When planning to exchange a variable annuity for a lite policy under section $1035,$ the most important thing to keep in mind is

A$)$ the proposed exchange is one that would be most appropriate to take advantage of this IRC section

B$)$ the potential tax consequences later for the new life policy

C$)$ the death benefit in the life contract will likely be greater than what is being provided in the annuity contract

D$)$ the deferred tax advantage of the annuity will be lost, and there will be immediate tax consequencesWhen planning to exchange a variable annuity for a lite policy under section $1035,$ the most important thing to keep in mind is

A$)$ the proposed exchange is one that would be most appropriate to take advantage of this IRC section

B$)$ the potential tax consequences later for the new life policy

C$)$ the death benefit in the life contract will likely be greater than what is being provided in the annuity contract

D$)$ the deferred tax advantage of the annuity will be lost, and there will be immediate tax consequencesWhen planning to exchange a variable annuity for a lite policy under section $1035,$ the most important thing to keep in mind is

A$)$ the proposed exchange is one that would be most appropriate to take advantage of this IRC section

B$)$ the potential tax consequences later for the new life policy

C$)$ the death benefit in the life contract will likely be greater than what is being provided in the annuity contract

D$)$ the deferred tax advantage of the annuity will be lost, and there will be immediate tax consequences