Replace, Sell or Surrender
1035 exchanges, replacement rules, life settlements, lapses and surrenders, with the cautions.
Replacing a Life Insurance Policy: The Rules and Questions to Ask
How state replacement rules based on the NAIC model work, what agents and insurers must give you, and the questions to answer before swapping policies.
Read · 6 min read →Replace, Sell or Surrender1035 Exchanges: How Tax-Free Policy Swaps Work and Their Limits
What Section 1035 allows, which swaps don't qualify, when cash or a loan makes part of an exchange taxable, and why tax-free doesn't mean a good deal.
Read · 6 min read →Replace, Sell or SurrenderLife Settlements: How Selling a Policy Works and What to Watch For
How selling a life insurance policy to a third party works, how offers are priced, the costs and state rules involved, and the scams regulators warn about.
Read · 6 min read →Replace, Sell or SurrenderSurrendering a Policy: Cash Value, Surrender Charges and Taxes
What you actually receive when you cash in a policy, how surrender charges and loans reduce it, how the IRS taxes the gain, and what to check first.
Read · 6 min read →Replace, Sell or SurrenderStopping Premiums: Lapse, Reduced Paid-Up or Extended Term
Grace periods, nonforfeiture options and reinstatement explained, so stopping premiums on a cash value policy is a deliberate choice rather than a lost value.
Read · 6 min read →Replace, Sell or SurrenderPolicy Loans: How Borrowing Against Cash Value Works and the Risks
How life insurance policy loans work, what they do to the death benefit, how they raise lapse risk, and when a loan can turn into a tax bill.
Read · 5 min read →