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? 



a) Section 1040 exchange
b) Section 1035 exchange
c) Nonforfeiture Option
d) Spendthrift Opyion


Answer: a) Section 1035 exchange

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