Introducing Steven
Steven, 68, from St Kilda, was experiencing increasing affordability pressure due to the rising cost of living. As a result, he decided to cancel both of his life insurance policies. Before taking action, he informed his trusted adviser of his intention to cancel the cover.
Role of the Adviser
The adviser recognised that cancelling both policies would permanently remove financial protection for Steven’s beneficiary. So, rather than automatically processing the cancellation, he referred Steven to iExtend’s licensed alternative to cancellation or reduction. Without the adviser’s referral, valuable cover would have been lost. Throughout the entire process, the client relationship remained with the adviser, who was kept informed along the way.
Role of iExtend
iExtend provides an alternative for policy owners considering cancelling or reducing their life insurance, enabling them to retain part of their cover without continuing to fund the full premiums. In this instance, Steven was eligible for iExtend’s coownership on both policies. In October 2022, iExtend became co-owner of Steven’s first policy (with a sum insured of $327,624) and took over all premiums. We also acquired a $150,000 co-ownership interest in his second policy (from a total sum insured of $350,000), enabling him to reduce the premium rather than cancel the cover.
Steven’s Outcome
Around two years after commencing the co-ownership arrangement, Steven sadly (and unexpectedly) passed away due to surgical complications. Because the adviser referred Steven to iExtend before cancellation, both policies remained in force and paid out, with a total of $391,050 (made up of $200,000 of cover that he retained and $191,050 from the two policies he co-owned with iExtend) going to his beneficiary.
Had Steven cancelled the policies, valuable cover would have been lost.
Instead, his beneficiary received critical financial support at a time of sudden loss, helping to ease immediate financial strain when it mattered most.
Disclaimer: *Not all policies will result in a claim payment. This 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.
