1035 Replacement quick tips to ensure correct submission from the start
9685 TRANSFER/EXCHANGE FORM CHECKLIST FOR LIFE BUSINESS
| Please ensure the appropriate company box is checked at the top of the form: National Life Insurance Company OR Life Insurance Company of the Southwest | |
| Section I | |
| Fill out the name and address of the financial institution that the 1035 exchange is coming from | |
| Section II | |
| Enter the Owner’s name and social security number. The Owner’s name on our policy must be consistent with the Owner’s name on the replaced policy in order to process a 1035 exchange | |
| Enter the Insured’s name if different than the owner. The Insured’s name on our policy must be consistent with the Insured’s name on the replaced policy in order to process a 1035 exchange | |
| Enter the Joint Owner’s name and social security number if applicable | |
| Section III | |
| Enter the transferring companies’ Policy # | |
| Enter the Approximate Amount of the 1035 exchange | |
| Check whether it is a Full or Partial exchange. If a partial exchange, please call to verify that the transferring company will do a partial exchange. (Note: Periodic payment does not apply to life 1035 exchanges) | |
| Check “A New Policy” or “An Existing Policy”. If existing, enter the policy number. Note that some companies will not do an exchange to an existing policy. If a policy was recently issued, please check “A New Policy”. | |
| Check “Life Policy” in the Proceeds to be transferred from section for a 1035 exchange. | |
| Loans to be carried forward; please note that we may only accept a loan up to 50% if the gross cash value. Please verify with the replaced company that they agree to carry over the loan (some companies do not) and if they do, ensure that the loan amount is within 50%. If neither Fixed or Variable is chosen, we will default to Variable. | |
| Please select all that apply for “From Existing Plan Type” and “To New Plan Type” section. Some life policies are qualified and we may only process a 1035 exchange if it is Non-Qualified. | |
| Section VII | |
| Check whether the proceeds will go to Life Insurance Company of the Southwest or National Life Insurance Company | |
| Check either “My Policy/Contract has been lost or destroyed” OR “My Policy/Contract is enclosed”. If you have indicated the policy is enclosed, please submit the policy. | |
| The owner and joint owner (if applicable) need to sign and date the form. The signature must be legible. Keep in mind that some companies will ask for a guaranteed signature stamp or notarized statement if the signature does not match their records. If the Owner is a Trust or a Company, please include the authorized signors title next to their signature (Trustee, President….) | |
| If the State of Execution is Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington or Wisconsin, the spouse will also need to sign the form as these are community property states. |
HELPFUL HINTS: Please complete all areas that are mentioned above to prevent a delay. If the form is incomplete, we will require a corrected form with all changes initialed by the client or a newly signed form.
If you are able to obtain a recent policy statement from the financial institute that we are doing the 1035 exchange with, you may verify the policy number, owner, insured and other pertinent information. The owner and insured must match our policy. If the owner or insured have had a name change, this should be updated as soon as possible.
If the plan does not qualify for a 1035 exchange, we may do a transfer but the client needs to understand that it may be a taxable event.