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AXA Equitable Life Insurance Review – Forbes Advisor

  • Term life
  • Indexed universal life
  • Variable Universal Life

Term life insurance from AXA Equitable

Term life insurance is a good option if you are looking for life insurance covering a specific period of life. For example, suppose you want enough coverage to cover your family’s income replacement if you die. In this case, a term life insurance policy whose duration covers the rest of your working years is an option. After the tier term expires (eg 10 or 20 years), you can renew the policy, but you should be prepared for a significant increase in premiums.

Term life insurance does not create cash value and therefore is often the cheapest type of life insurance to buy.

Equitable Life offers a term life insurance product called Term Series 160. This product is offered in options of one, 10, 15 and 20 years and an annual renewable term insurance policy. Depending on the length of term chosen, it is offered to buyers between the ages of 18 and 99 with a minimum sum insured of $500,000.

Equitable’s TermOne policy is specifically for one year only and has a minimum face amount of $25,000.

Term Series (except TermOne) can be converted to a permanent life insurance policy, including a conversion credit to reduce the first permanent policy premium.

Indexed universal life insurance from AXA Equitable

If you’re looking for a death benefit that will rise (or fall) with an index, like the S&P 500, indexed universal life (IUL) is an option. This type of life insurance ties your cash value to an index. It includes participation rates, caps and floors that can prevent the policy from the largest gains and losses.

IULs also offer the ability to vary premiums and death benefits and take tax-free withdrawals or loans against the cash value. However, keep in mind that if your cash value becomes too low to cover expenses and policy fees, the IUL policy could expire.

BrightLife 155 Growth Series is Equitable Life’s indexed universal life insurance product and gives you the choice of four indexed options linked to the S&P 500, Russell 2000 and MSCI EAFE. If you are interested in a low risk cash value, you can select the Guaranteed Interest Account. This product is available to purchasers between the ages of 18 and 85 with a minimum face amount of $50,000 and comes with a built-in non-lapse guarantee. Minimum and maximum ages may vary by policy amount and health class.

BrightLife Growth guarantees a participation rate of at least 100%. This rate determines the percentage of the index gain you will earn. The growth cap rate is the upper limit of the rate of return you are eligible for and ranges from 3% to 11.5%, depending on the indexed options chosen. On the other side of this boundary is the 0% bearish floor, which limits losses.

AXA Equitable also offers a BrightLife 159 Growth Series similar to Series 155, but without segment fees, higher face amounts and other improvements.

Variable universal life insurance from AXA Equitable

Variable universal life (VUL) insurance has a variety of features, including cash value investments with sub-account choices, as well as flexibility in premium amounts, payment frequency, and death benefit options. This permanent life insurance option is intended to stay in place throughout your lifetime.

Variable universal life insurance includes the ability to borrow tax-free or withdraw from your cash value, but can expire if your cash value gets too low to cover policy expenses and fees. Variable universal policies usually include significant fees.

Equitable Max Advantage is a variable universal life insurance product that does not require labs or medical tests and is available for people aged 20 to 55. The process of obtaining this policy takes 48 hours from start to finish. The minimum insured amounts are $100,000 and the maximum insured amounts are $2,000,000. For cash value accumulation, there is a long list of over 80 sub-accounts to choose from, including index, asset allocation, equity and fixed income portfolios. Unlike other Equitable VUL options, this product does not include the ability to vary premiums.

LCV Heritage is a VUL product including a non-lapse guarantee that prevents the product from lapse if the cash value is insufficient. It also includes a paid-up death benefit guarantee that ensures the policy will remain in force regardless of investment performance. It comes with over 80 sub-account choices for cash value investments. If you choose a guaranteed interest account, your rate will be at least 1.5% annually.

For more variable universal life insurance options, AXA Equitable also offers the VUL Optimizer and VUL Max Optimizer and a survival product called LCV survival.

Here’s a look at Equitable term life insurance rates for different ages and amounts.

AXA Equitable Term 20 Series 160 life insurance rates by age and amount

AXA Fair Term 20 Series 160 life insurance rates vs. competitors

AXA Equitable’s term life insurance rates are competitive with other major life insurance companies.

Related: The best life insurance companies

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