This, for me, just falls into the “go figure” category. Two of the best companies from a product and underwriting stance, MONY and US Financial, were purchased within the last year by AXA Equitable. For a while nothing changed and then snap (my imitation of Pacman), MONY is gone. And now snap again. By mid July US Financial will no longer exist.
US Financial was the innovative “clinical underwriting” company that shook everything up by announcing to the world that clients should be underwritten based on their own merit and not just thrown into the same bucket as say, every other person who has had a heart attack or every other person who had type 1 diabetes or type 2 diabetes. They were the company that made compliance and control the issue rather than the disease. They were the company that rewarded people for doing the right things. Well, the AXA has fallen on that kind of logical thinking and underwriting.
AXA Equitable. The 800 pound gorilla smashes another perfectly good company.
MONY was a great company in their own right. While they weren’t exactly clinical underwriters, they were somewhat disposed to fits of common sense. What a breath of fresh air that is, or was, in the life insurance business. They weren’t afraid to make the right decision even when if went just a little askew of what reinsurance companies would like to see. They were a great company for private pilots.
Again, the 800 pound gorilla does it’s job. Smash the competition. If you can’t beat them with products and rates, buy them and close them down.
It’s frustrating for me as an independent agent for a couple of reasons. First, two good choices for my clients are gone. Second, AXA Equitable doesn’t have anything worth a flip to offer to fill the void. Truth is their products and their prices kind of suck. That’s why that stupid gorilla doesn’t talk about life insurance.
My prayer, for the good of all life insurance clients out there, is that some other company will see that void and fill it and then stand up to any companies who try to buy them out of business.
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.