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.