Is the exchange of one insurance policy for another one taxable ?
The exchange of one life insurance policy for another one is considered a tax free exchange. Also an exchange of a annuity contract for another anuity contract with identical recipients is a tax-free exchange. A endowment policy for another endowment policy that provides for regular payments beginning no later than the date payments would have started under the old policy is considered a tax-free exchange.
Need Professional Help?
If you need help with "Insurance" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.