AXA Equitable Announces Annual Re-Sets to Accumulator(R) Series of Variable Annuities
Customers May Be Able to Access More Money Now and During Retirement
NEW YORK, Jan. 16 /PRNewswire/ -- AXA Equitable Life Insurance Co. announced today that it will allow customers with guaranteed living benefits to lock in annual gains in the investment accounts underlying its AXA Equitable Accumulator(R) variable annuity series. Barbara Goodstein, AXA Equitable's Executive Vice President of Marketing and Product Development, said that AXA Equitable will provide a re-set once each year instead of once every five years to certain of its Guaranteed Minimum Income Benefit (GMIB) and Guaranteed Minimum Death Benefit (GMDB) riders. AXA Equitable pioneered living benefits in annuity products in 1996 with the launch of the GMIB, which is designed to offer guaranteed income for life. The Accumulator(R) variable annuity series also allows dollar-for-dollar withdrawals of the 6% compounding income benefit base up to 6% annually prior to electing the guaranteed income for life option. Under AXA Equitable's GMIB for eligible contracts, if the value of the underlying investment account increases due to market gains, customers may re- set the 6% compounding benefit base up to the current account value, from which point compounding continues. This re-set locks in either a higher level of guaranteed future income or a higher withdrawal rate under the dollar-for- dollar withdrawals described above. "Variable annuities with these optional benefits allow consumers to take advantage of the equity market's potential increases while protecting themselves against adverse market conditions. Investing in equities can help consumers potentially build savings that will last throughout a retirement that may continue for 30 years or more," said Goodstein. "AXA Equitable's Accumulator(R) series of variable annuities offers customers a choice of living benefits. The insurance industry alone has the capability to offer guaranteed minimum income and death benefits." The first re-set may take place on the one-year anniversary of the contract. The last re-set may take place on the contract anniversary after the contract owner reaches age 75. The waiting period to exercise the GMIB after each reset will be the later of the contract's original exercise date or 10 years from the last re-set date. The GMIB can not be exercised after age 85. Any withdrawals up to the 6% roll-up to age 85 benefit base as of the beginning of the contract year will result in a dollar-for-dollar reduction in the GMIB and the "greater of" GMDB roll-up benefit bases. Withdrawals that cause cumulative withdrawals in a contract year to exceed that amount will cause a pro rata reduction in the roll-up benefit bases. The annual ratchet benefit to age 85 is always reduced pro rata. The annual re-set is available only to customers who elect the GMIB together with the "greater of 6% roll-up to age 85 or the annual ratchet to age 85" GMDB. It applies to new contracts issued on and after January 16, 2007, in states where it is approved. GMIB, an optional rider, is subject to an additional charge and to additional conditions and limitations. Anyone considering the purchase of an AXA Equitable Accumulator(R) variable annuity should consult with a financial professional and obtain a prospectus containing complete information. About Variable Annuities A deferred 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, which 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 and are not bank guaranteed. Amounts in an annuity's variable investment portfolios are subject to fluctuation in value and market risk, including loss of principal. Typically variable annuities have mortality and expense 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. All guarantees discussed herein are subject to the claims-paying ability of AXA Equitable Life Insurance Company. The guarantees do not apply to the investment portfolios. All benefits and features are not available in all states. Please also consider the charges, risks, expenses and investment objectives of the Accumulator(R) carefully before investing. For a prospectus containing this and other information, please contact your investment professional/licensed insurance agent. Read it carefully before you invest or send money. About AXA Equitable AXA Equitable Life Insurance Company, New York, NY, is the principal life insurance subsidiary of AXA Financial, Inc., providing life insurance, annuities and other needs-based products and services for the financial services market, co-distributed by AXA Advisors, LLC, and AXA Distributors, LLC, New York, NY 10104. AXA Financial is one of the premier U.S. organizations providing financial protection and wealth management, and had approximately $643.4 billion in assets under management as of December 31, 2005. AXA Financial is a member of the global AXA Group, which had $1.3 trillion in assets under management as of December 31, 2005. All guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company (AXA Equitable). GE-38427 (1/07)
SOURCE AXA Equitable
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