June 14, 2016
NEW YORK – Our population as a whole is living longer, and that’s something we’re all happy about. Longevity and the security that we all want also 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.
“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.
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.
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.