Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?

Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?





  • Section 1040 exchange
  • Section 1035 exchange
  • Nonforfeiture Option
  • Spendthrift Option




Answer: Section 1035 exchange

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