You can transfer permanent life insurance and annuity plans directly from one company to another through a 1035 Exchange.
A 1035 Exchange is a tax-free rollover of cash-value funds directly from one life insurance company plan to another, which allows you to take money from an old plan and transfer it directly into a new plan. Since the funds do not pass through your hands, but are directly between the two companies, the Internal Revenue Service does not tax the transfer. The funds must be transferred into a new plan and the owner and the insured must be the same on both the old and new plans.
A life insurance contract may be exchanged for another life insurance contract or for an annuity contract. An annuity contract maybe be exchanged for another annuity contract. A 1035 Exchange is an excellent way to move money from an old under performing life insurance or annuity plan into a new Flagship Whole Life plan or annuity with Navy Mutual.
Why should I transfer my coverage to Navy Mutual?
Our Flagship whole life insurance plan offers you the following:
- Lifetime Protection
- Potential dividends, tax-free until they exceed the amount of premiums paid.
- Tax-deferred cash-value.
- Chronic/terminal illness option.
Our Annuities offer you the following:
- Tax-deferred Interest Accumulation
- Lock-in Periods of Two, Five, Seven, or 10 Years
- One Percent Premium Bonus for Seven to 10-year Lock-in Periods
- Future Contributions Can Be Made at Any Time
- No Loads or Commissions Ensures Highest Possible Payments
- Guaranteed Income, Regardless of How the Market Changes
- Retention of Withdrawal Rights, while Accumulating Wealth
How do I get started?
1. Apply Online (for whole life exchanges only) - Check the 1035 Exchange button on the Benefit page.
Complete the medical exam (we will send Porta Medic to your home/office).
2. Download, complete, and sign the 1035 Exchange Form
3. Mail the 1035 Exchange Form to us at the following address:
Navy Mutual Aid Association
29 Carpenter Road
Arlington, VA 22212
We will do the rest! We will work directly with your insurance company and notify you when the exchange is complete.
To learn more about 1035 exchanges and for help deciding if they are a good option for you, give us a call at 800-628-6011 or click here to schedule a phone call with one of our life insurance experts.