Martin Lee @ Sg
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AXA Term Protector Launch

AXA Life has launched a new term plan, their AXA Term Protector.

This replaces their previous term plan, Future Protector. The main difference between this term plan and their previous term plan is that the premiums are priced more competitively.

If you have a pending application of FutureProtector, you have the option of changing into the new product.

In recent times, we have seen many companies revising the premiums of their term plans in order to be more competitive.

NTUC used to lead the low cost term insurance market. Aviva started the ball rolling by launching their MyProtector series, which was priced very competitively.

We also had Tokio Marine Life’s Towards My Peace of Mind and Towards My Well Being, and Manulife’s Manuterm enhancement.

Assuming the companies’ actuarial modelling on mortality rate didn’t change, the only way premiums can be lowered is to reduce the distribution cost.

This shows that market forces can dictate the evolution of certain products. If an insurer’s product is expensive and nobody buys their product, they will have to make changes in order to capture or even retain their market share.

Overall, this trend can only be good for consumers.

The only reason why some crappy products continue to exist on the market is that people are still buying them. If everyone votes with their feet, companies will have no choice but to revise/remove their non-performing product.

Leave a Comment:

The Watchman says 9 years ago

I agree…NOt only that these par products are designed to be complicated so that they have to be SOLD. This is where the customers can be confused and conned into buying. Half truths and three quarter lies will surely have the customers dizzy and the salesmen just go for the kill.
It doesn’t matter how complicated the product, the salesmen have a way if given higher commission, that is all. Commission emboldens the salesmen and it works like magic.
Term is a plain vanilla product. The consumers can BUY, no need for the dishonest middleman to explain or to sell.

Nuts says 9 years ago

Par insurance products like wholelife and endowments are still the biggest profit-margin generator for insurance companies. Those companies that are reducing their premiums for term life are those with very little market share in wholelife or endowment.

Companies with big market share of par products are still focusing on pushing crap products with low yields, less than inflation rate. Some of these companies have neglected their term plans and don’t bother to review their premium rates. No money to be made and cannot cover 12-month bonuses and European incentive trips.

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