AXA Equitable Unveils Crossings(SM): My Lifetime IRA(SM)
April 01 2008 - 12:10PM
PR Newswire (US)
Innovative Rollover Variable Annuity with Guaranteed Withdrawal
Benefit Turns Assets from Retirement Plans Into Guaranteed Income
for Life for Fortune 1000 Employees NEW YORK, April 1, 2008
/PRNewswire-FirstCall/ -- AXA Equitable Life Insurance Company,
which pioneered living benefits in variable annuities, today
launched a new variable annuity -- Crossings(SM): My Lifetime
IRA(SM), designed specifically as a rollover option for employees
taking distributions from employer-sponsored retirement plans at
Fortune 1000 companies. Crossings(SM) is the first product
developed by Corporate Markets, AXA Equitable's newly created
business unit providing retirement plan solutions and strategies to
large corporations. Crossings(SM) is not available through any
other business unit. Bill McDermott, Executive Vice President of
AXA Equitable and Head of Corporate Markets, made the announcement.
Data from the fourth annual AXA Equitable Retirement Scope released
in January 2008, which surveyed workers and retirees about their
financial preparations, quality of life and views on retirement,
show that Americans are deeply concerned about outliving their
retirement savings. They also want protection against market
volatility, as well as the ability to maintain their quality of
life after retirement. According to the results, more than 70% of
workers believe employers are responsible for retirement readiness.
Crossings(SM) is designed to address these retirement concerns, and
do so as a supplement to the employer's benefit plans. "Many plan
sponsors have focused on employee savings and investment decisions
to create retirement readiness," said Mr. McDermott. "But what we
call the Third Decision -- that is, the decision on what to do with
the plan distribution -- has been largely unaddressed by most plan
sponsors." For these reasons, Corporate Markets initially focused
on developing a rollover product that also provides comprehensive
education and ongoing support for large companies and their
employees. "The core of the Crossings(SM) solution is a variable
deferred annuity designed to turn retirement plan assets from
defined contribution plans, such as 401(k)s and lump sum defined
benefit plans, into a guaranteed annual income stream -- regardless
of underlying investment performance -- for as long as the retiree
lives," added Mr. McDermott. "That's the Crossings guarantee."
Crossings(SM) also allows the individual to choose from a menu of
five asset allocation portfolios, ranging from conservative to
aggressive. Each portfolio uses a "fund of funds" approach to
allocate its assets across multiple asset classes and investment
styles using a number of underlying funds. The underlying funds use
active management as well as passively-managed strategies and ETFs.
The individual's Guaranteed Annual Payment, or GAP, can increase if
the individual defers payments, or if investment gains drive the
value of the individual's account above the initial rollover value.
But the Guaranteed Annual Payment will never decrease, regardless
of investment performance as long as an individual does not make
withdrawals in excess of the GAP amount in any contract year. Other
attractive features include relatively low costs; and the ability
for contract owners to maintain access to the account balance if
and when they need it. Along with the product, AXA Equitable's
Corporate Markets is providing fact-based education and ongoing
support to employees before, at and after retirement delivered
through work-site seminars, web-based tools and individual
counseling accessible via a service support call center.
Additionally, individuals specifically trained to support the large
corporate market, will be available at the work-site to provide
employees additional one-on-one education and counseling.
"Employers invest significantly in retirement security over the
course of an employee's career; yet that security is dependent on
the individual's decisions at the cross-over point -- decisions for
which many employees lack knowledge and are given minimal support,"
Mr. McDermott stated. "Crossings can help employers increase the
likelihood of actually achieving retirement security for the
exiting employee, without taking on additional cost or risk for the
organization." Crossings(SM): My Lifetime IRA(SM): Key Product
Features Professional investment management and choice.
Crossings(SM) owners have the flexibility and simplicity of
choosing from among five professionally- managed investment
portfolios that range from conservative to aggressive so owners can
choose the right style to fit their goals. The portfolio choice can
be changed at any time with no cost. Amounts in an annuity's
variable investment portfolio are subject to fluctuation in value
and market risk, including loss of principal. Guaranteed lifetime
income with downside protection. Crossings(SM) owners will receive
a Guaranteed Annual Payment (GAP) for the rest of their lives. The
GAP amount is 5% of their income base, which is equal to the amount
of their initial rollover contribution. The GAP can go up, but it
can never go down based on market performance, even if the account
balance goes to zero. This feature allows Crossings(SM) owners the
opportunity for greater equity exposure. GAP payments, which are
withdrawals from the contract, can begin as early as age 59 1/2 and
will last for the rest of the owner's life, and the life of his or
her spouse if they choose the joint option. The only time the GAP
will be reduced is if the owner makes withdrawals in excess of the
GAP in a contract year. Withdrawals of taxable amounts are subject
to ordinary income tax and if made prior to age 59 1/2, may be
subject to additional federal income tax. Upside potential. Until a
Crossings(SM) owner begins withdrawals, the value of the income
base will grow by a minimum of 6% annually through a deferral
bonus, regardless of investment performance. Through an annual
step- up, on each contract anniversary, if the account value is
higher than any previous anniversary, the income payment
automatically increases and the new, higher GAP is locked in for
life. Since the downside protection allows Crossings(SM) owners to
remain invested in equities, there is more potential for the
account value to increase if the market performs well. Since the
account value can go up with strong market performance,
Crossings(SM) also gives owners a way to hedge against inflation.
