View more on these topics

Axa puts CI on menu

AXA

Axa Protection Account

Type: Menu-style protection product providing critical-illness cover, life cover, income protection, accident, sickness and unemployment cover, buildings insurance and contents insurance

CRITICAL-ILLNESS COVER

Minimum premium/cover:5 a month, 60 a year/ subject to minimum premium

Maximum cover: No maximum

Conditions covered: Alzheimers disease, aorta graft surgery, aplastic anaemia, bacterial meningitis, benign brain tumour, blindness, cancer, cardiomyopathy, coma, coronary artery by-pass surgery, Creutzfeldt-Jakob Disease, deafness, heart attack, heart valve replacement or repair, HIV/Aids resulting from assault, blood transfusion or occupational duties, kidney failure, liver failure, loss of independent existence, loss of limbs, loss of speech, major organ transplant motor neurone disease, multiple sclerosis, paralysis/paraplegia, Parkinsons disease, pre-senile dementia, progressive supranuclear palsy, rheumatoid arthritis, stroke, third degree burns, childrens cover included

Minimum-maximum ages: 18-64

Options: Joint or single life, life or earlier critical-illness cover, total and permanent disability, payment protection cover, level, increasing or decreasing cover

LIFE COVER

Minimum sum assured/minimum premium: None/3 a month, 36 a year

Minimum-maximum term: One-40 years

Minimum-maximum ages: 18-68

Options: Joint or single life, level, increasing or decreasing cover, five-year renewable option with level or increasing cover only, payment protection cover

INCOME PROTECTION:

Minimum benefit/minimum premium: 100 a month/5 a month or 60 a year, 3 a month or 36 a year for mortgage income protection

Maximum benefit: 11,000 a month, 1,500 a month for mortgage income protection

Minimum-maximum ages: 18-59

Deferred period: Four, eight, 13, 26, 52 or 104 weeks
Definition of disability: Own occupation or activities of daily work

Options: Guaranteed or reviewable rates, payment protection cover, level and increasing cover, level cover only on mortgage income protection

ACCIDENT SICKNESS AND UNEMPLOYMENT COVER

Maximum benefit: 2,000 a month

Benefit payment term: 12 months

Deferred period: 30 or 60 days

Premium: 30 day deferred period Accident sickness and unemployment cover 5.88 for each 100 of cover, accident and sickness cover only 3.23 for each 100 of cover, unemployment cover only 4.52 for every 100 of cover. 60 day deferred period accident, sickness and unemployment cover 5.15 for each 100 of cover, accident and sickness cover only 2.82 for each 100 of cover, unemployment cover only 3.93 for each 100 of cover

Commission: Menu-based depending on type of cover and options chosen

Tel: 0117 989 9000

The Axa protection account is a menu-style protection product offering critical illness cover, life cover, income protection, mortgage income protection, accident, sickness & unemployment cover and household insurances. It is currently available to selected advisers but will be rolled out to the wider IFA market later this year.

Highclere Financial Services partner Alan Lakey regards this as a comprehensive product. He says: “This is the long awaited menu-based debut from Axa, making use of the lamented Swiss Life team. The plan offers guaranteed and reviewable rates for critical illness cover and a fast track tele-underwriting facility.”

Lakey thinks the childrens cover of up to 25,000 at no extra cost is excellent, as is the automatic inclusion of hospitalisation cover. He says: “Premiums are extremely competitive for both guaranteed and reviewable rates. Also, among the literature is a very in-depth adviser underwriting guide.”

Looking at the less attractive features of the product Lakey says: “The critical illness cover is not as comprehensive as some and uses the Association of British Insurers definitions without looking to go beyond them. The plan does not allow cover beyond age 70 for life insurance or critical illness cover. Also, the increasing or indexation option is subject to further health underwriting if one years increase is missed.”

Discussing the possible competitors for the product Lakey suggests Scottish Provident, Scottish Equitable and Liverpool Victoria. He adds: “Skandia will also provide competition for level term products.”

Summing up Lakey says: “This is a welcome addition whose worth will be determined by systems capability, underwriting, competitiveness of rates as well as the all important claims handling. But it is a shame that Axa has not provided one or two superior critical-illness definitions to obtain a quality edge.”

BROKER RATINGS

Suitability to market: Good
Flexibility: Good
Premium rates Good
Adviser remuneration: Good

Overall 8/10

Recommended

14th winning year for fund star Miller

Legg Mason value fund manager Bill Miller has beaten the S&P500 index for an unprecedented 14th consecutive year despite lagging the market by 5.6 per cent as late as the end of October. The $1bn Dublin-domiciled value fund, a mirror of Miller’s US-based $11.8bn value trust, posted growth of 4 per cent in sterling terms […]

Standard Life passes 100bn mark

Standard Life’s funds under management have exceeded 100bn for the first time in its 179 year history.This is up from 50bn in 1996 and 86bn in 2000.Standard Life group chief executive Sandie Crombie says the news is welcome after a difficult year for the insurer.

The Year Ahead

Tipped to do wellStability at F&C Asset Management following its merger with Isis could see renewed interest from investors. It had major upheaval as key managers and analysts left but F&C’s investment team looks ready to benefit from the new structure. However, it must recover from the loss of reputation on its bond and UK […]

Black whole?

As Berkeley Berry Birch’s network subsidiary Berkeley Independent Advisers faces FSA scrutiny over the suitability of the sale of wholeof-life plans, advisers are questioning the future of the oftenmaligned product and it may not be bright. Whole of life is seen as far more complicated than term insurance and many advisers believe it needs a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com