The “whats” and “hows” of Term Lifextender™
How could Term Lifextender™ help me?
Term Lifextender™ helps you convert your policy more affordably than doing it on your own, so you can maintain your valuable coverage and protect your family’s financial security.
During the TLE loan period, as you get older and if your health declines, your policy may become more valuable. After you pay back the loan, you can
- keep your policy for as long as you choose, or
- as long as there is a secondary market, you may be able to sell your policy for cash
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 TLE Fund pre-pays your premium to the insurance carrier for the loan period; that’s the split dollar loan
- You pay a low annual fee to the TLE Fund
- At the end of the loan period, you repay the TLE Fund the split dollar loan and keep the policy as long as you like
- In case of death during the loan period, your beneficiaries collect the full death benefit, minus the amount of the split dollar loan
- Once the loan is paid back in full, and as long as you keep your policy, your beneficiaries regain the full death benefit
What if I don’t pay back the loan at the end of the TLE period?
Term Lifextender™ is designed to make it possible for you to hold onto your valuable insurance and maintain your policy even after the loan period, with the option to sell it yourself when you decide the time is right.
If you choose, assuming there is a buyer, you could pay back the loan and sell your policy at the same time. Your agent can discuss your options as the time approaches.
We believe that there is tremendous value in your keeping the policy. That said, should you decide that it’s not in your best interest to repay the amount of the loan, that is your option. In that case, ownership of the policy would transfer to the TLE Fund.
Please talk with your tax advisor about tax consequences.
I’m still relatively healthy. Is Term Lifextender™ right for me?
Great question. If you’re relatively healthy and you haven’t had a change in your health status since buying your original term policy, you might not need TLE. You might decide that it’s in your best interest to get a new term life policy.
You can of course apply for TLE. Although we do not require a physical, we will look at your health records and create a customized proposal. If we feel that you can do better with a new term policy, we’ll let you know.
If I’m interested in TLE, what do I need to do next?
- Find your term life policy. Check to see if there’s a conversion option, and when your conversion option expires. That will tell you how quickly you need to act. OR
- Contact your life insurance agent. Discuss all your options, including Term Lifextender™
- If you don’t have a life insurance agent, call us. We’ll help you locate one near you who is familiar with TLE. Call 914.701.0300
Send your agent a link to this website. www.termlifextender.com