AXA Equitable Redesigns Flagship Accumulator Variable Annuity
November 19 2008 - 9:07AM
PR Newswire (US)
Company Combines Income Guarantees with Innovative Benefit
Flexibility; Offers Industry-First Conversion Feature NEW YORK,
Nov. 19 /PRNewswire-FirstCall/ -- AXA Equitable Life Insurance
Company premiered today a redesign of its Accumulator(R) variable
annuity series. The product series, first introduced in 1995, now
includes a groundbreaking living benefit that can seamlessly
transition from a Guaranteed Minimum Income Benefit (GMIB) to a
Guaranteed Withdrawal Benefit for Life (GWBL). For the first time
in the industry, variable annuity contractholders have the ability,
at age 85, to convert a GMIB to a GWBL. The patent-pending
enhancement offers clients a method for staying invested in
equity-based investment options, while at the same time accessing a
predictable stream of retirement income. AXA Equitable's
Accumulator responds to the general increase in longevity and the
decrease in traditional pensions by offering clients a way to both
secure a guaranteed minimum retirement income stream and keep their
options open to pursue continued growth potential in equity-based
subaccount investment options. With a streamlined focus on the
product's GMIB benefit, today's Accumulator redesign affirms AXA
Equitable's core business strategy of offering innovative financial
products in a financially sustainable manner. "The current
environment of extreme market volatility makes it clear that
Americans are in need of reliable guarantees from strong
guarantors," said Christopher M. "Kip" Condron, Chairman and Chief
Executive Officer of AXA Equitable. "Our commitment to act
responsibly in all facets of our business is reflected in the
prudent design of our products, providing us with adequate
resources to meet client promises now and well into the future."
Pioneered in the industry by AXA Equitable in 1996, the optional
GMIB rider, available for an additional fee, provides a "floor" of
future, predictable lifetime income, regardless of subaccount
investment performance. "Today, with our new conversion option,
we're redefining what people can expect from an annuity," said
Claude Methot, Executive Vice President and Chief Product Officer
for AXA Equitable. "Previously at age 85, our clients had to choose
between exercising their GMIB by annuitizing or losing the
guarantee. Now, they have the flexibility to maintain a lifetime
income guarantee and stay invested, while retaining the elected
death benefit. This innovation significantly enhances the way
people use variable annuities as part of their retirement financial
plans, especially over what could be a 30-year period or longer."
Flexibility and Choice Clients who elect the GMIB can chose to: --
Invest in more than 50 individual subaccount investment portfolios
from nationally recognized investment firms or pursue their
financial goals with one of Accumulator's asset allocation
portfolios; -- Select a beneficiary protection option, either a
Standard Death Benefit or enhanced death benefits, available for an
additional fee, that allows beneficiaries to take advantage of
gains that have been "locked-in" during up markets; -- Stop paying
for the GMIB rider if circumstances change and the feature is no
longer needed. Even if a client chooses at some point to
discontinue the GMIB rider, he or she can still continue the
Accumulator contract and maintain its death benefit; -- Exercise
the GMIB whenever they need to, after it becomes effective 10 years
after election, up to age 85. GMIB owners have until their contract
anniversary after age 85 to exercise their GMIB to obtain a
guaranteed minimum lifetime income amount. GMIB owners who choose
not to exercise their GMIB at age 85 have several options. They
can: -- Convert their GMIB to Accumulator's GWBL option. The
conversion allows owners to keep their death benefit and remain
invested in equity-based subaccount investment options, while at
the same time receive a guaranteed minimum stream of withdrawals;
-- Not exercise their GMIB rider but continue their contract,
remain invested in any available subaccount investment option and
maintain their contract's death benefit; or, -- Take a lump sum
payment and terminate the contract. About Accumulator -- The
Accumulator is a flexible payment variable deferred annuity
offering a way to help build long-term wealth, guarantee a future
income today and protect a contract owner's family along the way.
