How GXO Logistics Employees Can Use an Older Life Insurance Policy to Support Long-Term Care Needs

Healthcare Provider Update: Healthcare Provider for GXO Logistics GXO Logistics employees utilize the services provided through various health insurance companies, particularly those participating in the Affordable Care Act (ACA) marketplace. These providers vary by location and may include major insurers like UnitedHealthcare, Anthem, and others, depending on the state in which the employees reside. Anticipated Healthcare Cost Increases in 2026 As employees of GXO Logistics prepare for 2026, they should brace for considerable healthcare cost increases driven primarily by surging insurance premiums in the ACA marketplace. Reports indicate that many states will experience steep hikes, with some insurers proposing increases exceeding 60%. This trend is largely attributed to rising medical costs, projected losses of enhanced federal premium subsidies, and the pressure on employers to shift more healthcare costs onto workers. As a result, GXO Logistics employees could face significantly higher out-of-pocket expenses, making it crucial to review benefit selections and options available early in the upcoming enrollment period. Click here to learn more

'For many GXO Logistics employees, reviewing whether an older life insurance policy still aligns with long-term care needs can be a meaningful step in maintaining a well-structured retirement plan, and thoughtful evaluation is essential.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'GXO Logistics employees can benefit from periodically reassessing older life insurance policies to determine whether a 1035 exchange or updated long-term care strategy may better support their evolving retirement goals.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. How a 1035 exchange works and when it may be appropriate.

2. Ways long-term care planning can interact with existing life insurance policies.

3. Key considerations before replacing or exchanging an older policy.

For many people, older life insurance policies—sometimes purchased 10, 15, or even 25 years ago—may no longer align with their current needs. As financial priorities evolve, regular reviews of insurance coverage become important to confirm that everything is still functioning as intended. This becomes even more relevant given the rising cost of long-term care. ¹  For GXO Logistics employees relying on older insurance policies to help cover the costs of long-term care, this matters more than ever.

Notably, if an existing life insurance policy no longer meets your goals, a 1035 exchange could help support future long-term care costs. Regulated under Section 1035 of the Internal Revenue Code, a 1035 exchange permits the tax-free transfer of one life insurance policy to another “like-kind” policy. When certain conditions are met—such as keeping the same owner and generally the same insured on both contracts—this rule allows GXO Logistics employees to shift from an existing life insurance contract to a comparable policy without incurring taxes. ²

Through this exchange, an older policy may be transitioned into a tax-qualified long-term care insurance policy. One option some people consider is a hybrid long-term care policy, which blends life insurance with a long-term care rider. Benefits from these policies are generally paid tax-free up to IRS limits, and the death benefit can be accelerated or accessed to help cover qualified long-term care expenses ³ —an arrangement some GXO Logistics employees may find helpful as they prepare for the years ahead.

There is no universal approach when evaluating a 1035 exchange. Before making changes, it’s important to understand how surrender fees, taxes, or performance differences may influence outcomes. Age and health can also determine whether new coverage is available or advisable. These factors contribute to whether keeping your current policy, exchanging it, surrendering it, or exploring new options may be appropriate.

A hybrid long-term care policy may offer benefits over an older life insurance policy in many situations. Examples include circumstances where loved ones no longer need the death benefit, the existing policy is falling short of expectations, or the gap between the cash value and death benefit has narrowed significantly. Reviewing illustrations that show a policy’s future performance can help you evaluate whether your coverage still supports your long-term goals.

Long-term care planning is an important part of preparing for the future, and maintaining thoughtful family coverage at each stage of life matters. A financial adviser can help you review your current insurance and discuss what type of future coverage may fit your needs. A tax professional can also offer guidance on tax considerations associated with a 1035 exchange.

The Retirement Group can assist you in reviewing your retirement planning, including decisions about life insurance and long-term care, and how these pieces fit into your broader financial approach. For assistance, call us at  (800) 900-5867 .

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Sources:

1. CareScout and Genworth. ' Calculate the cost of long-term care near you .' 2024.

2. Investopedia. “ Understanding 1035 Exchanges: Tax-Free Insurance and Annuity Transfers ,' by Julia Kagan. 8 Aug. 2025. Accessed 7 Dec. 2025.

3. Fidelity Investments. “ An Old Life Insurance Policy Could Help You Cover the Cost of Long-Term Care ,” by David Peterson. 30 Nov. 2025. Accessed 7 Dec. 2025.

Other Resources:

1. The Partners Group. “ Long-Term Care Insurance .” The Partners Group, 10 Nov. 2022. Accessed 7 Dec. 2025.

2. Financial Industry Regulatory Authority (FINRA). “ Should You Exchange Your Life Insurance Policy? ” FINRA.org, 23 Jan. 2023. Accessed 7 Dec. 2025.