Process5 min read

The 1035 Exchange Process, Step by Step

From suitability analysis to carrier selection to policy delivery — a complete walkthrough of what happens during a 1035 exchange and what you need to do at each stage.

Published by 1035Advisor · February 15, 2026

A 1035 exchange typically takes 4–8 weeks from start to finish. The process involves five distinct stages, each with specific requirements and timelines. Here is exactly what happens and what you need to do at each step.

The Five Stages of a 1035 Exchange

1

Suitability Analysis

1–2 days

Upload your in-force illustration to 1035Advisor. Our AI parsing engine extracts all relevant policy data — cash value, premiums, IRR, death benefit, credited rates — and generates a suitability analysis. You'll receive a Policy Health Score, a peer benchmark comparison, and a clear recommendation within minutes.

You do:

Upload your in-force illustration PDF

We do:

Run the AI analysis, calculate IRR and health score, generate recommendation

2

Carrier Selection & Illustration

2–3 days

If the analysis recommends a 1035 exchange, we run formal illustrations from multiple top-rated carriers using your specific cash value amount and age. You'll see exactly what death benefit each carrier can guarantee, to what age, and at what cost.

You do:

Review carrier illustrations and select preferred option

We do:

Request illustrations from 4–6 carriers, present comparison, advise on selection

3

Application & Underwriting

1–2 weeks

Once you select a carrier, we submit the application for the new GUL policy. Most GUL applications for exchange cases involve simplified underwriting — a health questionnaire rather than a full medical exam. The carrier reviews the application and issues a formal approval.

You do:

Complete health questionnaire; sign application

We do:

Submit application, manage underwriting process, communicate with carrier

4

1035 Transfer Request

1–2 weeks

Once the new policy is approved, we file the 1035 exchange paperwork with your existing carrier requesting a direct transfer of the cash value. The surrendering carrier processes the request and sends the funds directly to the receiving carrier — you never touch the money.

You do:

Sign 1035 exchange transfer authorization form

We do:

File transfer paperwork, coordinate between carriers, confirm receipt of funds

5

Policy Delivery & Confirmation

3–5 days

Once the receiving carrier confirms receipt of the transferred funds, the new GUL policy is placed in force. You receive the policy documents and a confirmation that the death benefit is guaranteed. The old policy is simultaneously surrendered.

You do:

Review and accept new policy documents

We do:

Confirm policy is in force, provide summary of coverage, archive all documentation

What You Need to Get Started

The only thing you need to begin is your current policy's in-force illustration — a document your carrier can provide on request, typically within 1–2 business days. Upload it to 1035Advisor and we handle everything from there.

Ready to See If This Applies to Your Policy?

Upload your in-force illustration and get a free suitability analysis in minutes. No cost. No commitment.

Call us directly

1-800-103-5000

Have questions about your specific policy?

Our licensed 1035 exchange advisors can review your situation and tell you exactly whether an exchange makes sense — at no cost.