Can You 1035 From An Annuity To Life Insurance?

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Hi there, Stan the Annuity Man, America's Annuity Agent, licensed in all 50 states and Puerto Rico. The question is, can you 1035 transfer an annuity to life insurance? I'm going to tell you how that works, or doesn't work, after this. All right, section 1035 of the IRS code,

0:24What Section 1035 of the IRS Code States

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if you're so bored, means that you can transfer annuity to annuity, life insurance to an annuity, but you cannot transfer annuity to life insurance. I know what you're saying, Stan. Life insurance companies issue annuities, why can't you do that? I

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don't know, ask the IRS. You can't. For instance, you can take life insurance cash value, transfer it to an annuity, but you can't take annuities and transfer it to life insurance. My opinion, I think that's based on the fact that with life insurance, the vast

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majority, you have to go through an underwriting process, and annuities are guaranteed issue. They'll issue it if you're smoking 12 packs of Lucky Strikes with no filters and drinking a bottle of Jack Daniel's every day. It doesn't matter. It's all about life expectancy for

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lifetime income. They don't care. So, the answer is no. Not to transfer the annuity to life insurance. You cannot do that under any circumstance. My broader question to

1:30Key Question To Ask

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you, if you're thinking about transferring a current annuity that you own, is what are you trying to solve for? You know, if it is life insurance, if you said, "Stan, we really want to buy life insurance." And in my opinion, life insurance is the

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best legacy product on the planet, and it's also the best return on investment that you'll never see because you're dead. And And by the way, death is a great strategy, except for one thing, you can only use it once. You know, my strategy for death, by the

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way, just I knew you were asking. Hey Stan, what's your strategy for death? Well, the hope is that I'm in front of the camera like this. I've instructed my professional dudes behind the camera that if I have a heart attack, do not help me. If I fall down and look like I'm dead,

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do not help me. Film. Film. Film. It's gold. He'll be marketing gold. Stan died talking about contractual guarantees. That's what Stan died for. Let's go backwards though. Let's try to

2:28Alternative Way To Move Annuity Payments To Life Insurance

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Let's try to figure out a way to take your current annuity and go to the life insurance, not with a transfer, not with a transfer, okay? Can't do that. What we can do, if you said, "Stan, we need life insurance." and you qualify for life insurance, and you go through

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that process, I can refer you to the top I'm the top guy in the world in annuities. I know the top guy literally in life insurance as well. He's like 40 straight years round table dude. He's that guy. Plus, he's 6'8. I'm 6'6, so between the two of us,

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that's a lot. But, let's just say you you chose the life insurance that you wanted to get. My opinion, level term. Buy the most death benefit for the least amount of money, level term. It's what I have for the for the lovely queen and the princesses.

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Um and let's just say you figured out what the premium would be on a monthly basis. Quarterly, annual, whatever. However you want to pay. You could take the annuity that you currently have. We could shop for the best immediate annuities on the planet. Okay? A+ or better.

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And by the way, they they You could I'll do it two ways. You could do it life only, so when you die, it quits paying, but when you die, the life insurance pays out. Capiche? So, you could create that immediate annuity and have the immediate annuity pay for your life insurance.

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Huh? Stan, where you coming from, player? Hey, been to the annuity rodeo many a time. I've done this many a time, okay?

4:07How To Use Joint Life Only Annuity For Life Insurance

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So, that's the first way to do it. But, if you want to get fancy, let me give you this one. >> [snorts] >> Did one like this the other day. Guy's buying life insurance, he's buying a big one. I said, "What's the What's the premium on it?" He told me

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it was a lot. But, let's just say for just argument's sake, it was $3,000 a month. All right? So, I said, "It's on you, right?" He goes, "Yep, it's on me." Um you're married? Yep, I'm married. All right, let's do this. Let's do joint life only. Okay, joint life only and that payment

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doesn't go to you and your wife, it goes to to the life insurance company. He goes, "Stan, what are you doing? Why Why would I do that?" Because when you die, life insurance pays out and the income continues uninterrupted and unchanged for your wife. Hello!

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That's leveraging, baby. That's contractual leveraging. They did that. They did a joint life only policy paying into the life insurance company. When he dies, wife gets a lump sum that was massive and the income continues for the rest of her life. So,

5:17Different Ways To Use Annuities Payments For Life Insurance

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can you transfer it to life insurance policy? No. Can we skin the cat? That's a really tough, you know, I've always wondered, you know, where'd that come from? People skinning cats, that's not good. Can we skin the cat another way? Yes, contractually we can. On another

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side note, a lot of people use immediate annuities to fund the life insurance policies so they don't have to think about it. It's an easy way to do it. And we can get real fancy and and and use what's called islets, which is life insurance trust working with estate

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planners. They love doing that stuff and I've done thousands of them with the estate planners. Not me, I'm not a lawyer. Don't want to be a lawyer. You know, I can't even see myself in law school day one. Like Johnny Eagers over here going, like shut up. Could shut up. Um

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but that's how it works. There's always a way, but you had the way cannot be hypothetical. The way has to be contractual. All right? You can't go about things in the annuity world looking at, well, it might it might do this or it or it could do this or it should do that. No, no,

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no. It has to will do this. You own an annuity for what it will do, not what it might do. Never cross the line into that. Never ever look at it and go, well, you know, this this guy said it's it's in the past it's performed like this. Bunch of garbage, crap, tired of it.

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Don't do it. You're smarter than that.

6:53Transferring Life Insurance To An Annuity

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Now, on the other side, life insurance cash value can be transferred to annuities. Like index universal life, whole life, whatever this products are out there that accumulate cash value and then the guy says, well, you can get tax-free income on that. No, Chester,

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that's a loan. That's not tax-free income, that's a loan. The fact that that's still being pushed out there and people are still buying that it's tax-free income, I I literally can't believe it. So, you can go from life insurance to annuity. We're not going to just cavalierly let

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you do that. You have to tell us why. You have to tell us what you're accomplish what you're trying to accomplish, what your goal is, and we'll go shop all carriers to solve for that contractual goal. Good question, though.

7:38Next Steps and Helpful Resources

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There's a lot of annuities that's been missold out there. You know, we we make lemonade with a lot of them. If you want to email me a statement for me to review and tell you how we can possibly make lemonade with it. Or if what you have is good, just email

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me. [email protected]. If you want to schedule a call, you can go to the site and schedule a call. You can go to the site and download the books and run quotes and do all that stuff. I've done a few videos, by the way. And um you know, thousands.

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Um we're based in uh Las Vegas, Nevada. We're open 12 hours a day, Monday through Friday. We're open 8 hours a day, Saturday, 68 hours a week. Because we're there for you. Everybody in my office is on is is um licensed in all 50 states and not on commission.

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So, their intentions are aligned with what I want them to be, which is helping you, the client. And that's important. Okay? We're here to change the industry. We are number one in the direct-to-consumer space, but we're we're trying to change the industry

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from the standpoint of messaging. You own annuities for their contractual guarantees. You do not buy the dream, cuz you're going to own the contractual realities. All right? Do me one last favor. Above my head, spinning clock, there's a video that I did on inflation.

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Okay? And how annuities really solve for it. Not some pie-in-the-sky Johnny Appleseed upfront bonus nonsense. Um contractually, pragmatically, the right way. That video will show you how to do it and how to plan for future inflation needs to fill that gap. All

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right? My name is Stan The Annuity Man. See you next time.