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Frequently Asked Questions | Advisers

Answers to common questions about iExtend and the iExtend Life Co-Ownership Arrangement.

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How it works and eligibility

iExtend offers an alternative to policy owners who have committed to cancelling or reducing their life cover.

Learn more about the journey here.

No. Qualification for the iExtend Co-Ownership Arrangement relies on several factors including policy terms and conditions, premiums payable, sums insured and the health of the life insured. Information relating to these matters will need to be shared with iExtend (with the willing co-operation of all stakeholders) so that our expert assessment team can decide.

Unfortunately, we cannot help everyone, and our focus is on helping those who stand to lose the most when cancelling their cover.

iExtend is a referral only choice for most advisers. This means we do all the heavy lifting, give the General Advice and complete the administration. The adviser simply refers the client to us.

Policy owners who satisfy the following eligibility criteria:

• The policy owner is committed to cancelling or reducing their policy;

• Holds an annually renewable term life insurance policy that: 

  • has a minimum expiry age of 90; 
  • is fully underwritten;
  • and  is in an ownership structure that allows direct transfer to the Custodian.

• The life insured is aged 45 to 85 at the time of application;

• The life insured is an Australian or a New Zealand citizen, permanently a resident of Australia;

• Satisfy iExtend’s risk assessment, including a health evaluation reflecting changes in the life insured’s health (which may include height, weight, lifestyle, diet, family history and medical history) since the Policy was initially taken out.

• The ownership of the Policy is able to be transferred to a custodian chosen by iExtend.

For more information, please refer to the eligibility page here.

Co-ownership

Under an iExtend Life Co-Ownership Arrangement, iExtend accepts policy ownership and the ongoing financial risk, paying future premiums on the co-owned policy for the duration of the Arrangement, while committing to share future claim benefits from that co-owned policy with the original policyholder on a sliding scale based on how long iExtend has been paying for the cover. The only premiums your client would pay is for cover they have chosen to keep themselves rather than cancel.

Based on a sliding scale, your client will always receive a percentage of any claim benefit paid on the policy (including future indexation, if indexation was chosen), regardless of how much iExtend has paid to keep the cover in force since the ‘Policy Acquisition’ date.

There will always be a minimum of 10% of any successful claim that will be received by the policy owner, their estate or beneficiaries so long as the iExtend Life Co-Ownership Arrangement is still in force. If there is indexation on the policy, the claims pay-out increases.

For example, if your client transfers a policy to iExtend and the life insured passes away ten years later, even though they had not paid any premiums over that period, the custodian will pay your client, your client's estate or nominated beneficiaries an agreed share of the claim benefit as per the Arrangement. 

For more information, check out the 'How it Works' page here.

No. Where iExtend determines that it will not fund future Premiums payable under the Arrangement, then iExtend will notify the policy owner with sixty (60) Calendar Days notice of its intention to terminate the Arrangement (Intention Notice) and offer the policy owner the option to reclaim full ownership of the Policy and responsibility for the future Premiums. Importantly, if this situation arises, iExtend will not request repayment of any past premiums from the policy owner.

Policy cancellation

iExtend will only consider accepting life insurance cover that the client has confirmed will otherwise be cancelled or reduced. If you believe your client and their policy may meet our acceptance criteria, you can simply inform the client that there may be an alternative to policy cancellation or reduction through iExtend.

iExtend is only an option once their client has independently decided to cancel all or part of their life insurance cover. If, after assessing the future costs and potential benefits, your client chooses to reduce their premium commitment, it may be in your client’s Best Interest to refer or introduce them to iExtend.

Business Support

If your client has decided to cancel some or all their cover, iExtend offers a range of material to the help clarify whether they should consider the possibility of entering a Life Co-Ownership Arrangement with iExtend or continue with cancelling or reducing their life cover. 

Advisers are responsible for educating themselves on the iExtend product. iExtend offers licensees complete business support, including access to our underwriting team, ad hoc education, training and masterclasses in policyholder pre-assessing and the use of our B2B technology. 

iExtend’s website and CPD education platform will be a valuable resource for any registered advisers to access education material, thought leadership, information and ideas shared by some of Australia’s most successful risk advisers.

Additionally, it is important that you read our Total Market Determination and Product Disclosure Statement on our documents page here.

About iExtend

iExtend is a private company formed by a group of like-minded people who saw an opportunity to help life insurance policyholders retain an interest in their unaffordable (yet valuable) life insurance cover.

iExtend aims to ‘give something back’ to policyholders who have value in their policy but have made the decision to cancel (reduce) their cover.

How it works

About iExtend

iExi Pty Ltd (iExtend)
ABN 33 654 132 813
AFSL 555362

Suite 3, Level 30,
420 George Street,
Sydney NSW 2000

[email protected]

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.

© 2024 iExtend Holdings Company Pty Ltd. All rights reserved.

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