1035 Exchanges

Download the Checklist for Processing 1035 Exchanges.

Although each carrier’s 1035 procedures differ, here are some guidelines when your case involves a 1035 Exchange.

Acceptable 1035 Exchanges

• Life Insurance Policy to Life Insurance Policy (must be single life to single life or joint life to joint life)
• Life Insurance Policy to Annuity Policy (must be single life to single life)
  (Note: The insured and owners must be the same on the policy being exchanged to the new policy.)

NO 1035 EXCHANGES FROM AN ANNUITY TO A LIFE INSURANCE POLICY.

Normal Procedure for 1035 Exchange

• Refer to each carrier for the required forms, but at the minimum a 1035 Exchange Form, and an Absolute Assignment Form must be completed.
• The 1035 Exchange will be initiated as follows:
  
  Approved as applied for:
  1035 will be initiated at time of approval as long as signed illustration is at the carrier.
  
  Approved other than applied for:
  1035 will be initiated upon acceptance by insured and a new signed illustration is provided to carrier.

Important Notes to Understand

Client
It is important that the client fully understand the product they are purchasing when exchanging existing coverage.

Agent
Remember, this is a policy “replacement” and the carrier being replaced is in no hurry to get the paperwork processed. Your patience and cooperation during this process is greatly appreciated.