How Term Lifextender bridges the gap

Term Lifextender™:

  • Is a unique, in-force split-dollar loan program
  • Makes it more affordable for people to keep their valuable life insurance
  • Creates new solutions for your clients
  • Generates new potential sales for you

Here’s how it works:

Upon acceptance into the Term Lifextender™ (TLE) program:

  • Your client converts their existing term policy to universal life and pays the minimum conversion fee (not the yearly premium) to the carrier
  • With the policy now in force, your client enters into a split-dollar loan agreement with the Term Lifextender™ Fund for a period of 5 or 10 years
  • The TLE Fund pre-pays the premium to the insurance carrier for the entire TLE period — the split dollar loan
  • Your client pays an annual fee — much less than otherwise possible — to the TLE Fund
    • How much less? See the illustration in Joe’s story

At the end of the loan period, your client can either

  • pay the Fund back the amount of the loan and maintain the policy for as long as he or she likes (and possibly sell it at some point)
  • simply walk away,* knowing that he/she held onto valuable coverage for much less than otherwise possible

*Clients should consult their tax advisors about tax consequences

Next: “Joe’s Story,” Term Lifextender™ in action