Joe’s story: Term Lifextender™  in action

Meet Joe.1

  • 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

Joe can:

  • 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

 

Next: How to tell if your clients are candidates for TLE