A 1035 exchange worked well for my client.
Cash value life insurance had a hidden benefit for Michael.
He needed more long-term care insurance. His mother had suffered in Memory Care for more than a decade. He was aware of the staggering cost. He had a sizable portfolio and didn’t want to see it evaporate if he needed care too.
Fast forward to today.
His whole life insurance policy had about $130,000 in cash value. IRS rules allow him to exchange his life insurance for a long-term care contract without paying any taxes on the gain on his life policy.
The end result produced $100,000 a year in long term care coverage for as long as he needs it. The hybrid policy still provides life insurance if he never needs the long-term care part.
And he never has to pay a premium!
When you’re ready to talk to an expert about how to secure $100,000 in Long-Term Care Coverage through a 1035 exchange, schedule a call: www.calendly.com/jimbetter. Find more resources in our blog.