AXA Term Protector & Term Protector Prime Review
AXA Term Protector is a non-participating term life insurance policy that allows you to customise your coverage to your specific needs. It offers coverage for Terminal Illness (TI) and Death, and offers additional riders to enhance your coverage.
Criteria
- Policy entry age between 1 month and 70 for AXA Term Protector and 16 to 70 for AXA Term Protector Prime
- Minimum sum assured of $100k for AXA Term Protector and $2 million for AXA Term Protector Prime
Product Features
Policy Terms
AXA’s Term Protector and Term Protector Prime allows you to select between two options for your coverage term. One option is to be covered up to age 50, 55, 60, 65, 70, 75, or 99.
The second option is to be covered for a period of 5, 10, 15, 20, 25, or 30 years.
Premium Payment Terms & Options
You can opt to pay for your coverage in a single payment or over the course of the policy term.
Protection
Death Benefit & Terminal Illness Benefit
If you pass away or are diagnosed with a terminal illness, AXA Term Protector Prime will pay a cash reward in the amount of S$2 million or more to your dependents, which will be allocated based on your wishes.
Additional Features & Benefits
Guaranteed Renewal
You won’t have to worry about remembering to renew your policy with AXA because it will be renewed automatically when your coverage term ends, without the need for medical check-ups or underwriting.
Please note that this only applies if you have not exceeded the following last renewal age:
Renewal premiums will be calculated based on the Life Assured’s age closest to the renewal date and the existing premium rates at the time of renewal. You may opt not to renew by providing AXA with 30 days written notice before the coverage term ends.
Policy Conversion
With AXA’s Term Protector & Term Protector Prime policy, you have the option to convert it to another Regular Premium Pure Life Protection Basic Policy that is available at the time of conversion, without having to undergo underwriting.
Do note that the Life Assured must be 60 years old or younger at the time of conversion.
Choice of Currency
AXA allows you to select your preferred currency for protection: SGD, USD, EUR, GBP, or AUD, and pay your premiums in that same currency.
Add-On Riders
AXA Term Protector & Term Protector Prime offer various riders for additional coverage.
Early Critical Illness (CI) Payout
If you are diagnosed with an early critical illness, which includes specified Special illnesses and Juvenile conditions, you will be paid in advance to assist you through your tough period.
Note that this is only available for Regular Pay policies.
Advance Critical Illness (CI) Payout
If you are diagnosed with a critical illness, AXA will pay you in advance to assist you through your tough period. An amount equal to the selected sum assured less unpaid premiums will be payable.
If a claim under this rider is accepted:
- Your policy will automatically end if the amount payable under this rider is the same as the amount assured under your Basic Policy;
- The sum assured of your Basic Policy will be lowered by an amount equal to the sum payable on this rider if it is less than the sum assured of your Basic Policy. Your Policy will continue in effect, and the premiums due will be modified in accordance with the decreased amount assured of your Basic Policy, and is subjected to AXA’s minimum premium and sum assured requirements as of the date of issue of your Basic Policy.
The following CI’s are covered by AXA:
You will be happy to know that this rider will be automatically renewed with your Basic Policy.
Under this rider, 10% of the sum assured will be payable if the Life Assured is diagnosed with Angioplasty & Other Invasive Treatment for Coronary Artery. Note that the maximum amount payable is $25k, less any unpaid premiums. Furthermore, 25% of the sum assured, less any unpaid premiums will be payable if the Life Assured is diagnosed with a CI before 1 years old.
$3 million is the maximum amount payable on the Life Assured if diagnosed with any CI, including other policies offered by AXA and other insurance providers.
