AXA Life Treasure II Review [2021]: Why You Should Consider!
Singapore Financial Planners Log

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AXA Life Treasure (II) Review

Articles written are independent opinions, and are not affiliated/sponsored unless specifically mentioned.

axa life treasure review

The AXA Life Treasure(II) is a whole life insurance that besides offering basic protection for death, terminal illness, and total permanent disability.

It also allows for customisation and the flexibility to multiply the sum assured and enhancement of critical illness coverage, as well as with the option of several other optional riders.

As a participating policy, it accumulates cash value in the form of guaranteed and non-guaranteed bonuses.

Criteria

  • Minimum sum assured of $25k.
  • Entry Age
    • Life Assured: 1 month to 65 years old.
    • Policyholder: 18 to 99 years old.

 

Basic Product Features

Coverage Duration

The AXA Life Treasure (II) offers you coverage of up to age 99. A maturity benefit will be paid out to you if you live past the age of 99.

Premium Payment Terms

The AXA Life Treasure (II) is a regular premium policy with flexible payment term options – 10, 15, 20, 25, and 30 years.

Your final premium amount is determined by factors such as age, gender, smokers status, sum assured, policy type, and length of premium period.

Protection

Maturity Benefit

To be eligible for the maturity benefit, the following criteria need to be met:

  • The life assured survives past the age of 99.
  • The policy remains active and no death benefit has been paid out. (including death benefit advancement due to a Terminal Illness (TI), Total Permanent Disability (TPD), and if applicable a Critical Illness (CI)
  • Less any amounts owed to AXA.

 

Death Benefit

Upon the death of the insured, the sum assured plus any accumulated bonuses will be paid out after deduction of any payables.

The policy will automatically be terminated once the death benefit has been paid out.

Total and Permanent Disability (TPD) Benefit

Upon the diagnosis with total and permanent disability, on or before the Policy Anniversary nearest to the insured’s 80th birthday, the sum assured plus any accumulated bonuses will be paid out after deduction of any payables.

The maximum disability benefit inclusive of all other policies issued by all insurance companies is as per below:

  • If the insured is a Singapore Citizen, Permanent Resident, or holder of a valid pass: SGD $6 million.
  • If the insured is not a Singapore Citizen, Permanent Resident, or holder of a valid pass: SGD $4 million.
  • If the insured is below the age of 16 years old: SGD $1 million.

 

TPD benefit will reduce the basic sum assured due to it being an accelerated payment of the death benefit.

The policy will automatically be terminated if the TPD benefit is the same as the basic sum assured.

In order to qualify for the TPD benefit payout, the life insured must meet the following requirements:

If the insured encounters the following between age 16 and less than age 65.

 

Definition A

 

Disablement as a result of an accident, sickness, or disease, certified permanent by a medical practitioner appointed by AXA leading to:

  1. Not being able to partake in any occupation, business, or other related activities that allow income generation.
  2. A continuous disability that is expected to be permanent and has lasted for at least 6 months.
Definition B

 

Disablement as a result of an accident, sickness or disease, resulting in the inability of the life assured to perform at least 3 of the 6 “Activities of Daily Living”(ADL) even with the aid of special equipment, requiring constant supervision and physical assistance of another person, continuously for at least 6 months, certified permanent by a medical practitioner appointed by AXA.

The “Activities of Daily Living” include:

  • Transferring: Moving from a bed, to an upright chair or wheelchair and vice versa.
  • Mobility: Indoor movement from room to room on level surfaces.
  • Toileting: Using the lavatory and managing bowel and bladder needs to maintain overall personal hygiene.
  • Dressing: Ability to put on, take off, secure and unfasten clothes, braces, artificial limbs, or surgical appliances.
  • Washing: Ability to get in and out of the bath or shower to carry out washing activities so as to maintain personal hygiene.
  • Feeding: Ability to feed oneself with already available food.
If the insured encounters the following between age 65 and age 70.

 

Disablement as a result of an accident, sickness or, disease, certified permanent by a medical practitioner appointed by AXA leading to:

  • Same definition as “Definition B” as listed above applies.
If the following is met at any age. Certified totally and permanently disabled in the following areas by a medical practitioner appointed by AXA:

  • When both eyes encounter total and permanent loss of sight.
  • Physical loss or inability to use any 2 limbs at or above the wrist or ankle.
  • When one eye encounters total, permanent loss of sight and physical or inability to use any 1 limb at or above the wrist or ankle.

Terminal Illness (TI) Benefit

The TI benefit is payable upon diagnosis of the insured with TI, which is expected to result in death within 12 months, certified by a medical practitioner approved by AXA.

