Policy Co-Ownership Eligibility Check?
Committed To Cancelling
For Life Insurance Only
Aged 45+
Policy Expiry Age 90+
As of 2 July 2024, we have been granted an Australian Financial Services License (AFSL) by ASIC, providing iExtend the opportunity to provide a broader service and clarity on how we operate in a regulated environment.
As of 2 July 2024, we have been granted an Australian Financial Services License (AFSL) by ASIC, providing iExtend the opportunity to provide a broader service and clarity on how we operate in a regulated environment.
For different personal reasons, policyholders, who have been paying life cover over many years, may decide to cancel their Life insurance cover.
iExtend offers an alternative to life insurance policyholders who have committed to cancelling or reducing their life cover.
iExtend is not an alternative to policyholders simply trying to decide whether to retain their cover. It is for those committed to cancelling or reducing their life cover.
If the policy is eligible for co-ownership, regardless of policy size, we are committed to providing a high-quality experience for all.
iExtend works with policyholder clients through their trusted adviser – that’s you!
We support advisers by helping their clients with a co-ownership model for Life insurance policies. This model lets policyholders stop paying premiums while keeping some claim benefits. Our goal is to help Australians retain the value of their Life insurance asset.
iExtend provides the opportunity for advisers to fulfil with their ‘best interest’ obligations to their clients.
We pre-qualify and assess your client’s policy and health using intuitive, plain English questions.
If you need assistance, please get in touch with us today. We communicate clearly and in a language you can understand. Our dedicated team will devote their full attention to your case.
Start your quick and easy online registration today.
Or, if you have a question, get in touch with our team.
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We acknowledge the Gadigal of the Eora Nation, the traditional owners and custodians of the land on which we work. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who work and live on this land.
The iExtend Life Co-Ownership Arrangement is issued by iExi Pty Ltd ABN 33 654 132 813 AFSL 555362 (iExtend). Please read our Financial Services Guide. The information provided in this document may contain general advice, but it does not take into account your client’s objectives, financial situation or needs.
Before acting on or making any decision in relation to the iExtend Life Co-Ownership Arrangement or any other financial product, you should consider the appropriateness of the information, having regard to your client’s personal circumstances, as well as the Product Disclosure Statement and Target Market Determination for the iExtend Life Co-Ownership Arrangement.
By using our website, you agree to our Privacy Policy and website Terms & Conditions.
5-Steps Onboarding Explained
1. Registration:
A two-step online initiated process, followed by an introduction to the compliance friendly, educational learning pathway FAQs so you can read and listen to our thought leaders on how the proposition was developed and some financial projection illustrations.
2. Quick Calc – Vetting a policy:
The Quick Calc gives you the opportunity to do multiple quotes to test potential transfer eligibility 24/7 with the ability to delete or save the outcome for up to 30 days. This calc supports advisers with their ‘best interest’ duties by providing an option to save and store the indicative decision with their client’s compliance records.
3. Pre-Assessment and Assessment- Qualifying a Policy:
The pre-assessment (application) builds on the Quick Calc decision with two more flexible self-service options:
Adviser Tip (Step 3)- Tele Health Questionnaire
To speed up the pre-assessment qualification for those clients with a real-time ‘Qualify’ or ‘Borderline’ indication from the Quick Calc or Pre-assessment Calc, we recommend downloading the iExtend Tele-health condition-specific or general health questionnaire located in our Resources folder. The signature free short questionnaires can make all the difference and help to fast track the pre-assessment finalisation, providing more information from the client on a specific health condition and prior to the requesting health information as set out in step 4 of the journey.
4. Health Information – Getting Policy Holders Approved Faster:
This pre-assessment phase moves to the final risk assessment phase in this step. iExtend has designed some practical options to support fast tracking of health information or requesting an independent specialist opinion. This alleviates the need to ask your clients to request medical records and reduces administration burden in chasing up medical reports.
iExtend has partnered with a market leading medical services platform provider to help manage all health information requests, including:
iExtend has built a Virtual Specialist Health Opinion Panel Network. This independent Panel allows iExtend to access imminent specialists across all fields of medicine and health sciences to obtain expert opinions within days.
5. Eligible:
Using all necessary policy, premium and health information garnered through the pre-assessment process explained in steps 1 to 4 and ensuring that all privacy and health consent authorities have been obtained, the policy will be assessed against iExtend’s stringent investment criteria.
If the policy is deemed to have met those criteria, the policy owner can apply for the Life Co-Ownership Arrangement. If accepted, the assignment transfer is completed with the Insurer. iExtend’s Custodian then maintains ownership of the policy throughout the Life Co-Ownership Arrangement.
a)
A policyholder, first and foremost has decided to cancel or reduce their cover on their Policy; and
b)
The policyholder’s financial adviser has recommended that the policyholder consider entering into a Life Co-Ownership Arrangement (Arrangement) with iExtend; and
c)
iExtend has conducted an updated eligibility health risk assessment, which includes evaluating any chronic changes in the policyholder’s health since the policy was originally taken out; and
d)
The policy needs to be a fully underwritten term life cover to a minimum expiry age of 90. Find out more about which policies may qualify.