The following exclusions apply to this rider, and the CI benefit is not payable if the CI:
- Occurs as a result of a pre-existing condition that was not reported to AXA in writing prior to the issue date of this rider or the previous date of reinstatement, whichever is later;
- Is a Major Cancer, Other Serious Coronary Artery Disease, or a Heart Attack of Specified Severity, and if the Life Assured has been diagnosed with the CI within 90 days of the issue date or the previous reinstatement date of the policy, whichever is later;
- Is a severe illness where Coronary Artery By-pass Surgery, Open Chest Surgery to Aorta, Open Chest Heart Valve Surgery and/or Angioplasty and Other Invasive Treatment for Coronary Artery, has been recommended by an Official Medical Practitioner, and that the Life Assured has been diagnosed with the CI within 90 days of the issue date or the previous reinstatement date of the policy, whichever is later;
- Comes directly or indirectly from any sane or crazy attempt at suicide or self-inflicted injury
- Develops directly or indirectly from Acquired Immunodeficiency Syndrome (AIDS), AIDS-related complex, or infection with the Human Immunodeficiency Virus (HIV), except as specified in the categorisation of AIDS as a Critical Illness; or
- Is caused by the use of medicines not prescribed by an Official Medical Practitioner, either directly or indirectly.
Note that the premium rates under this rider are not guaranteed and that AXA reserves the right to alter the prices at any time. If rates change, you will be informed with 1 month’s written noticed delivery by regular mail to your last known address.
If any of the following events occur, your rider will end, whichever comes first:
- your Basic Policy terminates;
- the expiry date of your coverage, unless renewed;
- payment of the Additional Benefit, unless the payment is the result of a diagnosis of Angioplasty and Other Invasive Treatment for Coronary Artery;
- AXA doesn’t receive your premium after the grace period
- acceptance of your rider termination application by AXA; or
- any other circumstance resulting in termination as specified in this rider.
Advance Total and Permanent Disability (TPD) Payout
With this rider, an amount equal to the selected sum assured, less any unpaid premiums will be payable if the Life Assured experiences TPD before 70 years old.
If a claim under this rider is accepted:
- if the amount due under this rider equals the amount insured under your Basic Policy, your Policy will instantly end; or
- the sum assured of your Basic Policy will be lowered by an amount equal to the sum payable on this rider if it is less than the sum assured of your Basic Policy. Your Policy will continue in effect, and the premiums due will be modified in accordance with the decreased amount assured of your Basic Policy, and is subjected to AXA’s minimum premium and sum assured requirements as of the date of issue of your Basic Policy.
TPD refers to any of the following scenarios:
TPD will be considered at all ages if the Life Assured has any of the following conditions:
- Complete blindness in both eyes; or
- Physical or functional loss of any 2 limbs; or
- Complete loss of vision in 1 eye, accompanied by bodily loss or loss of function of any 1 limb.
You’ll be relieved to learn that this rider will also be automatically renewed along with your Basic Policy.
Under this rider, 25% of the sum assured, less any unpaid premiums will be payable if the Life Assured develops TPD before turning 1.
The maximum payable on the Life Assured are as follows, and include any additional policies issued by AXA and other insurance providers:
- $6 million if the Life Assured is a Singaporean, Permanent Resident, or bearer of a valid pass; and
- $4 million if the Life Assured is not any of the above.
The following exclusions apply to this rider, and the TPD benefit is not payable if the TPD:
- occurs as a result of a pre-existing condition that was not reported to AXA in writing prior to the issue date of this rider or the previous date of reinstatement, whichever is later;
- has existed for fewer than 6 months in a row;
- comes directly or indirectly from any sane or crazy attempt at suicide or self-inflicted injury
- was caused by any aerial activity other than flying as a passenger or crew member on a licensed international airline on a regularly scheduled commercial trip;
- was as a result of service in the military, navy, air force, or police during periods of declared or undeclared conflict, or
- occurs as a result of a behaviour or medical condition that AXA excluded and supported in the Policy.
The premium rates under this rider are guaranteed for the duration of the policy term.
If any of the following events occur, your rider will end, whichever comes first:
- your Basic Policy terminates;
- the expiry date of your coverage, unless renewed;
- payment of the Additional Benefit
- the Policy Anniversary closest to the Life Assured’s 70th birthday;
- AXA doesn’t receive your premium after the grace period
- acceptance of your rider termination application by AXA; or
- any other circumstance resulting in termination as specified in this rider.
