1035 Exchange to SPIA
November 13, 2019
1035 Exchange to SPIA (Single Premium Immediate Annuity) and BOLI Optimization
1035 Exchange to SPIA: A relatively uncommon type of 1035 exchange has become the talk of the town in the BOLI market. Typically when we think of a 1035 exchange, it’s a transaction that involves exchanging the BOI policy of one carrier for another carrier, on the active lives, in order to improve performance of the BOLI. However, it can also be done from a BOLI policy into an annuity. Specifically, a single premium immediate annuity with a fixed number of payments. This strategy can be used for both active and inactive lives, and can be used for the same reasons as a BOLI to BOLI exchange.