Accumulator's GMIB -- This optional variable annuity rider,
available for an additional fee, provides a "floor" for
predictable, future lifetime income. If elected, Accumulator owners
choose whether to keep it until age 85. When the GMIB is selected,
contract owners know what their minimum future guaranteed lifetime
payments will be when and if the GMIB is exercised, which can begin
on the 10th contract anniversary or any subsequent contract
anniversary, at least 10 years after the benefit effective date,
but not later than the contract anniversary after the contract
owner reaches age 85. If the contract owner chooses not to exercise
the GMIB, the benefit base grows at a 6% annual rate to age 85,
assuming no withdrawals. The annual increase is 3% for certain
subaccount investment portfolios. Contract owners can elect to
withdraw from the account value up to 6% of the GMIB Roll-up to Age
85 Benefit Base at the beginning of each following contract year
anniversary, without annuitizing and without decreasing the
guaranteed future income payment stream below the initial
guarantee. Even in down markets the Roll-up Benefit Base keeps
rising at a set percentage rate of 6% until age 85. At age 85,
contract owners also have the option to stay invested in the
subaccount investment options by converting their contract to the
GWBL. If a contract owner converts the GMIB to the GWBL at age 85,
the GWBL guaranteed annual withdrawal amount will equal 7% of the
Account Value or 6% of the GMIB Benefit Base. The Benefit Base has
no cash value. The GMIB is an optional feature of the Accumulator
variable annuity that entails additional costs and contains certain
limitations and restrictions. A variable deferred annuity, such as
the Accumulator variable annuity, is a long-term financial product
designed for retirement purposes. In essence, an annuity is a
contractual agreement in which payment(s) are made to an insurance
company; the insurance company then agrees to pay out an income or
a lump sum amount at a later date. Variable annuity contracts are
not insured by the FDIC or any other government agency. They are
not deposits or obligations of any bank, are not bank guaranteed
and may go down in value. Amounts invested in an annuity's variable
subaccount investment options are subject to fluctuations in value
and market risk, including loss of principal. Typically, variable
annuities have mortality and expense (M&E) charges, account
fees, investment management fees, and administration fees. In
addition, annuity policies have exclusions and limitations; early
withdrawals may be subject to surrender charges; and, if taken
prior to age 59 1/2, a 10% federal income tax penalty may apply.
Guarantees are based on the claims-paying ability of AXA Equitable
Life Insurance Company. Please consider the charges, risks,
expenses, and investment objectives carefully before purchasing a
variable annuity. For a prospectus containing this and other
information, please contact a financial professional. Read it
carefully before you invest and send money. This release is not a
complete description of all the material provisions of the
Accumulator contract. Certain types of contracts' features and
benefits may not be available in all jurisdictions. Accumulator
variable annuities are issued by AXA Equitable Life Insurance
Company, New York, N.Y. 10104 and are co-distributed by affiliates
AXA Advisors, LLC and AXA Distributors, LLC. AXA Equitable has sole
responsibility for its annuity and life insurance obligations.
About AXA Equitable In business since 1859, AXA Equitable Life
Insurance Company is a leading financial protection company and one
of the nation's premier providers of life insurance, annuity, and
investment products and services. AXA Equitable's assets under
management totaled $665.6 billion as of September 30, 2008. AXA
Equitable's assets under management are inclusive of assets under
management held by an affiliate AllianceBernstein, L.P. The
company's products and services are distributed to individuals and
business owners through its retail distribution channel, AXA
Advisors, LLC; to the financial services market through its
wholesale distribution channel, AXA Distributors, LLC; and to
corporations and their employees through its corporate distribution
channel, Corporate Markets. AXA Equitable is the creator of
MyRetirementShop.com (http://www.myretirementshop.com/), a
lifestyle website that's a one-stop-shop for information and
resources to help consumers redefine life in retirement. It's the
company's latest innovation in our At Retirement(R) platform,
committed to helping individuals near and at retirement make
informed choices to enhance and preserve their lifestyle. 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's operations are
geographically diverse, with major operations in Europe, North
America, and the Asia/Pacific region. AXA Group is listed as the
15th largest company in the world on the 2008 Fortune Global 500
list (based on revenues). "AXA Group" refers to AXA, an
international financial services holding company together with its
direct and indirect consolidated subsidiaries. It had $1.81
trillion in assets under management as of June 30, 2008. Listed on
the Paris Stock Exchange, the AXA ordinary share trades under the
symbol AXA. The AXA American Depositary Share is listed on the New
York Stock Exchange under the ticker symbol AXA. For more
information, visit http://www.axa-equitable.com/. DATASOURCE: AXA
Equitable CONTACT: Discretion Winter, +1-212-314-2968, , or Jo Ann
Tizzano, +1-212-314-2979, , both of AXA Equitable Life Insurance
Company Web Site: http://www.axa-equitable.com/
http://www.myretirementshop.com/
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