How it works
iExtend provides an alternative option to policy owners who have committed to cancelling or reducing their life insurance cover
Step 1:
Eligibility Check
During your cancellation process, confirm your client’s commitment to cancelling or reducing their life insurance cover.
Use our real-time QuickCalc pre-assessment tool to see if the client’s policy may qualify.
Start here:
Try our QuickCalc
Step 2:
Introduce your client
The QuickCalc pre-assessment tool will confirm if your client’s policy may qualify for co-ownership. Refer your client to iExtend or contact your Distribution Manager to discuss next steps.
Start here:
Contact a Distribution Manager
Step 3:
Policy Assessment and Final Approval
Submit the life insurance policy and health information for final assessment. Once approved, the policy owner is eligible to apply for the iExtend Life Co-Ownership Arrangement (the Arrangement).
Once approved, the client’s policy will then be transferred to iExtend’s custodian. iExtend will pay all future premiums of the co-owned life insurance cover for the duration of the Arrangement.
Step 4:
Share Claim Proceeds
When a successful claim is paid by the insurer: you, your nominated beneficiaries or estate will receive your share of the claim proceeds.
Start here:
Make a Claim
The Basics
If your client has decided to cancel or reduce their life insurance policy, they may be eligible for an iExtend Life Co-Ownership Arrangement (Arrangement).
iExtend will pay all the premiums on the co-owned life insurance cover and share the proceeds from any future claim with them, their beneficiaries or estate. The pre-agreed share is based on how long the policy has been co-owned with iExtend.
iExtend is a referral only choice for most advisers. This means we do all the heavy lifting, give the General Advice and complete administration. You, the adviser, simply need to refer your client to us and follow the simple steps.
To be eligible for the iExtend Arrangement:
- A policy owner must have decided to cancel or reduce the cover on their policy; and
- iExtend will have conducted an updated eligibility health risk assessment, which includes evaluating any chronic changes in the life insured’s health since the policy was originally taken out; and
- The policy needs to be a fully underwritten term life cover with a minimum expiry age of 90.
For more information on eligibility for the iExtend Arrangement, please see the Target Market Determination (TMD).
If the policy is eligible for an Arrangement, iExtend may make an offer to the policy owner.
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. iExtend cannot (and will not) make a recommendation for you.
What type of policies qualify?
Policy Ownership:
To enter 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.
A policy may be owned within different structures:
- Individual: An individual has the right to transfer policy ownership.
- Business Owned: A business owned policy can be transferred to another person with the agreement of the company director(s).
- SMSF: An SMSF policy can be transferred to an individual or directly to the custodian with the agreement of the trustee(s) of that SMSF (either individual or corporate trustee).
- Group Super: If a policy is owned under a group arrangement e.g. an industry superfund, it cannot be transferred to another person because it is owned by a separate trustee, and so cannot be eligible for the Arrangement.
