amount. You need to pay more. So there is no point in using that amount as a premium example for WL or IUL.

[@Seccheus]

The COI can be reduced.

[@TheMoneyAdvantage]

The COI is set by the insurance company and is the same for everyone at that age. You can reduce the death benefit.

[@Seccheus]

@@TheMoneyAdvantage yes so by reducing the DB the COI is reduced.

[@TheMoneyAdvantage]

Indirectly, its a consequence of reducing the benefits to the policyholder.

[@Seccheus]

@@TheMoneyAdvantage in IUL works out better to reduce the DB/COI when you want to take income.

[@TheMoneyAdvantage]

They are entirely different products. Whole Life endows, whereas IUL does not, and because of this, you have to concern yourself with COI in later years in IUL, where you do not with Whole Life.