top of page

Long Term Care & 1035 Exchange

1035 exchange is an IRS rule that allows policyholders to transfer money from an existing life insurance policy or annuity to a new insurance policy without paying any income tax. 


This type of exchange is often used to fund long-term care insurance, as it can provide a tax-free way to pay for long-term care insurance premiums. Types of long-term care insurance policies include traditional long-term care insurance, hybrid policies, and short-term policies.


FAQs for 1035 Exchange and Long Term Care Insurance


Q: What is a 1035 exchange?


A: A 1035 exchange is a tax-free transaction that allows you to move funds from a qualified life insurance policy into a new policy, often with the same insurance company. This is commonly done to take advantage of better policy features or to save money on premiums.



Q: How can I use a 1035 exchange for long term care insurance?


A: A 1035 exchange can be used to purchase a long term care insurance policy, or to move funds from a qualified life insurance policy into a long term care policy. This allows you to use the cash value of the life insurance policy to pay the premiums for the long term care policy.


Q: What are the advantages of using a 1035 exchange for long term care insurance?


A: Some of the advantages of using a 1035 exchange for long term care insurance include tax-free transactions, lower premiums, and the ability to take advantage of better policy features. Additionally, it can provide a more secure way of obtaining long term care insurance coverage, as the funds are held in a life insurance policy.


As independent insurance brokers, we offer State Long-Term Care Insurance policies to meet your long-term care needs. 


Download this guide today or contact us to learn more about the long-term care insurance plans we offer. You'll be glad you did. 

Banatty Insurance

Chantal Banatty

Banatty Insurance

NPN #

8937250

CONTACT US

941-541-2742

North Port, FL, USA

A Licensed Agent/Advisor May Contact You. Consult your legal, tax accountant, financial and insurance professional for more advice. Any voluntarily submitted or collected information is used solely for the purpose of insurance underwriting and price quotes and not sold or used for any other marketing or solicitation purpose. Not affiliated with CMS, Medicare or any other federal and state agency. Content on this site is not intended to provide legal, accounting or tax advice.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. By providing your contact information for quote requests for material downloads, you grant permission for licensed insurance agent, identified here, to call you regarding your Medicare options including Medicare Supplement, Medicare Advantage, and Prescription Drug Plans.

Florida

bottom of page