Prior to the first withdrawal, any year the owner is eligible for
both an annual step-up and a 6% deferral bonus, he or she will get
the greater amount. Access to the account balance. Crossings(SM)
owners have control over their money -- they can withdraw their
account balance at any time. If the account has been open for three
contract years, there is no surrender charge. If an excess
withdrawal is needed in the first three years, the owner will pay a
surrender charge of 2% of the excess amount. Withdrawals of taxable
amounts are subject to ordinary income tax and if made prior to age
59 1/2, may be subject to additional federal income tax. All
withdrawals made prior to age 59 1/2 are considered excess
withdrawals. Something for the next generation. Upon the owner's
death (or the death of his or her spouse if the joint option is
selected), the remaining money in the account balance will be
available to the owner's beneficiaries. Additional Information A
variable deferred 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,
which will pay out an income or a lump sum amount at a later date
based on the contract terms and conditions. Crossings(SM) provides
owners with a Guaranteed Annual Payment (GAP) for life determined
by the income base. The income base and the GAP can increase, but
will never decrease, even if the account balance goes to zero due
to poor investment performance. The only way the GAP and income
base will be reduced is if the owner makes a withdrawal from the
account balance in excess of the guaranteed annual payment in a
contract year. The Crossings(SM) variable annuity has fees which
cover mortality and expense (M&E) charges, guaranteed
withdrawal benefits and investment management fees. A withdrawal
charge of 2% will apply to excess withdrawals during the first
three contract years, and, if taken prior to age 59 1/2, a 10%
federal income tax penalty may apply. This is not a complete
description of all material provisions of the annuity contract.
Annuities have limitations. For costs and complete details, contact
a financial professional. All guarantees discussed are subject to
the claims-paying ability of AXA Equitable Life Insurance Company.
The guarantees do not apply to the investment portfolios. Please
also consider the charges, risks, expenses and investment
objectives of Crossings(SM): My Lifetime IRA(SM) carefully before
investing. For a prospectus containing this and other information,
please call the company at 212-314-4181. Read it carefully before
you invest or send money. This press release was prepared to
support the promotion and marketing of AXA Equitable variable
annuities and is not intended as legal or tax advice. Any tax
statements contained herein were not intended or written to be
used, and cannot be used, for the purpose of avoiding U.S. federal,
state or local tax penalties. You should seek advice based on your
particular circumstances from an independent tax or legal advisor.
Neither AXA Equitable nor AXA Advisors, LLC provides tax or legal
advice. You should consult with your own tax and/or legal advisor
before investing. Crossings(SM): My Lifetime IRA(SM) is a variable
annuity contract issued by AXA Equitable Life Insurance Company and
distributed by an affiliate, AXA Advisors, LLC. Crossings(SM) and
My Lifetime IRA(SM) are service marks of AXA Equitable Life
Insurance Company. Contract form#s 2007IFL-A/B (rev 11-07),
2007IFL-I-A/B(rev 11-07), 2007IFL-I-A(OR), E-2007IFL-ROTH and any
state variations. 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 $888.6 billion as of
December 31, 2007. 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, 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 Western Europe,
North America, and the Asia/Pacific region. AXA Group is listed as
the 15th largest company in the world on the 2007 Fortune Global
500 list (based on revenues). It had $1.87 trillion in assets under
management as of December 31, 2007. 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. All guarantees are based on
the claims-paying ability of AXA Equitable Life Insurance Company.
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 is overseen
by an independent advisory board. GE-43533 (4/08)
http://www.axa-equitable.com/ DATASOURCE: AXA Equitable Life
Insurance Company CONTACT: Jo Ann Tizzano, +1-212-314-2979, , or
Mary Taylor, +1-212-314-5845, , both of AXA Equitable Life
Insurance Company Web site: http://www.axa-equitable.com/
http://www.variableannuityfacts.org/
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