Axa has released a comprehensive update to its occupational disability insurance. A major stumbling block in the student classroom has been removed. Expert Tobias Bierl also notes the Cologne-based company’s efforts to slowly catch up to the top of the market.
Tobias Bierl is the expert in occupational disability insurance at DAS INVESTMENT. | Photo: Photo: Finanzberatung Bierl GmbH / Jessica Rollinger with Canva
In the course of the turn of the year 2023 to 2024, there were also reports from the Axa has released a comprehensive update to occupational disability insurance. In our opinion, this was sorely necessary. The example of other large insurers was followed – a young and committed project team is exploring the market, not reinventing the wheel, but rather eliminating weaknesses compared to the competition.
`,
width: 970,
height: 250,
callback: () => {
adProcessor.makeResponsive(holderId, holderEl.offsetWidth);
$(‘#’ + wrapperId).addClass(‘billboard_article_wrapper–loaded’);
window.billboardGrowFx.init(wrapperId);
// colorize when in takeover mode
window.waitTakeoverMajor.then(isTakeoverOn => {
if (isTakeoverOn) {
const filter = window.takeoverHandler.demoFilter;
$(‘#’ + holderId).css(‘filter’, filter);
}
});
}
});
});
}
}, 1000); // timeout is for paid articles to start after content unlocking
} else {
let adId;
if (window.innerWidth {
$(‘#’ + wrapperId).addClass(‘billboard_article_wrapper–loaded’);
window.waitDcNonCritical.then(() => {
window.billboardGrowFx.init(wrapperId);
});
},
onNoBanner: () => {
devlog(‘NO BANNER FOR BILLBOARD INSIDE CONTENT (‘ + adId + ‘)’, ‘ads’);
}
};
}
The Axa children/student occupational disability insurance should have been an absolute red flag for the interested insurance broker, because there was a passage in the small print that was extremely dangerous for customers. For the people of Cologne there was an obligation to register later when starting a career. This reduced the positive reason for completing a student BU early to absurdity. The big advantage of timely insurance is the fact that, on the one hand, you can freeze your health and, on the other hand, you will never be in a worse position due to your professional attitude.
There is no longer any late registration requirement for the student BU
But the bad foul of the later obligation to register (if this was not done, the contract would have been terminated by Axa at the latest at the age of 25) has been removed from the contract conditions. This is an important signal, especially for the insurer’s exclusivity, because unlike an insurance broker, you cannot easily switch to another provider.
The interesting thing is that the student BU can be completed from the age of eight. This is all the more exciting because there is currently only one provider on the market that offers genuine and independent occupational disability insurance for those under ten years of age (LV 1871 from the age of six, but at least school enrollment). A first step towards normality has been taken, even if the Axa student BU does not yet meet all of our criteria.
Unfortunately, you remain trapped forever in the contribution dynamic of three percent; there is no right to a later increase.
Increase and improvement in the increase options
Flexibility for later increases plays an immensely important role in our advice on occupational disability insurance. After all, you only take out BU insurance once in your life, which then accompanies you throughout your professional life. Unfortunately, until now there were relatively outdated regulations from Axa, which have now finally been updated.
The most important innovation is certainly that there is a renewed risk assessment and not just a health assessment
is waived in the subsequent insurance. At first glance, not a big difference, but only at first glance. If an insurer “only” waives a new health examination, it can ask the insured customer about the following characteristics:
● Current professional activity
● Smoking behavior
● Dangerous hobbies
● BMI (height & weight)
● Planned stays abroad
This could result in significantly higher contributions. This passage has now finally been changed and adapted to the top of the market. This is very good news for the customer.
Further improvements
REGISTER NOW
● Instead of six months, it is now possible to make an increase within twelve months. This is extremely useful and significant, especially for us as we send an annual check to our customers once a year.
● The event-independent increase can be claimed up to the age of 40 and no longer only up to the age of 35.
● Receiving the power of attorney is an additional incentive for an increase.
● In addition, there is the possibility of raising multiple times within a year, provided there are different triggers for each.
● The maximum possible increase has been increased from 2,500 to 3,000 euros.
The last innovation in particular was sorely necessary, because the 2,500 euro maximum increase option was something of a relic from the old days. Other market participants were and are much further ahead of Axa; just think of the career guarantee, which for some companies provides for an increase of up to 7,400 euros.
Immediate pension extended in the event of a serious illness
Regardless of possible occupational disability, Axa also pays an immediate pension of up to 15 monthly pensions from a certain stage of cancer, heart attack or stroke. From a marketing point of view, this is good, but in most cases there is likely to be a conditional occupational disability. Quietly and secretly there is also a deterioration. Previously, this was available for a 24-month pension if there was hearing loss, blindness or constant need for a wheelchair. This has now been adjusted to 15 months.
No more simultaneous BU application when drawing on the incapacity for work clause
Similar to the Allianz update, Axa is now waiving the previously very customer-unfriendly rule that when the incapacity for work clause is invoked, an application for benefits for occupational disability must also be submitted at the same time. This means that the supposedly simple advantage has so far been wiped out. The service period of up to 24 months remains the same, the market peak now even allows for 36 months.
Source: Financial advice Bierl / AXA
Contribution reductions in some tariffs
Along with the major update, the pricing has also been adjusted. How could it be otherwise – many academic professions are now rated even more favorably, but manual professions also benefit from a reduction in contributions. That is laudable. The price war is increasing even more and margins are likely to fall in biometrics.
But we insurance intermediaries are certainly also to blame for this, as we mostly sell based on price. This was accompanied by a new price offensive for civil servants and teachers. This is done via the subsidiary DBV (German civil servant insurer). In recent years, competitors such as Bayerische and Allianz have certainly lost a lot of ground in terms of price-performance ratio.
The conclusion
Axa has closed some of the BU insurance’s open construction sites. At many large insurers, the wheels of change are running a little slower here, but we are certainly taking note of the update positively. Unfortunately, the current further development of the product is not enough to get you into the narrowest circle of our main recommendations, despite these positive approaches and very consumer-friendly health issues compared to the market. But the Axa will certainly make it onto our extended “watch list”.
2024-02-08 17:36:03
#AXA #gains #connection #insurance #market #INVESTMENT
