How does a split-dollar loan work?

Split dollar financing has been used for decades in the insurance industry to help people better afford their valuable coverage. In short, it means the money we provide, we get back at the end.

  • The Term Lifextender™ Fund pre-pays your client’s premium to the insurance carrier for the loan period; that’s the split dollar loan
  • Your client pays a low annual fee to the TLE Fund
  • At the end of the loan period:
    • your client with Option 1, repays the TLE Fund the split dollar loan and keeps the policy as long as he or she likes
    • your client with Option 2, has their coverage end
  • In case of death during the loan period, your client’s beneficiaries collect the full death benefit, minus the amount of the split dollar loan


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