For more information on eligibility for the iExtend offer, please see the Target Market Determination (TMD).
If the policy is eligible for an Arrangement, iExtend may make an offer to the policyholder.
Making the offer doesn’t constitute a view by iExtend that you should take the offer to enter the Arrangement. It simply means iExtend is open to entering into the Arrangement, if you and your adviser consider that it is suitable for you. iExtend cannot (and will not) make a recommendation for you.
If you have decided to cancel or reduce your term Life insurance policy, you may be eligible for an iExtend Life Co-Ownership Arrangement (Arrangement).
iExtend will pay all the premiums on the co-owned Life cover and share the proceeds from any future claim with you, your beneficiaries or estate. The proportion of the claim proceeds shared will depend on how long the Arrangement
has been in place.
The pre-agreed share is based on how long the policy has been co-owned with iExtend.
In order to enter into an Arrangement with iExtend, a policy must be owned by an individual in their own name or in a structure that allows direct transfer to a custodian*.
*Perpetual Corporate Trust Limited, iExtend’s Custodian, will be the registered legal titleholder and the named party with the life company and will act on instructions from iExtend to distribute the proportionate proceeds of any successful claim to your client and iExtend.
Policy cancellation means that life cover is forfeited with no residual benefit to the policyholders, often after decades of premium payments.
Partially cancelling your cover may provide short term relief, but with premiums rising sharply in the later stages of life, this relief is often short lived with nothing to show in return for the additional year’s premiums if the policy is eventually cancelled.
The cancellation problem
Cancelling your policy means:
If you have decided to cancel your life insurance, iExtend may be an option.
*Real name withheld
John*, aged 65, had a $800,000 Life policy taken out in 2002, he decided to reduce his cover. His adviser offered the option prior to cancellation of doing a complementary iExtend online pre-assessment before reducing John’s cover. The policy was in pre-lapse arrears by one-month and was set to lapse fully within the next 3 to 4 weeks.
Q. How had John’s health changed since he took out the policy?
John developed type 1 insulin dependent diabetes in 2012 and in 2020, he experienced a sudden heart attack that required a triple coronary artery bypass. John has recovered well and is taking medication to control his blood pressure, cholesterol, and diabetes.
Q. Was John eligible for the iExtend co-ownership offer?
The adviser, having a good understanding of John’s changed health over the last 2 years, proceeded to an online Quick Calc pre-assessment by inputting current sum insured, premium and other general details. John was able to answer the intuitive 3 general health questions, which took him 2 to 3 minutes. The adviser received a real-time ‘indicative’ pre-assessment and unique reference ID email confirmation that John ‘may qualify.’
Q. What happened next?
Michael aged 66 has a $2 million insurance policy since 2015. Unfortunately, due to his ongoing chronic health conditions, he had to retire early in 2021. With rising premiums becoming unaffordable, he has decided to cancel his policy, even though with his changed health, he sees the value of keeping his cover.
Q. How has Michael’s health changed?
Michael is overweight 5 foot 7 inches and 122 kgs. In 2017, he was diagnosed with severe sleep apnoea and in 2019, he developed high blood pressure and diagnosed type 2 diabetes. Michael suffered a mild stroke in 2021 with mild impact to his day-to-day mobility, and as a precaution he has stopped driving for 12 months.
Michael’s adviser prior to cancellation decides to check if he might be eligible for an iExtend offer. He answers the 3 questions and policy information on behalf of his Michael into the iExtend Quick Calc, that indicated Michael ‘May Qualify’ . From there, the adviser continued to pre-assessment which confirmed eligibility and received a real-time email confirmation.
Q. How was Michael able to get a pre-assessment so quickly?
Due to the urgency with Michael’s policy being overdue by 6 weeks, time was of the essence. Michael signed the privacy and medical consent forms. Fortunately, Michael had a copy of this hospital records from 2021 and blood sugar levels. With this information, iExtend Risk Team were able to finalise Co-Ownership eligibility without needing to obtain medical reports. An offer was made to Michael within 5 days to co-own his cover with iExtend.
We acknowledge the Gadigal of the Eora Nation, the traditional owners and custodians of the land on which we work. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who work and live on this land.
The iExtend Life Co-Ownership Arrangement is issued by iExi Pty Ltd ABN 33 654 132 813 AFSL 555362 (iExtend). Please read our Financial Services Guide. The information provided in this document may contain general advice, but it does not take into account your client’s objectives, financial situation or needs.
Before acting on or making any decision in relation to the iExtend Life Co-Ownership Arrangement or any other financial product, you should consider the appropriateness of the information, having regard to your client’s personal circumstances, as well as the Product Disclosure Statement and Target Market Determination for the iExtend Life Co-Ownership Arrangement.
By using our website, you agree to our Privacy Policy and website Terms & Conditions.
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