BRIGHTLIFE GROW SURVIVORSHIP SERIES 156

Transcription

1 BRIGHTLIFE GROW SURVIVORSHIP SERIES 156 PRODUCT GUIDE IU (6/15) (EXP. 6/17)

2 BRIGHTLIFE GROW SURVIVORSHIP SERIES 156 IU (6/15) (EXP. 6/17) PRODUCT GUIDE T A B L E O F C O N T E N T S BrightLife Grow Survivorship Product Guide... 4 BrightLife Grow Survivorship Key Features... 4 BrightLife Grow Survivorship Series Product At-a-Glance... 6 Policy Charges Deductions from Premium Payments Deductions From the Policy Account Surrender Charge Riders and Endorsements A. Return of Premium Death Benefit Rider (ROPR) B. Cash Value Plus Rider (CVPlus) C. No Lapse Guarantee Rider (NLG) D. Option To Split Policy Upon Divorce Rider (OSD) E. Estate Protector Rider (EPR) F. Living Benefits Rider (LBR) G. Option To Split Policy Upon Federal Tax Law Change Rider H. Loan Extension Endorsement (LEE) I. 2% Interest Guarantee Endorsement Life Insurance Qualification Test & TAMRA Limits Cash Value Accumulation Test (CVAT) Guideline Premium Test (GPT) Maximum Premiums TAMRA 7-Pay Premiums Guideline Premium Limit Premiums Premium Modes Planned Periodic Premium (PPP) Commissionable Target Premium (CTP) Policy Account Cash Surrender Value Net Cash Surrender Value Declared Interest Rate Policy Account Activity Segment Bonus How Interest Crediting Works Segment Mechanics Segment Start Date and Segment Maturity Date Segment Cutoff Date Requirements to Establish a Segment Hierarchy for Deductions During a Segment Term Key Terms Death Benefit Face Amount Limits Death Benefit Options Coverage After Age 121 of the Younger Insured Taxation ii

3 Withdrawals and Policy Loans Withdrawals Of The Net Cash Surrender Value Policy Loans Taxation of Withdrawals and Loans Policy Changes Death Benefit Option Changes Face Amount Changes Tobacco Use Status Change Incentive to Stop Using Tobacco Products Rating Reduction Rider Terminations Tax Disclosure Impact of Policy Changes TAMRA 7-Pay Premiums Policy Lapse Grace Period Policy Restoration Compliance Licensing Illustration Requirements Suitability Consideration for Financial Professionals Minimum Funding Rules Cost Disclosure Notice Buyer s Guide Free Look Period Delivery Period Delivery Receipt Training Requirements Underwriting Issue Ages and Underwriting Classes Underwriting Requirements at Issue Insurance Age Limits Change in Classification Underwriting Amounts for Term Conversions UL to VL Conversion Provision Classified Insurance Flat Extra Charges Glossary of Terms IU (6/15) (EXP. 6/17) iii

4 BRIGHTLIFE GROW SURVIVORSHIP PRODUCT GUIDE BrightLife Grow Survivorship is a flexible premium survivorship universal life insurance product that offers the opportunity for lifetime insurance protection as well as the potential accumulation of cash value through Index- Linked Interest Options. Interest crediting is linked to major market indices, and can provide participation in the upside potential of the equity markets, with full downside protection against market losses. BrightLife Grow Survivorship offers the same benefits historically associated with survivorship universal life insurance. It provides premium flexibility within broad limits with respect to the amount and timing of premium payments. The policy owner can change the Death Benefit Option and decrease the Face Amount to meet changing circumstances. In addition, BrightLife Grow Survivorship clients can allocate premiums to any of eight Indexed Options, as well as a Guaranteed Interest Account. BrightLife Grow Survivorship can be ideally suited for clients with the following characteristics: Issue ages 35 to 60. Couples who want to build cash value with a lower cost joint-life policy. Interested in equity-linked upside, but requires 0% downside floor to limit losses. BRIGHTLIFE GROW SURVIVORSHIP KEY FEATURES BrightLife Grow Survivorship has many of the familiar features of the single-life BrightLife Grow Series 155, as well as benefits traditionally found in survivorship products as outlined below. Plus, Core, and High Participation Indexed Options: BrightLife Grow Survivorship offers a choice of eight Indexed Options; four Core Indexed Options, two Plus Indexed Options, and two Hi-Par Indexed Options. Plus Indexed Options offer a higher Growth Cap Rate available with an additional charge. The Plus Indexed Options offer greater upside potential, but will not perform as well as the Core Indexed Options when equity markets perform negatively or moderately, because the Core Indexed Options do not have a Segment Charge. Hi-Par Indexed Options provide enhanced performance at low or moderate equity return rates by potentially crediting greater than 100% of the S&P 500 return. Indexed Options: Clients have the ability to allocate premiums to the Guaranteed Interest Account (GIA) as well as to the following eight Indexed Options: Core S&P 500 Price Return Indexed Option with 1-Year Segment Term Core MSCI EAFE Price Return Indexed Option with 1-Year Segment Term Core Russell 2000 Price Return Indexed Option with 1-Year Segment Term Core S&P 500 Price Return Indexed Option with 3-Year Segment Term Plus S&P 500 Price Return Indexed Option with 1-Year Segment Term Hi-Par S&P 500 Price Return Indexed Option with 150% Participation Rate and 1-Year Segment Term Hi-Par S&P 500 Price Return Indexed Option with 200% Participation Rate and 1-Year Segment Term Plus S&P 500 Price Return Indexed Option with 3-Year Segment Term Segment Charge for Plus Options: The monthly Segment Charge is 0.5% annually on both a current and guaranteed basis. The Segment Charge for the Plus Indexed Options will be calculated as a percentage of the value of the Plus Indexed Account Segments and will be deducted monthly from the unloaned Policy Account according to the hierarchy rules. Compensation Structure: BrightLife Grow Survivorship offers a two-year rolling target structure, which allows for a longer duration to receive full commission on target premiums (not available in New York and Puerto Rico). The target premium is the same for Death Benefit Options A and B. Issuing Company: This product is issued through MONY Life Insurance Company of America (MLOA) in all jurisdictions except New York and Puerto Rico in order to allow for rolling targets. In New York and Puerto Rico, the product will be issued through AXA Equitable. IU (6/15) (EXP. 6/17) 4