The TI benefit is an advancement of the Death Benefit where the payout is inclusive of the basic sum assured and accumulated bonuses (if any), less the deduction of any payables.

TI with the presence of HIV infection does not qualify for the TI benefit.

TI benefit will reduce the basic sum assured due to it being an accelerated payment of the death benefit.

The policy will automatically be terminated if the TI benefit is the same as the basic sum assured.

Other Features and Benefits

Guaranteed Insurability Option (GIO)

Option to purchase another GIO Whole Life, term plan, or investment-linked policy with Death, TI, TPD and/or CI, without any health proof when the insured is met with the following significant life stage event(s):

  • Legal marriage or divorce
  • Birth of a newborn baby
  • Legal child adoption
  • Purchase of a new property in Singapore
  • Child entering primary school, secondary school, or University
  • First full-time employment after graduation
  • Death of spouse

 

AXA reserves the right to amend or update the GIO policy and significant life stages list at any time.

To qualify for GIO, the insured must meet the following requirements:

  • GIO must be carried out within 90 days from the date of occurrence of the significant life stage event, with legal documented proof.
  • The insured must be less than 55 years of age, upon GIO application.
  • No claim submission under the original AXA Life Treasure (II) policy.
  • The insured must not be diagnosed with or suffering from TPD, TI, or CI.
  • Application for GIO is valid once every policy year, up to a maximum of 3 significant life stage events. Significant live stages 1 and 4 can only be exercised once.

 

If Life Assured’s existing AXA Life Treasure (II) has an eligible CI rider, there will be an option to include the CI riders in the new GIO policy.

The maximum sum assured for GIO does not exceed S$300,000, or multiplier benefit if applicable.

Add On Riders

Multiplier Benefit Rider

The multiplier benefit is an optional rider with no cash surrender value. It allows you to increase your protection during your prime years.

It offers you a flexible range of options to multiply your coverage by 2, 3, 4, or 5 times of the basic sum assured, up till the age of 65, 70, or 80 years old.

You are also offered the flexibility of reducing your multiplier when your responsibilities lessen.

The multiplier benefit is the guaranteed amount received upon the event of death, Total and Permanent Disability, or Terminal Illness.

The benefit also applies to Critical Illness Benefit (II) and Early Critical Illness Benefit(II), which are both optional riders.

The Multiplier Benefit and eligible Multiplier Benefit amount will be determined during the point of claim(s), with the relevant multiplying factor.

Multiplier Benefit Rider: Death

If the multiplier benefit rider is purchased together with the policy, the death benefit will be paid out as follows:

Before or during the selected Multiplier Coverage. After the selected Multiplier Cover.
Paid out based on whichever is higher

(after deducting any payables):

 

  1. The Multiplier Benefit on death or
  2. Basic sum assured with accumulated bonuses (if any).
The basic sum assured with accumulated bonuses (if any), less any payables will be paid out.

Multiplier Benefit Rider: Total and Permanent Disability(TPD)

If the multiplier benefit rider is purchased together with the policy, the TPD benefit will be paid out as an advancement of the death benefit as follows:

Before or during the selected Multiplier Coverage. After the selected Multiplier Cover.
Paid out based on whichever is higher

(after deducting any payables):

 

  1. The Multiplier Benefit on TPD or
  2. Basic sum assured with accumulated bonuses (if any).

 

The accumulated bonuses will be prorated if the TPD benefit is lesser than the basic sum assured.

The basic sum assured with accumulated bonuses (if any), less any payables will be paid out.

 

The accumulated bonuses will be prorated if the TPD benefit is lesser than the basic sum assured.

Multiplier Benefit Rider: Terminal Illness (TI)

If the multiplier benefit rider is purchased together with the policy, the TI benefit will be paid out as an advancement of the death benefit as follows:

Before or during the selected Multiplier Coverage. After the selected Multiplier Cover.
Paid out based on whichever is higher

(after deducting any payables):

 

  1. The Multiplier Benefit on TI or
  2. Basic sum assured with accumulated bonuses (if any).

 

The accumulated bonuses will be prorated if the TI benefit is lesser than the basic sum assured.

The basic sum assured with accumulated bonuses (if any), less any payables will be paid out.

 

The accumulated bonuses will be prorated if the TI benefit is lesser than the basic sum assured.

Critical Illness Benefit (II) Rider

A lump sum payout is paid as an advancement of the death benefit if the insured is diagnosed with Advanced Stages of Critical Illness (CI) and additional protection against Top Common Critical Illnesses.

The payout includes the CI benefit and accumulated bonuses (if any), after deduction of any payables.

