Saving You Money For Life

Finally insurance companies are starting to wake up to the fact that preventative measures, though they cost money, can often save three and four times as much in medical costs later. It makes sense, right? Covering the cost of treating a disease costs far more than covering the cost of an annual checkup or monthly. In addition to covering wellness visits, insurance companies are starting to offer incentives for their customers who got out of their way to get healthier. It is increasingly more common for customers to be offered incentives for losing weight.

Obesity puts you at risk for a number of chronic health conditions that cost insurance companies a mint in prescription drug costs, emergency visits, check-ups and maintenance visits and trips to specialists. Some of these health problems include type II Diabetes and heart disease as well as a number of other conditions that complicate and cause co-occurring disorders.

Tom Haney is a wellness administrator at Independent Health, a health solutions company. He says, “As we begin to understand that there is a cause and effect relationship between risk and cost we’re beginning to narrow down what those risks are. And by risk I mean when people are exposed to the possibility of becoming ill over time it means we are looking at future costs. It means in this country something like 70 percent of chronic disease is avoidable.”

Now, in addition to the health benefits, there’s another incentive to lose weight!

Posted in Uncategorized | | 1 Comment »

Following is a release that just came out from AXA Equitable. This new rider is suppose to offset liquidity issues for wealthy individuals and corporations.

“Sometimes liquidity is an issue when wealthy individuals or businesses require substantial amounts of life insurance protection. That’s why AXA Equitable introduced today in approved jurisdictions a new on its Athena Universal Life (SM) Death Benefit product (Athena UL-DB(SM) CVPlus Rider). Whether it’s protecting a family’s financial future or a successful business, the CVPlus Rider reduces the need to tie up other assets or obtain letters of credit as collateral when financing life insurance. The announcement was made by Claude Methot, Senior Vice President and Chief Product Officer of AXA Equitable.

Advanced Planning for Individuals and Corporations “The financial protection life insurance offers can be critical to sustain a thriving business or protect a wealthy person’s estate but sometimes liquidity constraints delay action to protect,” said Mr. Methot. “Our new CVPlus Rider makes it easier to act, by offering a flexible alternative for clients who are reluctant to move assets for purposes of posting collateral in premium financing arrangements.” Using the CVPlus Rider, a client may get upwards of 95% of required collateral with the policy alone, minimizing out-of-pocket collateral and often obtaining more favorable financing terms.

The CVPlus Rider may also be beneficial in corporate-owned business planning. “By increasing the policy’s Cash Surrender Value,” said Mr. Methot, “the CVPlus Rider can offset the impact of the premium outlay on a corporation’s books.”

How the CVPlus Rider Works

AXA Equitable Athena UL-DB policies with the CVPlus Rider have higher early Cash Surrender Value, if the policy is fully surrendered, than policies without it. For a one-time charge of $250, there are two different ways that the CVPlus Rider increases the policy’s Cash Surrender Value:

1. For the first eight (8) policy years, surrender charges will be reduced by a specified percentage as indicated in below:

2. And refunding a portion of the cumulative premium charges deducted during the first three (3) policy years.

The CVPlus Rider must be elected at issue of an Athena Universal Life (SM) Death Benefit policy with a minimum face amount of $1,000,000 and $50,000 in annualized premium. Issue ages vary by underwriting class and tobacco user status and range between ages 0-75. Face amount increases are not permitted while the rider is in force.

* The reduction in surrender charge does not apply to any proportionate surrender charges resulting from a face amount decrease. Also, the enhanced cash value is not available if the policy is being exchanged or replaced with another life insurance policy or annuity contract on the insured, including (but not limited to) 1035 exchanges, except for policies issued in Florida.”

Posted in Uncategorized | | No Comments »