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Axa puts CI on menu


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


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


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


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


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.”


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

Overall 8/10


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