In putting together any financial plan, it is likely that most people should at least consider life insurance. One reason for this is because the proceeds from life insurance can be used by loved ones and survivors to help them with avoiding financial hardship.
If you are considering the purchase of a life insurance policy, there are several items that you need to keep in mind before you make a commitment on coverage. For example, you will want to ensure that you are buying the right type of life insurance protection, as well as the proper amount for your loved ones’ anticipated needs.
In addition, it can also be wise to review the insurance company that you are thinking about purchasing the life insurance coverage from. That way, you will have a much better idea of how strong and stable the insurer is from a financial standpoint, and whether or not the company has a good, positive reputation for paying out its policyholders’ claims. One company that meets these criteria is AXA.
The History of AXA Insurance Company
AXA has a long history in the insurance and financial services world. Since 1859, this company has been assisting both families and businesses to take small and manageable steps towards their financial security.
The company began as the Equitable Life Insurance Society of America when its founder, Henry Hyde left the Mutual Life Insurance Company of New York to branch out on his own. After only its first ten years, Equitable had written more new business than any other company in the world.
Equitable has been a pioneer in the offering and developing of products and services that meet customers’ needs. For instance, the company began to market the first joint and survivor annuity in the early 1880s. The company also pioneered the practice of paying out death benefit claims immediately. Likewise, Equitable introduced variable life insurance, which provides the opportunity to grow cash value based on the performance of underlying equities.
In addition to being one of the most well-respected insurance and financial services companies worldwide, Equitable also collected a long list of achievements and accolades. For example, Equitable supported the American College in launching the CLU (Chartered Life Underwriter) professional designation program.
AXA Company Review
Today, AXA is considered to be a global leader in insurance and asset management. The firm operates in 59 different countries around the globe, with 161,000 employees, and more than 103 million customers. As of year-end 2014, AXA had 1,277 billion in total assets under management, with 92 billion in revenue for that year.
Going forward, AXA has three strategic priorities. These include:
- Acceleration – The company aims to increase its agility in order to expand in emerging and fast-growing markets, and to leap forward in direct insurance.
- Selectivity – The company also plans to allocate its resources to support the development of products and services that are closest to what its customers need.
- Efficiency – AXA also aims to control its costs and to implement its ambitious investment program, particularly in the digital area.
Insurer Ratings and Better Business Bureau Grade
Due in large part to its financial strength and its timely payout of claims, AXA Equitable has earned high ratings from the insurer ratings agencies. These include a(n):
- A (Excellent) from A.M. Best Company
- A+ (Strong) from Fitch
- A1 (Good) from Moody’s
- A+ (Strong) from Standard & Poor’s
In addition, AXA Financial, Inc. has been an accredited member of the Better Business Bureau (BBB) since 1937, and the BBB has provided AXA with an overall grade of A+. This is on a grade scale of A+ to F.
Over the past three years, AXA has closed out a total of 36 customer complaints via the Better Business Bureau, of which five were closed out within the past 12 months. Of the 36 total customer complaints, 28 had to do with problems with the company’s products and/or services, three were in relation to delivery issues, another three had to do with billing and/or collection issues, and the remaining two had to do with advertising and/or sales issues.
Life Insurance Products Offered By AXA
AXA offers a wide array of life insurance coverage alternatives. These include both term and permanent life insurance protection options. With term life insurance, coverage is purchased for a set number of years, such as 10, 15, 20, 25, or 30. While these types of policies provide death benefit protection, there is no cash value or investment build up – and because of that, the premium price of term life insurance can be very affordable. This is particularly the case for those who are younger and in good health at the time of the policy application.
The BrightLife Term life insurance policy is available through AXA. This policy offers affordable premiums that are guaranteed to remain level for 1, 10, 15, or 20 years. After the stated term has elapsed, the premiums will increase each year, based upon the insured’s then-current age and health status.
The term policy that is offered through AXA offers the ability to covert over to a permanent plan, which can then provide lifelong insurance protection, as well as the ability to accumulate cash value on a tax-deferred basis.
For no added premium, the insured may add the Living Benefits Rider (LBR). This rider allows the policyholder to receive a portion of the policy’s death benefit if the insured is diagnosed with a terminal illness. (It is important to note that this rider is not available with the BrightLife TermOne, one-year annual renewable term policy).
AXA also offers several different permanent life insurance policy options. With permanent life insurance, there is death benefit coverage, as well as cash value or investment build up. The growth in the cash value portion of the policy is tax-deferred, which means that there is no tax due on this gain unless or until the funds are withdrawn by the policyholder.
