AXA encourages advisers to sell insurance before prices rise

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AXA New Zealand increase insurance sales before tax changes boost the cost of life insurance from July.

Tuesday, February 9th 2010, 3:07PM

by Paul McBeth

Marketing general manager Mark Ennis told advisers at a Wellington roadshow that from February 15 AXA will introduce a new pricing schedule targeted at 45 to 60 year-olds to take advantage of the tax grandparenting rules when term life business incurs higher tax costs from July 1. The discount will be as much as 5.8% for stepped term business lodged before June 30.

Advisers will also benefit from the push with upfront commissions rising from an averagenof 185% to 200%.

The push comes as AXA introduces its first round of quarterly enhancements this year across its risk products.

It has amended its qualifying period on its income protection that means the period will not reset if someone returns to work for several days, though the days worked will be added to the period. A similar change has been brought in for its business expenses product as well.

Also under income production, AXA has introduced cover while unemployed, to provide coverage if a person is out of work for more than three months, as well as changing the definition of what the average weekly income is for agreed value partial claims.

AXA's life product has introduced a funeral expenses benefit of up $15,000 up to the maximum sum insured, and a financial planning benefit of up to $1,500. The company has also removed the terminal illness benefit limit of $2 million.

Total and permanent disability insurance has had the introduction of a domestic duties benefit, which covers those people whose occupation is unpaid domestic work, and a new cognitive impairment definition. AXA removed the cessation of benefit clause and has brought in a new definition to allow immediate payment of a claim under certain circumstances.

Trauma products have seen a new out of hospital cardiac arrest condition brought in, as well as an adult insulin diabetes condition to a maximum of $25,000. It also has had a chronic lung disease condition added.

Paul is a staff writer for Good Returns based in Wellington.

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