AXA Equitable Offers Clients a Way to Increase Their Life Insurance Policy's Cash Surrender Value
January 15 2008 - 12:20PM
PR Newswire (US)
New Rider Offsets Liquidity Issues for Wealthy Individuals and
Corporations NEW YORK, Jan. 15 /PRNewswire/ -- Sometimes liquidity
is an issue when wealthy individuals or businesses require
substantial amounts of life insurance protection. That's why AXA
Equitable introduced today in approved jurisdictions a new Cash
Value Plus Rider on its Athena Universal Life(SM) Death Benefit
product (Athena UL-DB(SM) CVPlus Rider). Whether it's protecting a
family's financial future or a successful business, the CVPlus
Rider reduces the need to tie up other assets or obtain letters of
credit as collateral when financing life insurance. The
announcement was made by Claude Methot, Senior Vice President and
Chief Product Officer of AXA Equitable. Advanced Planning for
Individuals and Corporations "The financial protection life
insurance offers can be critical to sustain a thriving business or
protect a wealthy person's estate but sometimes liquidity
constraints delay action to protect," said Mr. Methot. "Our new
CVPlus Rider makes it easier to act, by offering a flexible
alternative for clients who are reluctant to move assets for
purposes of posting collateral in premium financing arrangements."
Using the CVPlus Rider, a client may get upwards of 95% of required
collateral with the policy alone, minimizing out-of-pocket
collateral and often obtaining more favorable financing terms. The
CVPlus Rider may also be beneficial in corporate-owned business
planning. "By increasing the policy's Cash Surrender Value," said
Mr. Methot, "the CVPlus Rider can offset the impact of the premium
outlay on a corporation's books." How the CVPlus Rider Works AXA
Equitable Athena UL-DB policies with the CVPlus Rider have higher
early Cash Surrender Value, if the policy is fully surrendered,
than policies without it. For a one-time charge of $250, there are
two different ways that the CVPlus Rider increases the policy's
Cash Surrender Value: 1. For the first eight(8) policy years,
surrender charges will be reduced by a specified percentage as
indicated in this chart below: Policy Year 1-4 5 6 7 8 % Reduction
100% 80% 65% 45% 25% 2. And refunding a portion of the cumulative
premium charges deducted during the first three(3) policy years.
The CVPlus Rider must be elected at issue of an Athena Universal
Life(SM) Death Benefit policy with a minimum face amount of
$1,000,000 and $50,000 in annualized premium. Issue ages vary by
underwriting class and tobacco user status and range between ages
0-75. Face amount increases are not permitted while the rider is in
force. * The reduction in surrender charge does not apply to any
proportionate surrender charges resulting from a face amount
decrease. Also, the enhanced cash value is not available if the
policy is being exchanged or replaced with another life insurance
policy or annuity contract on the insured, including (but not
limited to) 1035 exchanges, except for policies issued in Florida.
Athena UL(SM)-DB (Policy form #07-200 or state variation; CVPlus,
rider form #07-80 or state variation) 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, which has been in business since 1859, is a
leading nationwide issuer of life insurance and annuity products.
The company had more than 11,000 employees and sales personnel and
approximately 4.8 million policy/contract holders nationwide as of
Dec. 31, 2006. AXA Equitable is solely responsible for its life
insurance and annuity obligations. AXA Equitable Life Insurance
Company, New York, NY, 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. AXA Group's operations are geographically
diverse, 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
stand-alone non-profit organization and it is overseen by an
independent advisory board. 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/
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