Joe’s story: Term Lifextender™ in action
- 69 year-old male Preferred Non-Smoker
- $1,000,000 face
- Health has declined since original purchase — now Table 7
- Term conversion option coming to an end
- Convert to universal life at original class — Premium jumps to $32,100 — too expensive
- Buy new term at Table 7 — Premium jumps to $34,800 — too expensive
- Sell his policy in the secondary market — not sick enough — no buyers
- Result—policy lapses
Joe decides that Term Lifextender™ is a good choice for him.
- Joe converts his policy to universal life and pays only the minimum conversion cost
- He chooses either:
Option 1, which gives him the right to repay the split-dollar loan and keep his policy
• 10 year term $16,700 yearly fee
• 5 year term $9,200 yearly fee or
Option 2, where his coverage ends at the end of the term².
• 10 year term $14,600 yearly fee
• 5 year term $6,800 yearly fee
- He enters into a split-dollar agreement with the Term Lifextender™ Fund, which loans Joe the cost of the premiums for the full term of the loan
1 Illustrated values based on one actual case. Each case will vary. Contact TLE for an accurate proposal for your client.
2 Clients should consult their tax advisors about tax consequences