AXA Equitable Fills the Gap between Term and Perm
July 24 2007 - 3:58PM
PR Newswire (US)
Company Introduces Return of Premium Term Life Insurance Product
NEW YORK, July 24 /PRNewswire-FirstCall/ -- AXA Equitable further
enhanced its life insurance product portfolio by introducing Return
of Premium (ROP) Term(SM) life insurance, available for 20-, 25-,
and 30-year level periods. The announcement was made today by
Michael Ferik, Senior Vice President, Life Product Development. AXA
Equitable's ROP Term(SM) premiums are priced between the company's
traditional level term and permanent life insurance. "ROP Term(SM)
fills the product gap between term and perm," said Mr. Ferik. "Term
life is largely known for its affordability. Clients who can't
afford or don't want permanent insurance often turn to traditional
term insurance as a temporary solution. For those who can afford to
pay more than the traditional term premium, however, ROP Term(SM)
offers clients death protection for a selected period and then
gives them their money back income tax-free." If a policyholder
outlives the ROP Term(SM) level premium period and the policy is
still in force, he or she will receive a refund of 100% of the
eligible cumulative premiums paid*. The cash refunded is federal
income tax free. "In essence, the policyholder is rewarded for
outliving the level premium period," said Mr. Ferik. Rate of Return
"A good way to look at the ROP Term benefit," says Mr. Ferik, "is
to calculate the rate of return that would need to be earned on the
annual premium difference between AXA Equitable's traditional Level
Term Series and the ROP Term(SM) Series." For example, if a 35-year
old female, Preferred, non-tobacco user purchased a $1 million ROP
Term(SM) 30-year policy, the annual premiums would be $1,455,
instead of $895 for a traditional 30-year Level Term policy. On the
difference of $560, she would have to earn 5.6% after tax on an
investment each year to have the same amount of money as the ROP
Term(SM) benefit amount. In a 28% tax bracket, that would equate to
a 7.8% return. Ease of Convertibility As families and/or businesses
grow, it may make sense to 'move up' to permanent life insurance,
which offers lifelong death benefit protection. During specified
periods, ROP Term(SM) is convertible to AXA Equitable's permanent
life insurance, without having to furnish additional evidence of
insurability. Giving clients time to make up their mind, AXA
Equitable's conversion privilege is available for the first 15
years of a 20-year ROP Term(SM) policy, the first 17 years of a
25-year ROP Term(SM) policy and the first 20 years of a 30-year ROP
Term(SM) policy, until the policy anniversary nearest the insured's
70th birthday. When a policyholder exercises the conversion
privilege, the cash value of the policy can be applied to the new
permanent policy or, if preferred, taken in cash. In addition, AXA
Equitable guarantees a conversion credit to reduce the first-year
cost of the new permanent insurance policy About AXA Equitable ROP
Term(SM) Series AXA Equitable's ROP Term(SM) includes a choice of
benefit riders for an additional cost that enable clients to expand
their coverage, including a Disability Premium Waiver, and
Children's Term Insurance Rider. Variations by state may apply to
the AXA Equitable ROP Term(SM) Series. AXA Equitable's Return of
Premium Term(SM) (Policy forms 148-20, 148-25, 148-30 or state
variations) is issued by and is a service mark of AXA Equitable
Life Insurance Company, New York, NY. All guarantees are based on
the claims-paying ability of AXA Equitable Life Insurance Company.
About AXA Equitable AXA Equitable Life Insurance Company has been
in business since 1859 and is a leading nationwide issuer of life
insurance and annuity products. The company has over 11,000
employees and sales personnel and approximately 4.8 million
policy/contract holders nationwide as of December 31, 2006. AXA
Equitable Life Insurance Company, New York, N.Y., is one of the
premier U.S. organizations providing life insurance and annuity
products and services for the financial services market. Variable
products are co- distributed by affiliates AXA Advisors, LLC, and
AXA Distributors, LLC. AXA Equitable's parent company, AXA
Financial, Inc., is a member of the global AXA Group, a worldwide
leader in financial protection and wealth management. AXA Group's
operations are diverse geographically, with major operations in
Western Europe, North America, and the Asia/Pacific region. The AXA
ordinary share is listed on the Paris Stock Exchange and trades
under the symbol AXA. The AXA American Depositary Share is also
listed on the NYSE under the ticker symbol AXA. AXA Equitable is
solely responsible for its life insurance and annuity obligations.
AXA Equitable is a sponsor of the Variable Annuities Knowledge
Center http://www.variableannuityfacts.org/), an online resource
aimed at helping consumers understand the facts surrounding
variable annuities. The Variable Annuities Knowledge Center is
operated by a standalone non-profit organization and is overseen by
an independent advisory board. * Eligible cumulative premiums
include premiums for the policy that were paid prior to the
benefits expiration date and do not include premiums for riders or
additional risks. GE- 40806 (07/07) DATASOURCE: AXA Equitable
CONTACT: Discretion Winter, +1-212-314-2968, , or Lisa Tibbitts,
+1-212-314-2811, , both of AXA Equitable Web site:
http://www.axa-equitable.com/ http://www.variableannuityfacts.org/
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