Definition of "Periodic Transfer"

This is a transfer from one company to another pursuant to IRS Ruling PL102-318. It allows for the transfer of the money from one company to another over a period of time of substantially equal payments. Most are set up as monthly, however they can be quarterly or annually. Effectively, a policyholder annuitizes their policy, but has the proceeds sent as a transfer to another company to purchase an annuity there rather than receiving the payments as income.

This is a transfer from one company to another pursuant to IRS Ruling PL102-318. It allows for the transfer of the money from one company to another over a period of time of substantially equal payments. Most are set up as monthly, however they can be quarterly or annually. Effectively, a policyholder annuitizes their policy, but has the proceeds sent as a transfer to another company to purchase an annuity there rather than receiving the payments as income.