The CI benefit does not cover angioplasty and other invasive treatments for coronary arteries.

For angioplasty and other invasive treatment for coronary arteries, 10% of the sum assured of the CI Benefit will be paid out, up to a maximum of S$25,000.

The maximum Critical Illness Benefits payable is S$3 million, inclusive of all other policies issued by all insurance companies

This is a participating rider and does not hold any cash surrender value.

Multiplier Benefit Rider: Critical Illness (CI)

If the multiplier benefit rider is purchased together with the policy, the CI benefit will be paid out as an advancement of the death benefit as follows:

Before or during the selected Multiplier Coverage. After the selected Multiplier Cover.
Paid out based on whichever is higher

(after deducting any payables):

 

  1. The Multiplier Benefit on CI or
  2. Basic sum assured with accumulated bonuses (if any).

 

The accumulated bonuses will be prorated if the CI benefit is lesser than the basic sum assured.

The basic sum assured with accumulated bonuses (if any), less any payables will be paid out.

 

The accumulated bonuses will be prorated if the CI benefit is lesser than the basic sum assured.

The following Critical Illnesses (CI) are covered under the Critical Illness Benefit.

axa life treasure critical illness coverage

Top Common Critical Illness Benefit Rider

Upon diagnosis with any of the following top common critical illnesses, an additional amount equivalent to 50% of the original sum assured of the rider will be paid out.

This rider benefit can only be claimed once, and a survival period of 7 days is required to qualify for the claim.

The advanced stage Top Common Critical Illnesses include:

  1. Major Cancer
  2. Heart Attack of specified severity
  3. Stroke with permanent neurological effects
  4. Coronary Artery By-pass Surgery
  5. End-Stage Kidney Failure

 

Bonus Features

Reversionary Bonuses

AXA might allocate a reversionary bonus annually, but the bonus rate is not guaranteed. Once declared, the reversionary bonus becomes guaranteed and will be paid out, regardless of the performance of the participating fund, less any payables to AXA.

The accumulated reversionary bonus is paid out upon maturity of the policy, surrender of the policy, in the event of death, TPD, or TI.

A withdrawal of the reversionary bonus in cash value is allowed, but the bonus payout will be less than the guaranteed accumulated reversionary bonus. The cash value of the accumulated reversionary bonus will be determined by AXA.

After withdrawal, the policy continues to be active with zero accumulated reversionary bonus. Future reversionary bonuses can be added to the policy.

We provide you with the following illustration for a clearer understanding. For example, with a return of 4.25% p.a, the reversionary bonus is S$10.00 per $1,000 sum insured, with an annual compounding rate of 1%.

The annual compounding rate determines the interest built up on reversionary bonuses.

Terminal Bonus

Upon policy termination due to a claim, surrender or maturity, you might receive an additional bonus if AXA declared a non-guaranteed terminal bonus, less any payables to AXA.

The terminal bonus is indicated as a percentage of the accumulated reversionary bonus surrender value and the bonus might vary, depending on when the insured surrenders his or her policy.

Kindly refer to the table below for the illustration.

axa life treasure terminal bonus

Terminal Bonus based on a 4.25% p.a return.

Participating Fund Performance

The AXA Life Treasure (II) is also a participating policy that allows the insured to accumulate cash value in the form of guaranteed and non-guaranteed bonuses.

Annual Investment Performance

AXA’s Participating Fund in recent years has generally been performing well.

2018 2019 2020
Investment Returns -0.10% 10.72% 10.18%

In fact, it has been one of the top-performing participating funds in recent years. Below is an illustration of yearly par fund investment performance in the past decade.

singapore insurers 10 year par performance

With the illustration of the table below, AXA has also managed to rank “top three” 6 times in the past decade for participating fund performance, making it one of the best performing participating funds in the market.

singapore insurers top 3 par

Geometric Average

The Geometric Average will be more suitable and accurate in calculating profits for investment portfolios such as that of participating funds.

Instead of just taking the average rate of return, the geometric average takes into account compounding and returns and losses, which has a part to play in the amount reinvested in the following years.

insurers geometric average

AXA has been one of the top-performing participating funds based on geometric average net investment returns on participating funds, with steady growth for the past decade and 5 years, leading to being the top 2 performers for the past 3 years (2017-2019), at 7.44%, higher than the group average of 6.69%.

Expense Ratio

AXA has the highest average expense ratios in the past 3 years. The expense ratio is one of the important factors to take note of as it can significantly affect the final profits generated for the participating fund.

insurers expense ratio

Overall Performance

AXA may have been one of the top few participating funds in the market in recent years, but it is important to note that they have the highest expense ratio which might result in a reduction of profits.

