Variable life insurance can be exchanged for permanent insurance with comparable benefits within 24 months.

• A. True
• B. False
• C. Only after 12 months
• D. Not allowed

Answer: (A)

Variable life policies often include an exchange privilege that lets you swap the contract for a permanent policy with comparable benefits within a short window after issue, commonly 24 months. This provides flexibility if you later decide you want guaranteed premiums or a different death-benefit structure. The exchange is typically tax-free under IRC 1035, as long as you follow the proper rules and stay within the time frame, and no new underwriting is usually required. So, exchanging variable life for permanent insurance with comparable benefits within 24 months is allowed, making the statement true.