A Breakthrough, Patented Life Insurance Solution
Over 11 million individual term policies are active today, totaling more than $3 trillion in face value. Less than 2% of these policies are converted to permanent coverage.
Millions of people are looking for another solution.
Term LifeXtender offers insureds over 60 the ability to keep their valuable life insurance at an affordable price.
The program allows existing term policyholders who are less healthy today than when they bought their term policy to extend their coverage for 5 or 10 years with the option to continue their coverage for life.
TLE allows policyholders to lock in the original underwriting class regardless of the insured’s current health status.
What can a policyholder do if their term life policy's conversion option is expiring?
Option 1: Policyholders can convert their policies to a universal life policy. This option is costly — often 500-700% more than their previous premium.
Option 2: Policyholders can convert their policies to Term LifeXtender. This extends their coverage for 5 or 10 years while saving them up to 75% less than converting to UL.
What if the policyholder does nothing?
If a policyholder waits until it’s too late to convert, the only option left is to renew their term life policy annually. The premium increases exponentially year after year. Most people can only afford to renew term life for a couple of years.
Who Qualifies For Term LifeXtender?
Term LifeXtender isn’t for everyone. Qualified candidates include current term life policyholders who…
- Have an active term life insurance policy that can be converted to a Universal Life policy
- Have a minimum death benefit of $250,000
- Have an insurance carrier that is rated A- or better by A.M. Best or equivalent
- Have experienced a decline in health since their term policy was issued
- Want or need continued coverage beyond the expiration of their current term policy
How Term LifeXtender Works
Change in health + Conversion right = Affordable insurance
Term LifeXtender’s patented proprietary pricing engine develops a cost specific to each individual insured. Here’s how TLE works…
- The existing term policy is converted to permanent insurance.
- A “split-dollar loan” is made equal to the premium due for 5 or 10 years of “term extension.” A split-dollar loan is an arrangement to split the policy cost, death benefit and cash value between two or more parties, in this case the policyholder and TLE.
- Proceeds of the split-dollar loan are paid directly to the issuing carrier in a lump sum to cover the premium during “term extension.”
- The policyholder pays an annual “term extension fee” to the fund, saving 25-75% compared to the cost of converting without Term LifeXtender.
- If policyholder dies during the “term extension period,” the loan (10%-15%) is repaid from the death benefit. The insured’s family will keep the balance (85% - 90%).
Who Owns The Policy? It’s Up To The Policyholder.
At TLE, policyholders can purchase options to keep full ownership of their policy. Here’s how it works…
Policyholders who purchase the option get the right of first refusal to assume all rights and responsibilities of the policy at the end of TLE’s "extension period."
Policyholders who do not purchase the option grant the funder the right of first refusal to assume all rights and responsibilities of the policy at the end of the "extension period."
Next Steps
If you’re a policyholder, please contact your agent. If you don’t have one, contact us, and we will help you find one.
If you’re an agent, here’s how to learn more about Term LifeXtender.
1. Schedule A Call
We’ll explain more about how TLE works and how it can help your clients.
2. Assess Your Client
We’ll provide you with the questionnaire you need to qualify potential Term LifeXtender candidates.
3. Convert Their Policy
Each new Term LifeXtender policy generates sizable commissions for agents and financial advisors.
