We've built deep expertise across the industries that matter most to California's privately held businesses — from construction sites to manufacturing floors, healthcare practices to non-profits. Every industry has its own risks. Every client gets a partner who understands theirs.
VIEW ALL INDUSTRIESEvery service we offer is designed to lower your costs, protect your people, and strengthen your business.
VIEW ALL SERVICESWe're here to help simplify and guide you through your journey.
A 1035 Exchange allows policyholders to replace an existing life insurance or annuity policy with a new one without triggering a taxable event. Named after Section 1035 of the Internal Revenue Code, this option provides a tax-efficient way to adjust your coverage or financial strategy as your needs evolve.
When you initiate a 1035 Exchange, the cash value of your existing policy is transferred directly to a new policy or annuity. This process ensures that no taxable gain is recognized during the transfer, preserving your policy’s accumulated value.
Common reasons for a 1035 Exchange include seeking lower premiums, higher death benefits, improved investment options, or converting a life insurance policy into an annuity to provide retirement income.
By utilizing a 1035 Exchange, you avoid paying taxes on gains accumulated in the old policy, allowing your money to continue growing tax-deferred.
Policies purchased years ago may no longer meet your needs. A 1035 Exchange enables you to upgrade to a policy with better benefits, more favorable terms, or modern features like long-term care riders.
If your financial priorities have shifted, a 1035 Exchange allows you to transition from life insurance to an annuity, providing a steady stream of retirement income.
Types of policies we can do a tax-free 1035 exchange for:
Life insurance to Life insurance
Life insurance to Annuity
Life insurance to Hybrid Long-Term Care Insurance
Annuity to Annuity
We thoroughly review your existing policy to determine whether a 1035 Exchange aligns with your financial goals and identify options that maximize your benefits.
Our team takes the time to understand your unique needs and offers personalized solutions, ensuring the new policy or annuity is the right fit for your circumstances.
With our guidance, the exchange process is straightforward and efficient. We handle the paperwork and coordinate with the insurance providers to ensure a smooth transfer of funds.
Existing Policy: $1,333,700 Survivorship Whole Life Insurance Policy 10Pay
Current Premium: $75,000/year – 3 Years Paid, 7 Years Left
Current Cash Value: $169,000
Reason for Exchange: Lower premium costs
We helped the client transition to a new universal life insurance policy by using the current policy cash value to front load the premium with a lower premium of $42,570/year for the remaining 7 years while increasing the death benefit to $1,400,000. This change saved the client $32,430 annually without triggering a taxable event. A combined total savings of $227,010 and an increase of benefit by $66,300. A net difference of $293,310.
Existing Policy: $271,000 Life Insurance Policy with Cash Value of $179,000
Current Premium: $2,820 annually for life.
Reason for Exchange: Reduce or eliminate premium.
The client used a 1035 Exchange with the existing policies $179,000 cash value into a new life insurance policy. By doing this we were able to get the client $307,436 in death benefit, a $36,436 increase, guaranteed for life while eliminating all future insurance premiums. The client will no longer have to pay a premium and will increase his coverage.
Reach out today and let's build a plan around your goals.