How Term Lifextender™ bridges the gap

If your term life insurance policy’s conversion option is expiring soon, and your health has declined since buying your policy, you have some hard choices:

  1. Buy a new term life policy at your new health rating for much more money
  2. Convert your policy to universal (permanent) life insurance for much more money
  3. Try to sell your policy with an unknown chance of getting a buyer (see our “whats and whys” section)
  4. Let your valuable coverage lapse

Term Lifextender™ bridges the gap.

Term Lifextender™ is a unique, in-force split-dollar loan program that makes it easier if you qualify to:

  • keep your policy after you convert it to universal (permanent) life insurance, at a significantly lower cost than you could otherwise for 5 or 10 years
  • hold onto a valuable benefit for your family’s security
  • keep your financial options open
  • all while increasing the value of your policy

Here’s how.

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

  • Your insurance agent (and/or TLE) helps you submit the paperwork to convert your term policy to permanent life insurance
  • You pay the minimum conversion fee (not the yearly premium) to your life insurance carrier
  • With your policy now in force, you enter 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 — that’s the split dollar loan
  • You pay an annual fee — much less than otherwise possible — to the TLE Fund
    • How much less? Talk to your agent to find out
  • At the end of the loan period, you have the option to either
    • pay the Fund back the amount of the loan and maintain the policy for as long as you like
    • simply walk away,* knowing that you kept your valuable coverage for much less than otherwise possible

*Please consult your tax advisor about tax consequences.

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