Disability Cash Benefit
AXA will continue to assist you with an annual cash payment if you become permanently disabled.
Critical Illness Plus Benefit
If you are diagnosed with a critical illness, you will get a lump sum payout without impacting your primary plan’s other benefits.
Personal Accident Benefit
In the case of an accident-related injury or death, you will be compensated without impacting the other benefits of your primary plan.
Guaranteed Survival Payout
If you outlast the policy’s term, you will be repaid with the current sum insured. This rider does not require medical underwriting, and its issue is guaranteed. Only offered for Term-to-Age 99.
Critical Illness PremiumEraser (Prime only)
Your future premiums will be waived in the case of a severe disease diagnosis.
Premium Waiver (Prime only)
Your future premiums will be waived if you are diagnosed with severe disease at an early to the advanced stage. Furthermore, your payments for the next 6 months will be waived if you suffer an unintentional loss of income.
Payer PremiumEraser (Prime only)
Your future payments will be cancelled and your loved one will remain protected in the case of permanent disability, critical illness from the early stages to the advanced stages, or the payer’s death. You can also select to be protected in the event of an unexpected loss of income, in which case your premiums for the next 6 months will be waived.
My Take on AXA’s Term Protector
AXA’s Term Protector is the plan to get if you’re in the market for renewable term insurance. Compared to other renewable plans, it offers the widest range of policy terms with 6 options to choose from.
It’s also one of the few term plans – if not, the only term plan – that allows you to pay for your term plan with a single premium if your policy term is 5, 10, or 15-years. So, if you have the cash on hand and are looking to quickly pay off your premiums first, this plan would be great for you.
Unfortunately, the policy terms for their term-to-age plans (aka level term plans) leave much to be desired. If you’re looking for more flexibility in this regard and renewability is not a dealbreaker, you’re better off considering options like Aviva’s MyProtector-Term Plan II.
Worried that the protection you have set aside for your loved ones would be affected by inflation? AXA’s Term Protector has got you covered with their Indexation Option.
They’re one of the only insurers that allow you to increase your sum assured, with the other option being Prudential’s PRUActive Term which is much more expensive. So, if you’re looking to beat inflation, this is the plan to get.
Rarely do you see a term plan offering coverage up to age 99 and above – but this plan does. Coupled with its renewable feature, if you’re unsure until what age you require coverage, consider getting AXA’s Term Protector.
With this, you get to enjoy the ability to renew your coverage whenever you need it up until you’re 99, but have the option to stop it anytime if you don’t need it.
Of course, with term plans, we can’t avoid talking about affordability since most plans offer the same basic coverage against death and terminal illness. Comparing the prices of term plans that offer coverage up to ages 99 and above, AXA Term Protector is the second most affordable plan to get.
| Aviva My Protector Term Plan II | NTUC Income TermLife Solitaire | Great Eastern GREAT Term | AXA Term Protector | |
| Total Premiums Paid | 21,400 | 29,320 | 26,880 | 24,400 |
The above premiums are generated based on a non-smoking, 30-year-old male who opts to be insured for $500K. The policy and premium term for all premiums are 40 years.
As you can see, your total premiums paid for AXA Term Protector is only $24,400, or $610 in annual premiums!
When it comes to choosing the right insurance plan for you and your loved ones, there are many factors to consider if you want to ensure that your loved ones are sufficiently protected.
It can be overwhelming, but fret not!
Our knowledgeable financial advisors will speak with you to understand your priorities and motivations, before conducting a comprehensive and objective comparison of the plans available to recommend the best one for you. Speak to one of them today!
References
https://www.axa.com.sg/life-insurance/axa-term-protector#product-promotions
source https://singaporefinancialplanners.com/blog/axa-term-protector-prime-review/
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