1035 Exchange Life Insurance Case Study

This document is a case study that outlines the scenario of an individual named Matt, who is exploring options for life insurance protection without market risk. At age 58, Matt currently holds a life insurance policy valued at $7.77 million, with a cash value of $2.1 million. He is considering a 1035 exchange to transfer his cash value into a new policy that aligns with his risk tolerance and includes a no-lapse guarantee. The case study details the process of applying for the PL Promise GUL policy, which offers a lifetime no-lapse guarantee to age 95 without additional annual premiums. It also discusses the considerations involved in replacing an existing policy, emphasizing the need for a careful comparison of costs and benefits. The document highlights the potential benefits of the new policy, including options for chronic illness protection, while addressing the importance of understanding the implications of such a transition.