HomeIf you've invested your hard-earned money into an annuity, it's in your best interest to familiarize yourself with a 1035 exchange. A 1035 exchange allows you to exchange your current annuity for a new one to avoid having to surrender your annuity and pay extra fees.
But why would you want to exchange one annuity for another? The most popular reason is that by switching annuities, you can upgrade to a more favorable one. If you meet the correct guidelines under IRC Section 1035, you can even exchange an annuity without being taxed.
On top of upgrading to a better annuity, here are some other reasons why you would consider a 1035 exchange:
- Increased interest rates
- A sudden change in your financial strategy
- To reap other benefits and features
Before you experiment with a 1035 exchange, contact your life insurance agent to see if you qualify. Since there might be some hidden fees, compare any of these fees with all of the financial benefits you will gain from the 1035 exchange to see if it is worth it in the long run.
Inquire Today about a 1035 Exchange
Switching annuities can look relatively easy from an outsider's perspective, but it is a complicated process that takes a lot of patience. Thanks to a 1035 exchange, however, you no longer have to worry about tax liabilities and other hidden fees. If you are interested and have any further questions, don't hesitate to contact your life insurance agent to help you decide whether or not upgrading your annuity is in your best interest.
