IUL and 1035 Rollover

capnjim01

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I have a prospect who has an older UL with another company that he has taken out loans against and I'm not sure yet if he has paid them all back. If I write him a new IUL can I rollover any cash he still has in the old one and what happens to the old loans.
 
I have a prospect who has an older UL with another company that he has taken out loans against and I'm not sure yet if he has paid them all back. If I write him a new IUL can I rollover any cash he still has in the old one and what happens to the old loans.

Some carriers will carryover the loan and some won't. Check on the carrier you intend to use and see if they will accept the 1035 with loans.
 
I have a prospect who has an older UL with another company that he has taken out loans against and I'm not sure yet if he has paid them all back. If I write him a new IUL can I rollover any cash he still has in the old one and what happens to the old loans.
the loan becomes taxable to the extent of any taxable portion of Cash value.
 
You should discuss the options with the prospect. Paying the tax on the loan vs. paying the loan back my be more favorable for the client.
 
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