scott purchased a life insurance policy to ensure that his kids were taken care of in the event of his untimely death. since they are now grown, he feels he no longer needs the life insurance. he would like to exchange it for an annuity that can provide him additional income for his golden years. which of the following is correct? question 12 options: he can make the exchange, but it will be taxable to the extent of the cash value. he can make the exchange, but it will be taxable to the extent of the cash value less the additional money he puts into the annuity. he can make the exchange, which will not be taxable. he can make the exchange, which will not be taxable, but his basis will not reflect any of the investment into the life insurance policy.