The permanent life insurance policies that are offered through AXA include the following:
- Whole Life
- Universal Life
- Variable Universal Life
As the most basic of permanent life insurance policy options, whole life insurance provides a set amount of death benefit, as well as cash value that grows over time, based on a rate that is set by the insurance carrier. The death benefit on a whole life insurance policy will remain in force for life – provided that the premium is paid.
The amount of the premium that is owed on a whole life insurance policy will remain set – regardless of the insured’s increasing age over time, and even if he or she is diagnosed with an adverse health condition.
AXA offers an Interest Sensitive Whole Life insurance policy option. This is a permanent policy with a guaranteed minimum cash value that increases each year and equals the face amount at the insured’s age 100. The policy account value may also be enhanced by additional interest.
In addition, depending on needs of the insured, this policy can be “customized” by adding one or more of several policy riders. (Typically, these riders will cost an additional amount of premium).
AXA also offers universal life insurance coverage. These policies also provide death benefit protection for life – provided that the premium continues to be paid – as well as cash value, build up. Universal life insurance, however, is considered to be more flexible than whole life. One reason for this is because the policyholder is allowed (within certain guidelines) to change the timing of the premium due date. They may also be able to decide how much of their premium dollars will go towards the policy’s death benefit, and how much will go into the cash value.
The universal life insurance plans that are offered through AXA include:
- BrightLife Protect – This is a flexible premium, cost-effective life insurance policy option that offers both the opportunity for lifetime insurance protection and the potential accumulation of cash value through allocation to a select account and/or a fixed account.
- BrightLife Grow – The BrightLife Grow is also a flexible premium plan that offers the potential for cash value growth via an interest crediting linked to major market indexed. That way, the policyholder is able to participate in the upside potential of the equities markets with built-in guaranteed downside protection.
Another type of permanent life insurance – variable universal life – is offered through AXA. Variable universal life insurance offers death benefit protection, as well as the potential to build up cash value via the policy holder’s choice of underlying portfolios that offer differing levels of risk and growth potential. Any of the earnings that are generated from the underlying investment options are credited to the policy’s cash value.
The variable universal life insurance policy options available through AXA include the IncentiveLife Optimizer lll, and the IncentiveLife Legacy lll.
Other Products and Services Available
In addition to providing a long list of life insurance policy options, AXA also offers the following:
- Variable Annuities – Variable annuities provide the opportunity for market appreciation through a variety of investment options on a tax-deferred basis. These products can also offer future retirement income – possibly even an income stream that cannot be outlived, regardless of how long it is needed.
- Individual Retirement Accounts (IRAs) – Through AXA, there are a number of different Individual Retirement Account options to choose from, including Traditional IRAs, Roth IRAs, and SEP IRAs, as well as Coverdell College Savings Accounts.
- Mutual Funds – AXA offers numerous mutual fund investment options. These include the 1290 Funds, which bring the expertise of diverse investment management firms to help individual investors with building a well-diversified portfolio, and the Partner mutual fund families, which offer diverse investment objectives and philosophies, and are designed to meet personal financial and investment goals.
- Brokerage and Advisory Accounts – There a numerous financial products and services available through AXA. Because of that, portfolios can be designed to fit nearly any type of need or goal.
How to Get the Best Premium Rates on Life Insurance Coverage Through AXA Company
If you are in the process of seeking the best premium rates on life insurance coverage through AXA – or any insurance carrier – it is recommended that you work with an independent life insurance agency or brokerage that can show you side-by-side comparisons of different companies and prices. From there, you can choose the one that works best for you and for your budget.
When you are ready to move forward, we can help. We are an independent life insurance brokerage, and we work with many of the top insurance carriers in the marketplace today. We can assist you with getting all of the key details that you’ll require for making a well-informed life insurance buying decision. We can do this for you very quickly and easily – so if you are ready to proceed, then all you have to do is just fill in some information on our quote form on this page.
Should you find that you still have any additional questions or concerns regarding life insurance protection or types of coverage, please feel free to contact us directly via phone. Our experts will be happy to walk you through any scenario and explain what you need to know. We are available toll-free by dialing 888-552-6159.
We understand that the purchase of a life insurance policy can be somewhat overwhelming. There are so many different options that you can choose from, and you want to make sure that you are going with the plan that will work the best for your loved ones’ future needs. But the good news is that this process can be made so much easier if you are working with an ally on your side. So, contact us today – we’re here to help.