NEW YORK–(BUSINESS WIRE)–Our population as a whole is living longer, and that is something we are
all happy about. Longevity and the security that we all want 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
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
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
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
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.
“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).
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.
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.
John Cline, 212-314-5142