Introducing Sam
$1.2 million life insurance policy co-owned with iExtend.
The policy owner, Sam, was living with dementia, diabetes, and heart disease. His spouse, acting as Enduring Power of Attorney (EPOA), was struggling to balance escalating medical and aged care costs alongside significant half-yearly premiums that were at risk of lapse. The financial strain was mounting, leaving her and their adult children unable to keep pace with expenses.
Role of the Adviser
The adviser recognised the financial and personal pressures facing the family and worked with iExtend to explore alternatives to cancelling the policy. The adviser facilitated engagement between the policy owner’s spouse (EPOA), the treating specialist, and iExtend early in the process.
Role of iExtend
We recognise that some policy owners may be facing difficult circumstances, and we provide tailored communication and compassionate support to meet their needs.
In collaboration with the adviser, iExtend’s distribution team escalated the matter to its underwriting team, who assessed eligibility and onboarded the policy within 25 days in April 2023, avoiding the policy lapsing.
Given the nature of the client’s condition and guided by iExtend’s Vulnerable Persons Policy, iExtend contributed clinical and process input to support fair and transparent decision making. During the adviser-led discussions with the spouse and treating neurologist, iExtend highlighted that the information suggested shortened life expectancy, and outlined that a terminal illness claim pathway may be relevant for the adviser and family to consider in the future.
Outcome
With only three weeks remaining before the iExtend renewal date, iExtend secured access to the higher claims payout scale of 60%.
Due to the collaboration, Sam’s estate qualified for a 60% payout, turning what would have been financial hardship into meaningful support for his spouse and beneficiaries. The impact transformed financial strain into support at a critical moment.
Without iExtend, the client’s entitlement would have been $0 if the policy had been cancelled.
Through iExtend, Sam’s estate was able to receive $785,123.40, and not have to pay any premium from the point of co-ownership, helping to provide financial security and peace of mind to his spouse and family during a deeply difficult time.
Disclaimer: This claims case study is based on a real client experience and serves as an educational and illustrative example. It does not constitute financial or legal advice. To protect client confidentiality and privacy, names and certain identifying details have been altered.
