View All Financial Terms Tax-sheltered exchange of value (cash) between one life insurance policy and another life insurance policy. The benefit of this is that it allows a person to avoid capital gains or losses from the initial policy if the latter policy is equal to or greater than the first in cost.1035 Exchange | Popular TermsStatutory LienExcess Insurance Consolidate Economy of Scale Group of 15 (G-15) Reconciliation Nominee Shareholding Futures Contract Fidelity Bond Derivative Contract Hedge Settlement Account Aggregation 1035 Exchange Repurchase Agreement Timing Option Additional Principle Payment Discretionary Cost Adjusted Basis Value Bank Run Amortizing Mortgage Graduated Payment Second Lien Debt Undistributed Profits Convertible Bond |