The results mentioned above are based on past fund performance and may not be indicative of future profits and results.

It is also important to understand that the final returns distributed to policyholders are not the same as the funds’ rate of returns. The bonuses are decided and declared by AXA.

My Take on AXA Life Treasure (II)

Looking for an insurance plan that offers protection and retirement planning at the same time? AXA Life Treasure (II) is one of the few plans that might provide you with this solution.

AIA Guaranteed Protect Plus (II) AXA Life Treasure (II) Aviva MyWholeLife Plan (III) Manulife LifeReady Plus NTUC Income Star Assure
Premium Term 20 Years 20 Years 20 Years 20 Years 20 Years
Annual Premium $2,370 $2,778 $2,342 $2,339 $2,284
Total Premiums Paid $47,400 $55,560 $46,840 $46,780 $45,680

Premiums are based on a 30-year-old male, non-smoker with a sum assured of $100,000, with a 2x Multiplier Benefit.

Based on the above specifications, here’s the surrender value for the AXA Life Treasure (II):

Year Guaranteed Total @ Non-Guaranteed 3% Total @ Non-Guaranteed 4.25%
5 $3,100 $3,165 $3,431
10 $11,300 $11,735 $13,560
20 $36,900 $39,639 $51,697
30 $47,300 $53,552 $82,502

In comparison with the annual premiums across the whole life plans with benefits that can help boost retirement income, AXA Life Treasure (II) has one of the value for money premiums as it provides coverage for more types of critical illnesses as compared to Manulife LifeReady Plus (II).

The AXA Life Treasure’s (II) critical illness conditions coverage, is also almost on par with Aviva MyWholeLifePlan, with just 4 conditions lesser. The AXA Life Treasure also has the same number of special conditions coverage as Aviva MyWholeLifePlan (II), but has much higher premiums.

AXA Life Treasure (II) Aviva MyWholeLife Plan (III) Manulife LifeReady Plus NTUC Income Star Assure
Early Critical Illness  41 55 46 44
Intermediate Critical Illness  37 37 34 30
Advanced Critical Illness  56 44 44 39
Total Covered Conditions 132 136 124 113
Additional Coverage
Special Benefits (Diabetic Complications, Osteoporosis, etc) 14 16 21 10
Juvenile Benefits (Kawasaki Disease, Severe Hemophilia, etc) 14 12 13 9
Total additional coverage 28 28 34 19

Comparison of the number of critical illnesses coverage and additional coverage.

On top of the above-mentioned benefits, AXA has been one of the top few participating funds in the market in recent years as well. It also has the following benefits for consideration when choosing a whole life insurance best suited for your needs:

  • Lower claim criteria for advanced disability payout that allows 2/6 “Activities of Daily Living”, instead of 3/6.
  • Up to 10 times coverage for accidental death.
  • Has one of the longest (up till the age of 80) and highest (up to 5 times) multiplier benefits in the industry.
  • Has one of the longest (up till the age of 80) coverage for TPD in the industry,
  • High surrender value if the policy is surrendered in its early stages.

 

Furthermore, the AXA Life Treasure II has been listed as one of the best life insurance plans in Singapore TWICE in our comparison amongst all life policies in Singapore.

Of course, a review is not a review if I don’t include the downsides as well. These include:

  • Not offering retrenchment benefits as compared to other whole life insurance like Manulife LifeReady Plus (II) and Aviva MyWholeLifePlan (II).
  • Having the highest average expense ratios in the past 3 years, which can significantly affect the final profits generated for the participating fund.

 

Despite this, you should assess your insurance coverage and investment objectives and do your due diligence before deciding on any policies and investments.

For whole life policies, it’s best to look at the coverage, par fund performance, and expense ratios, instead of just the premiums you’ll pay.

This is especially true when you’re purchasing for ECI/CI coverage.

Check the definitions and whether what’s covered is in line with your past medical history and your family’s.

Need some assistance in selecting the best life policy suited for your needs?

Contact a licensed financial advisor. They will provide you with an unbiased view and opinion based on your needs to help you find the right life policy best suited for you.

References

Product Summary

https://www.axa.com.sg/life-insurance/axa-life-treasure-ii

https://blog.moneysmart.sg/life-insurance/tokio-marine-singapore-par-fund-performance-comparison-2021/

https://www.prudential.com.sg/dotribe/articles/do_wealth/life-insurers-balancing-act-only-gets-harder

https://www.axa.com.sg/pdf/our_solutions/life/axa-life-treasure-ii/axa-life-treasure-ii-brochure.pdf

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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