The Equitable Life Assurance Society of the United States was founded in 1859. In 1991, Equitable Life Assurance Society was acquired by French insurer AXA, and in 2004, the company was renamed AXA Equitable Life Insurance Company. In early 2020, Equitable diverged from AXA and officially rebranded as Equitable.
For many decades, Equitable has been considered a pillar of the life insurance industry in the United States. The company offers a variety of insurance products and serves over 2.8 million customers nationwide. Keep reading to learn about Equitable life insurance, the policies it offers and its customer ratings and reviews.
AXA Equitable Life insurance
Equitable Insurance offers term life insurance and several permanent life insurance policies. Whether you are looking to protect your family members, invest your money or generate tax-free income for retirement, Equitable has a policy that can help you achieve your goals. Equitable also offers a few online resources designed to help prospective customers determine which policy is best for their needs.
Types of life insurance policies offered
Equitable’s life insurance policies are fairly robust, with five policies to choose from. Some of the policies, like survivorship life insurance, can be difficult to find from other insurance providers. However, one thing to note is that Equitable does not offer a whole life insurance product at this time, which is typically offered by most life insurance providers. Here are the life insurance policies available through Equitable:
Term life insurance
Term life insurance is a good option for young families and healthy individuals who are looking for affordable coverage. The death benefit can be used by your survivors for things like paying off a mortgage, covering end of life expenses or paying college tuition. Term policies have the cheapest premiums, but only offer temporary coverage.
Equitable’s term life insurance policies are available in 1-, 10-, 15- or 20-year term lengths. Term life insurance does not build cash value, but there are level premiums and a guaranteed death benefit. When the term is up, policyholders have the option to convert their policy into permanent coverage for the rest of their life.
Indexed universal life insurance
Indexed universal life insurance is a good choice for people who want to use their life insurance policy as an investment vehicle. A portion of the monthly premium goes towards the death benefit, and another portion gets invested into an S&P 500 index fund. The portfolio builds tax-deferred cash value, up to a certain amount, based on market performance.
Equitable’s indexed universal life insurance policies are fairly standard. They include lifetime coverage, a guaranteed death benefit and flexible premiums. Policyholders have the option to withdraw or borrow money against their policy to use for income or to fund large purchases.
Variable universal life insurance
Variable universal life insurance is similar to indexed universal, and it can be a good option for people who want to invest with their life insurance. The main difference between the two policies is that with variable universal life insurance, a portion of the premium gets invested in a mutual fund.
Equitable’s variable universal life insurance policies have tax-deferred cash value that can be used as supplementary income during retirement. Policies include a guaranteed death benefit and flexible premiums. Equitable sells two unique variable universal policies, VUL Optimizer and VUL Legacy, for people who want additional investment options.
Survivorship life insurance
Survivorship life insurance from Equitable covers two people, usually spouses, on the same policy. When both insured people have passed away, their beneficiary receives the death benefit. This policy is often used for estate planning and inheritance purposes. Equitable also offers a VUL Survivorship policy, which has a tax-deferred cash value component that can be used as income during retirement.
Long-term care insurance
Equitable offers long-term care insurance which can be used to pay for long-term care costs, like nursing homes, hospice care and home health aides. If the policyholder never needs to use the insurance, their beneficiaries will receive the money from the policy as a death benefit.
Reasons why AXA Equitable is a great option
Equitable Insurance is a great option for many people who are in the market for life insurance. The company offers five different policies that can meet a variety of needs, whether it is extra income during retirement, paying for end-of-life care or leaving an inheritance to grandchildren.
One of the downsides to Equitable is that it does not offer whole life insurance, which is a popular policy. In addition, the company does not offer many riders. People who are looking for whole life insurance or want to customize their coverage with specific riders should consider a different insurance provider.
AXA Equitable insurance ratings, reviews, customer satisfaction and complaints
|Better Business Bureau (BBB)||A+|
|NAIC Company Complaint Index||.06 (fewer than average complaints)|
Equitable gets mixed ratings across the board. The company was rated 733 out of 1,000 for overall customer satisfaction in J.D. Power’s 2020 U.S. Life Insurance Study, which is below the industry average rating of 763 out of 1,000.
The BBB gives Equitable an A+ rating, but customer ratings say otherwise. Equitable’s average customer rating is 1.29 out of 5 stars based on 24 reviews. There have been 24 complaints closed over the last year, with many customers voicing concerns around poor customer service and claims handling.
However, the National Association of Insurance Commissioners’ (NAIC) Company Complaint Index found that Equitable had fewer than average complaints, based on a total of 28 complaints. Lastly, Equitable has excellent financial strength with an ‘A’ rating from AM Best.
Frequently asked questions
What is the best life insurance company?
The best life insurance company depends on the type of policy you are looking for, the amount of coverage you need, your age and your health. Before choosing a life insurance company, take some time to consider the factors that matter most to you and your family.
How much life insurance do I need?
The amount of life insurance you need will depend on what you intend to use the policy for. But as a general rule of thumb, you should have enough life insurance coverage to support your family members in the event of your death. Write down your long-term financial obligations, like a mortgage or college tuition payments, and then deduct the value of your assets, like your home. The value leftover should help you decide how much coverage is appropriate for your family.
What is the difference between term and whole life insurance?
There are several key differences between term life insurance and whole life insurance. First, term life insurance offers coverage for a specific length of time, whereas whole life insurance offers lifetime coverage. Whole life insurance builds cash value, and term life insurance does not. Because whole life insurance offers more coverage than term life insurance, the premiums are usually more expensive.