AXA Refines Long-Term Care Rider Offering To Align with Needs of More Customers
June 14 2016 - 9:39AM
Business Wire
Our population as a whole is living longer, and that is
something we are all happy about. Longevity and the security that
we all want require new strategies, many of which were not
available to our parents’ generation.
Long-term care (LTC) coverage is something that people should
consider, but one problem is that standalone LTC coverage can be
expensive for some. That led some insurance companies to start
thinking about different ways to offer LTC-type benefits to
customers. AXA Equitable Life Insurance Company (AXA Equitable) and
MONY Life Insurance Company of America (MLOA) have been offering
supplemental LTC coverage as a “rider” with its insurance policies
since 2006, and is among a handful of early entrants to the LTC
market. Over the years of offering LTC riders on life insurance
policies and studying data amassed over the last ten years of
offering such coverage, AXA US has gained insights that will help
make this needed coverage available to a wider market. The rider
allows the policy’s death benefit to be accelerated if the insured
is chronically ill.
“We examined the rules around our risk assessment experience and
realigned them, which will allow us to make LTC coverage available
to more customers,” said Mike Roscoe, head of Life Product
Development for AXA US. “While we have had an LTC rider available
on all single life permanent products for many years, these
modifications are oriented toward the changing marketplace that
needs these benefits as never before as our population ages.”
LTC Rider’s Flexibility
- A benefit no matter what life brings.
For clients in need of life insurance coverage, the life policy
with the LTC rider can be used for life insurance or for long-term
care or to potentially supplement retirement income.
- The incremental cost of the rider can
offer potential cost savings over “standalone” LTC coverage.
- Simplified claim benefit process
eliminates the need to submit receipts and allows clients to focus
on their health and not worry about paperwork.
Today’s Families Need Options that Were not Available to
Their Parents
The baby boomers, born between 1946 and 1964, began turning 65
in 2011. This is creating a population of older Americans who may
need extended care for many years.1 With advances in medical care
producing longer lifespans, other factors are impacting the
situation: families are more spread out geographically and both
spouses may need to remain in the workforce longer. Caregivers who
are immediate family members may be less common in the future. AARP
data show that the “average” caregiver is a 49-year-old woman who
also works outside the home, in addition to providing about 20
hours per week of care.2
The changes that AXA Equitable and MLOA have made to its LTC
rider offering are intended to better align it to customer needs,
adaptable to the changing demographics of modern American families,
and to make it potentially more accessible to additional customers,
their parents, and their children.
DISCLOSURE
Client must qualify separately for the LTCS Rider, a client may
qualify for the insurance but not the rider. The rider also has
restrictions and limitations.
Clients considering Life Insurance with a LTCR Rider or a
separate Long Term Care policy must consider their need for life
insurance coverage first as well as their need for long term care.
Life Insurance with the LTCS Rider will provide one pool of money
available for their benefit. A separate life insurance policy and a
stand alone LTC policy will provide two pools of money available
for benefit if long term care is required. Client should also
consider other features such as inflation protection and spousal
discounts that may be available on stand alone policies but not on
insurance policy riders.
About AXA
“AXA” (also referred to as “AXA US”) is a brand name of AXA
Equitable Financial Services, LLC and its family of companies,
including AXA Equitable Life Insurance Company (NY, NY), MONY Life
Insurance Company of America (AZ stock company, administrative
office: Jersey City, NJ), AXA Advisors, LLC, and AXA Distributors,
LLC. In business since 1859, AXA Equitable Life Insurance Company
(New York, NY) which enjoys an illustrious 150 year history and
MONY Life Insurance Company of America have a shared tradition of
helping their customers reach their most important goals. They are
leading financial protection companies and are among the nation’s
premier providers of life insurance and annuity products
distributed to individuals and business owners through its retail
distribution channel, AXA Advisors, LLC (member FINRA, SIPC) and to
the financial services market through its wholesale distribution
channel, AXA Distributors, LLC (member FINRA, SIPC).
AXA S.A. (also referred to as “AXA Group”) is a
Paris-headquartered holding company for a group of international
insurance and financial services companies, including AXA Equitable
Financial Services, LLC companies. AXA S.A. is a worldwide leader
in financial protection strategies and wealth management with 103
million clients in 64 countries as of Dec. 31, 2015. AXA S.A. has
been ranked the No. 1 insurance brand in the world by Interbrand
for seven consecutive years as of Oct. 5, 2015.
The obligations of AXA Equitable Life Insurance Company and MONY
Life Insurance Company of America are backed solely by their
claims-paying ability. Find AXA
on Facebook, Twitter and LinkedIn. For more
information, visit www.axa.com.
Life insurance – Is not a deposit of any Bank – Is not FDIC
Insured – Are not insured by any Federal Government Agency – Are
not Guaranteed by any Bank or Savings Association.
1Centers for Disease Control and Prevention. “The State of Aging
and Health in America” 2013.
2Feinberg, L., Testimony before the Commission on Long-Term
Care. AARP Public Policy Institute, July 17, 2013.
GE-115709 (6/15)
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version on businesswire.com: http://www.businesswire.com/news/home/20160614005863/en/
AXAJohn Cline, 212-314-5142john.cline@axa.us.com
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