AXA ranks as one of the top insurance companies in the world and is making inroads as one of the best life insurance companies in the U.S. In the following AXA Equitable review, we will discuss the company’s products and ratings to help you decide if AXA is the right fit for you, based on your own need, goals and objectives.
Review of AXA Equitable Life Insurance Company
Before we dive into the various products AXA offers, let’s take a moment to get more familiar with AXA Equitable.
AXA traces its beginning back to 1817. The company was formed by the merger of various companies that insured agricultural risks in Normandy. The merger of different insurers covering fire, life, and accident created Ancienne Mutuelle group, the “historic ancestor” of AXA. The company officially became known as AXA in July 1985.
According to the company’s website, “AXA” is the 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, AXA Advisors, LLC, and AXA Distributors, LLC.
AXA Equitable Life Insurance Company Ratings
Ratings as of December 2017:
- A.M. Best rating: A
- Fitch rating: A+
- Moody’s Investor Service rating: A1
- Standard and Poor’s rating: A+
- Comdex Ranking: 84
Additionally, AXA Equitable Life Insurance Company has an A+ rating with the BBB, with 37 customer complaints in the last 3 years, all resolved.
AXA Equitable Life Insurance Products
AXA is focused on retirement, investments and life insurance.
- Individual Retirement Accounts
- Variable Annuities
- Brokerage and Advisory Accounts
- Mutual Funds
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Variable Life Insurance
- Survivorship Life Insurance
AXA Life Insurance Policies
Although many so called financial “experts” try and lump life insurance into term life vs whole life, the reality is it is much more nuanced. AXA Life Insurance Company offers four types of coverage, term, whole, universal and variable.
Benefits of Term Life Insurance
- Lower Initial Cost
- Income Protection
- Mortgage Protection
- Conversion Option
Benefits of Permanent Life Insurance
- Buy Sell Agreements
- Key Man Insurance
- Estate Planning
- Executive Bonus (Section 162) Plans
- Non-Qualified Deferred Compensation Plans
- Split Dollar Life Insurance
- Infinite Banking
AXA Life Insurance Policies [Plans and Features]
Term Life Insurance
AXA’s BrightLife Term℠ product provides temporary coverage, with available terms of 1, 10, 15 and 20 years. The policy is convertible term life insurance, which allows you to convert your term policy to permanent coverage. With level premiums you do not need to worry about increasing premiums during the policy term.
The advantages of term life insurance are a lower initial premiums while you are young, leverage dollars into death benefit, specific tailored term lengths to cover measurable assets, such as a mortgage.
Permanent Life Insurance
AXA’s Interest Sensitive Whole Life℠ provides guaranteed cash accumulation, guaranteed fixed premiums and a guaranteed death benefit. The policy is ordinary life insurance offering level premium payments until age 100.
AXA offers 2 different universal life products, BrightLife® Protect and BrightLife® Grow. Universal life insurance provides flexibility, allowing you to adjust premium payments and the death benefit. These universal life products are in the indexed universal life category, which allow you to allocate a portion or all of your premium payment into indexed accounts or a fixed account.
AXA BrightLife Grow Indexed Universal Life allows you to choose from eight indexed options, in one year or three year options. You also can choose between two different death benefit options, including level death benefit or increasing death benefit, which you can swtich back and forth based on your own goals.
Variable Universal Life
AXA offers 2 VUL products,IncentiveLife Optimizer® III and IncentiveLife Legacy® III. Variable Universal Life provides the flexibility of universal coverage but with the ability to earn potentially higher returns due to the investment portion of the policy. With VUL, you can choose to allocate your premium to stock, bond, international and money market subaccount investment options.
Long Term Care Services Rider℠
AXA offers long-term care insurance protection through its Long-Term Care Services (LTCS) Rider (in FL, the rider is called “Long-Term Care Insurance Rider”. In CA, the rider is called “Comprehensive Long-Term Care Rider”). It is available on AXA’s single life UL and VUL policies. The rider provides the ability for you to obtain a monthly benefit by accelerating the policy’s death benefit to pay for qualified long-term care expenses if your are diagnosed with a qualifying chronic illness.
AXA’s long-term care life insurance provides the benefits of life insurance, including cash value accumulation and a lump sum death benefit, combined with long-term care insurance to provide for the costs associated with LTC services.
Additional Benefits of Permanent Life Insurance
Tax free life insurance policy loans
Tax free life insurance loans are available, using your cash value as collateral. You can borrow directly from the insurance company. Another option is to borrow from a local bank that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.
Tax deferred cash value growth
IRC 7702 governs cash value life insurance, and under the code, cash value accumulation grows tax deferred. And if you utilize the policy correctly you will never need to pay taxes on the cash value growth.
Tax free death benefit
The life insurance death benefit is not taxable in most situations. However, one way a death benefit is taxed is if your estate exceeds the federal estate tax exemption limit, which is $11.2 million in 2018. If you have a large estate, careful asset protection planning is necessary.
AXA Life Insurance Review Conclusion
AXA is one of the top insurance providers in the world. The company does a lot of things really well. If you have questions or would you like to see an illustration of AXA or any of the other top cash value life insurance companies we represent, please give us a call today for a free life insurance consultation with an advanced markets professional.