1035 Exchange Through Canvas
DISCLAIMER: This will be a long review/tale for those who are thinking about transferring an annuity to Canvas and would like to read about an actual experience. The TL;DR version is that the transfer required several rounds of follow-up paperwork to satisfy the surrendering carrier, extending the process beyond Canvas's promotional rate-lock window, but the Director of Canvas intervened to make sure that we satisfied the surrendering insurer and also guaranteed that the promotional interest rate in effect when I applied would be honored. While Canvas's interest rates are obviously industry-leading, their customer service is even better. By the time I applied for a Canvas annuity in May, to be funded through a 1035 exchange of an old annuity, I'd already exchanged many annuities through a remote agent and also through online competitor Gainbridge. I was familiar with the paperwork that was involved (in particular applying as POA for the annuity owner) as well as the transfer times. The first thing that struck me about Canvas's app was that the published rate-lock window of 30 days was too short for a transfer. This made me anxious about Canvas's process. It turns out that the rate-lock window for transfers is actually 45 days, which is stated in a Canvas email. The second thing that struck me about the application process was that at no time did Canvas ask me for a copy of the Power of Attorney that purportedly authorized me to act on behalf of the owner. Canvas ultimately did request the POA before they would speak with me when I called to follow up a few weeks later. The surrendering carrier made this transfer more difficult than it had with previous transfers, and its new requirements for POA applicants necessitated some do-overs in Canvas's paperwork. When only four days remained in the transfer window, I asked Canvas about extending the promotional rate. As testament to the company's commitment to customer service, the Director of Canvas stepped in and shepherded my transfer to its happy conclusion. The 1035 exchange process can be daunting and is not necessarily optimized for a digital-first platform. However, there are real people at Canvas behind the digital platform, and in my experience they show up unbidden to smooth out the process.