AXA life insurance
“AXA” is a global life insurance company that is located in Paris, France. This company provides life, health, medical and other forms of insurance and operates in Western Europe, North America, Middle East and Asia Pacific. Last year Fortune Global 500 listed “AXA” group as the 14th largest company in the world based on annual revenue.
The main providers of “AXA” insurance in United Kingdom are “AXA Sun Life Direct” and “AXA Insurance”. Life insurance to UK residents is given without medical questions. What is more, no details about the health of the individual are required to be provided. “AXA” life insurance also allows the individual to attach terminal illness insurance to his life insurance contract. Although, the premium will be higher with combined life and terminal illness insurance contract, a lump sum will be paid not only in the case of death but also on the diagnosis of the critical illness. In order to get a terminal illness benefit two criteria have to be met: the illness can’t be cured and it is expected to lead the insured person to death within the period of 12 months.
The factors determining premium
The monthly premium for life insurance in “AXA” depends on 5 main factors: amount of lump sum chosen, the length of the term, the age of the individual, gender and smoking habits. All other factors being equal males usually pay higher premiums because according to statistics they tend to die more often because of bad living habits, alcohol problems and indifference to their health issues.
Like most leading insurance companies “AXA” allows individuals to choose between level, decreasing and increasing insurance covers, between guaranteed and reviewable premiums and between whole of life and fixed term life insurance contracts. The whole of life insurance plan lasts for all remaining life of the insured person calculating from the day the contract was signed. A term life insurance will only last a specified amount of time and this term is stated in the contract. Usually this term coincides with the maturity of the children or the termination of the loan. However, it is important to state that not all people can choose between these two types of insurances. Whole of life insurance is designed for people who are aged between 50 and 85. In comparison, fixed term life insurance is designed for people who are between 18 and 59.
Choosing between the alternatives
It is obvious that age is the factor determining for which of the two alternatives the person is eligible. On the other hand, a person aged between 50 and 59 may choose between these two insurance contracts. Before making a decision it is important to decide what would be the purpose of the lump sum in case of death. If the money is expected to cover funeral costs a whole life insurance is a better option. However, if the money should go to relatives and family members to help them avoid financial distress or repay the mortgage on their own, a fixed term life insurance is recommended. The cover period of the fixed term life insurance is much shorter than in the case of whole life insurance and as a result a lump sum paid for fixed term life insurance is much bigger.