Planning for future care needs is a top concern as people age. One of the options to help alleviate this concern is to look at products with chronic illness (CI) or long-term care (LTC) coverage. Many products can provide CI or LTC coverage in addition to a death benefit. If you have an existing life insurance policy that no longer meets your needs, consider using a 1035 exchange to help repurpose your old policy into two new policies that will help secure both your death benefit and future care needs.

A 1035 exchange split can be an effective tool to customize your policies so you can receive more death benefit and LTC coverage than a single policy may provide.

Example: George, age 65, is married and in good health. He wants to protect his wealth and pass on a legacy to his family. He has $150,000 in cash value with his existing life insurance policy that he wants to use to maximize his LTC/CI coverage and have a death benefit to pass on to his family. He does not want to pay additional premiums but rather leverage the existing value of his old policy to meet his goals.
His financial professional discusses an option to use a 1035 exchange and split the funds into two policies to maximize his LTC/CI and death benefits.

If you’re looking for LTC/CI coverage in addition to a death benefit and have existing 1035 dollars to achieve that goal, splitting that amount to maximize your coverages is a great option.

Call the ACTA team to see how a split 1035 may work for you to maximize the death benefit and provide funds for future care needs.