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For consumers who can pay for their universal life coverage quicker, AXA Equitable Life Insurance is making premiums cheaper.
AXA Equitable recently announced today that it is offering more competitive rates in approved jurisdictions on its Athena Universal LifeSM with a built-in Lapse Protection Rider. The rider ensures coverage will not lapse for a specific period of time, even if the policy's account value falls to zero. As long as certain requirements are met, the insurance protection is guaranteed to last up to a lifetime.
"We've enhanced Athena UL-LPR by offering more competitive rates in 'short-pay' situations, in which the policyholder makes larger but a limited number of planned premium payments in early policy years, rather than smaller payments over a longer period," explained Claude Methot, senior vice president and chief product officer. "In essence, we're making it more attractive for many people to lock-in their guarantees sooner."
The Lapse Protection Rider alleviates the inherent premium payment "sensitivity" associated with current interest crediting rates, cost of insurance charges, and other non-guaranteed policy expenses traditional UL policies have. With an Athena UL-LPR, however, AXA can't increase the premium requirements for any reason as long as certain requirements are met.
Depending on current and future needs, the Athena UL-LPR product also offers a choice of optional riders for an additional cost, including a Long-Term Care ServicesSM Rider. The rider is available for a fee to people between 20 and 70 and functions as an acceleration of the life insurance policy's death benefit to assist those who become chronically ill and receive qualified long-term care. When electing this rider, the policyholder chooses from a certain benefit percentage of the policy's face amount, reflecting the maximum monthly payments to be received if he or she becomes chronically ill.
Methot said choosing the Athena UL-LPR product with the Long-Term Care Services rider helps consumers avoid a "use it or lose it" scenario.
"Long-term care insurance can require expensive premiums, even if it's never used," he explained. "Our Athena UL-LPR /Long-Term Care Services Rider combination offers an affordable, hybrid solution to the 'use it or lose it' dilemma."
Should the need to use it arise, the Long-Term Care Services Rider accelerates the life insurance death benefit, defraying the burden of long-term care medical expenses and protecting retirement assets from being depleted. The death benefit is reduced by the amount accelerated.
Or, if long-term care is never needed, the full income tax-free death benefit is paid to the beneficiaries. |
