AXA Equitable Introduces Athena Indexed Universal Life Insurance
July 15, 2010 by N/A
New Product Offers Lifetime Coverage with Protected Exposure to Equity-linked Growth Potential
NEW YORK, July 14 /PRNewswire-FirstCall/ — AXA Equitable Life Insurance Company, a leading U.S. life insurer with a 150-year history, has introduced Athena Indexed Universal Life (Athena IUL), a new permanent life insurance policy with enhanced cash-value accumulation potential and downside protection. Athena IUL offers interest crediting linked to the movement of three major market indices (up to a cap) with a built-in guaranteed floor to help protect against index declines.
“In light of recent market volatility, historic low interest rates, and concerns about the potential for rising taxes, Athena IUL represents a new permanent life insurance product that addresses multiple needs, including beneficiary protection, cash value accumulation and down market risk management,” said Christopher M. “Kip” Condron, chairman and chief executive officer of AXA Equitable. “For individuals and business owners who are juggling a desire to reduce equity risk with a need to build future income, we believe this new solution offers the right blend of benefits.”
Diversification by Market and Time Period
Athena IUL policyholders can allocate net premiums (after expenses) to any combination of four indexed options where cash value can grow (up to a cap) based on the movement of major equity indices. Policyholders have access to indexed options driven by three different equity indices, enabling participation in a broad scope of market opportunities – U.S. large-cap stocks, U.S. small-cap stocks and foreign stocks. Policyholders can also diversify by time period, choosing between three indexed options structured with a one-year maturity and one with a three-year maturity:
— The 1-Year S&P 500 Price Return Index Indexed Option
Based on the Standard & Poor’s 500 Price Return index (S&P 500), which tracks the market capitalization (the aggregate price, or value) of the 500 most widely held large-cap U.S. stocks and is generally regarded as the benchmark for broad U.S. stock market performance.
— The 1-Year Russell 2000 Indexed Option
Based on the Russell 2000 Index, which is generally regarded as the benchmark for U.S. small-cap funds. Russell 2000 tracks the market capitalization of the 2,000 smallest companies listed on the Russell 3000 index, which includes the 3,000 largest companies in the U.S., based on market capitalization.
— The 1-Year MSCI EAFE Indexed Option
Based on the MSCI EAFE Index, which, as of July 2010, tracks the market capitalization of 22 individual country indices in Europe, Australasia and the Far East and is broadly accepted as a benchmark of international equity shares.
— The 3-Year S&P 500 Price Return Index Indexed Option
Also based on the Standard & Poor’s 500 Price Return Index (S&P 500).
In addition to these indexed options, policyholders can allocate premium to a Guaranteed Interest Account, which credits a rate of interest guaranteed to never be less than 2%.
Simplified Crediting Rate Strategy
The Athena IUL indexed options deliver growth potential (up to a cap) based on index movements, without exposing policyholders to the possible downside risk typically associated with equity markets. This is accomplished through the beneficial way the index options interest credits are calculated in an Athena IUL policy.
AXA Equitable uses a simplified point-to-point method to determine the index “performance rate” for each indexed option segment – the difference between the index’s value at the beginning and end of the 1-year or 3-year segments. This is then multiplied by the “participation rate” – the percentage of the index growth on which the interest credit is based, subject to the cap and floor established by AXA Equitable.
With Athena IUL, the participation rate is guaranteed to be at least 100%, providing a level of comfort not always found in index-linked life insurance products. If market conditions warrant, AXA Equitable also reserves the right to raise the participation rate above 100% in the future.
“Our new Athena IUL demonstrates the evolution of life insurance and the unique role it can play today in a financial plan,” said Andrew McMahon, president of Financial Protection and Wealth Management for AXA Equitable. “By offering a dynamic coverage strategy with equity-linked growth potential, as well as a guaranteed floor to protect against index declines, we have once again set the tone in the industry – long a characteristic of AXA Equitable.”
About Athena IUL
Athena Indexed Universal Life(SM) is a flexible premium universal life insurance policy with index-linked interest options. Life insurance policies have certain exclusions and limitations and terms for keeping them in force. Certain types of policies, features and benefits may not be available in all jurisdictions or may be different. For costs and complete details of coverage, contact your financial professional. This press release contains summary information about Athena Indexed Universal Life policy. Please read the actual policy for terms and conditions.
Athena Indexed Universal Life is a service mark of AXA Equitable Life Insurance Company (AXA Equitable), New York, NY 10104.
Athena Indexed Universal Life is issued by AXA Equitable Life Insurance Company (NY, NY), and distributed through AXA Distributors, LLC, and AXA Network, LLC and its insurance agency subsidiaries. AXA Equitable, AXA Network and AXA Distributors are affiliated companies and do not provide tax or legal advice.
Policy form # ICC 01-200 or state variations.
All guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company.
About AXA Equitable
In business since 1859, AXA Equitable Life Insurance Company (NY, NY) is a leading financial protection company and one of the nation’s premier providers of life insurance and annuity products, as well as investment products and services through its affiliates, including, AXA Advisors, LLC. The company’s products and services are distributed to individuals and business owners through its retail distribution channel, AXA Advisors and to the financial services market through its wholesale distribution channel, AXA Distributors, LLC.
AXA Equitable, a subsidiary of AXA Financial Inc., is part of the global AXA Group, a worldwide leader in financial protection strategies and wealth management. “AXA Group” refers to AXA, a French holding company for an international group of insurance and financial services companies, together with its direct and indirect consolidated subsidiaries. For more information, visit www.axa-equitable.com. Guarantees are backed solely by the claims-paying ability of AXA Equitable.
For more information, visit www.axa-equitable.com
S&P®, Standard & Poor’s®, S&P 500® and Standard & Poor’s 500™ are trademarks of Standard & Poor’s Financial Services, LLC (Standard & Poor’s) and have been licensed for use by AXA Equitable. Athena Indexed Universal Life(SM) is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s does not make any representation regarding the advisability of purchasing an Athena Indexed Universal Life(SM) policy .
The Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by AXA Equitable. Athena Indexed Universal Life(SM) is not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of purchasing an Athena Indexed Universal Life(SM) policy
The index-linked options referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such index on which any such index-linked options are based. The policy contains a more detailed description of the limited relationship MSCI has with AXA Equitable and any related index-linked options.
Stocks of small size companies may have less liquidity than those of larger companies and may be subject to greater price volatility than the overall stock market. Smaller company stocks involve a greater risk than is customarily associated with more established companies.
International securities carry additional risks including currency exchange fluctuations and different government regulations, economic conditions or accounting standards.
SOURCE AXA Equitable
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