Do you have an old cash value life insurance policy?
You can exchange your old policy into a NEW Investment Grade Life Insurance policy, even if you have outstanding loans on your old policy. Using a little known section of the Internal Revenue Code -- Section 1035 -- you can exchange your old policy for a new policy, Tax Free!
There are many possible reasons why a Tax Free Exchange may be a great idea for you to consider:
- If your old policy pays no dividends -- the majority of Whole Life policies sold do not pay dividends.
- If your old policy pays dividends, but the dividends have been reduced -- New Investment Grade Life Insurance policies may offer you better performance.
- If your old policy pays no excess interest -- many old Universal Life policies are paying only the guaranteed minimum interest rate, while new Index Universal Life policies have been averaging 7% or more, and even hitting their annual caps of 13% to 14% or more.
- If your old policy has outstanding loans -- old policies may reduce their dividends when a policy loan is outstanding, reducing your policy's performance. Newer policies have optional variable loans that enable your cash values to continue to earn current interest or Index Linked interest, even though you have a policy loan.
- If your old policy's only living benefit is the cash value -- Newer Life Insurance policies have other living benefits, such as cash benefits for Critical Illness, Chronic Illness, and Long Term Care.
- Older policies use out-of-date Mortality Tables with higher costs of insurance -- Newer policies use the current mortality table that reflects our longer lifespans, and have lower internal costs of insurance, and often lower administrative expenses.
- If your old policy does not have Principal Protection that prevents losses during bear markets -- Newer policies offer Principal Protection while still enabling your policy's performance to be linked to the upward movements of a market index.
The purchase of Life Insurance is a serious decision, with significant financial implications for you, your business, and your heirs. That is why it is always a good idea to use a professional insurance agent when purchasing life insurance. The best choice is an insurance agent that has earned the professional designation Chartered Life Underwriter.
For a FREE initial consultation with a professional life insurance agent that specializes in Life Insurance Retirement Plans under Section 7702, call today: (800) 680-5596