5 Revised - Face Amount Bands: The base policy Face Amounts are banded at $100,000 and $500,000. Commissionable target premiums, current COI charges, and per $1,000 charges are banded. The minimum face amount at issue for policies with CVPlus is $250,000. New Definition of Life Insurance Options: In addition to offering the Cash Value Accumulation Test (CVAT), BrightLife Grow Survivorship will also offer the Guideline Premium Test (GPT). Optional Dollar Cost Averaging: Dollar Cost Averaging (DCA) allows the policy owner to specify a level dollar amount to be transferred to specified Indexed Options on a monthly basis. Premiums are allocated first to the GIA designated for the DCA Service. A minimum balance of $5,000 is needed in the GIA and a minimum of $50 for each transfer is required. DCA can be elected at issue or initiated after issue. New BrightLife Grow Survivorship Supplement: The BrightLife Grow Survivorship Questionnaire, Forms ICC15-MLOA-GSIUL and ICC15-AXA-GSIUL for interstate compact jurisdictions, and MLOA- GSIUL-2015 and AXA-GSIUL-2015 (or state variation) for non-interstate compact jurisdictions, will be used for the owner s selection of the policy s optional benefit riders, and premium allocation percentages. Section A.1, forms ICC15-MLOA-PI2 and ICC15-AXA-PI2 for interstate compact jurisdictions and MLOA-GI (or state variation) for non-interstate compact jurisdictions will be used for the proposed 2 nd Insured Information. These forms are a supplement to the general life application ICC11-AXA-Life and AXA-Life (or state variation). Surrender Charge Period: Similar to the single-life BrightLife Grow Series 155, the surrender charge period for BrightLife Grow Survivorship is 15 years. Additionally, no pro-rata surrender charge will be assessed for Face Amount decreases. Segment Bonus: The Segment Bonus found in single-life BrightLife Grow Series 155 has been incorporated in the BrightLife Grow Survivorship design. The Segment Bonus is calculated as a percentage of the values of the Indexed Account Segments beginning in year 6 for Core and Hi-Par Indexed Options and in year 11 for Plus Indexed Options. No Lapse Guarantee Period: The policy No Lapse Guarantee period is the lesser of 10 years, or to attained age 90 of the younger Insured, if earlier. If the Return of Premium Death Benefit Rider (ROPR) is on the policy, the NLG period is 5 years. The rider is automatically included at no additional charge. Premium Charge: A flat load of 10% is charged to all premiums for year 1 and 2 on both a current and a guaranteed basis. The Premium Charge will decrease to 6% on all premiums paid in years 3+ on a current basis, but will remain at 10% on a guaranteed basis. Death Benefit Option Changes: Any time after the second policy year and before the policy anniversary nearest the younger Insured s age 121, while the policy is in force, the Death Benefit Option may be changed. There is no transaction charge for a Death Benefit Option change. The NLG premium will change with a Death Benefit Option change. Return of Premium Death Benefit Rider (ROPR): The Maximum ROPR Face Amount is one times the initial base policy Face Amount. Riders and Endorsements: BrightLife Grow Survivorship offers a robust array of additional benefit riders and endorsements. o o o o o o o o o Return of Premium Death Benefit Rider (ROPR) Cash Value Plus Rider (CVPlus) No Lapse Guarantee Rider (NLG) Option to Split Policy Upon Divorce Rider (OSD) Estate Protector Rider (EPR) Living Benefits Rider (LBR) (terminal illness) Option to Split Policy Upon Federal Tax Law Change Rider Loan Extension Endorsement (LEE) (GPT policies only) 2% Interest Guarantee Endorsement The No Lapse Guarantee Rider, the Option to Split Policy Upon Federal Tax Law Change Rider, the Option to IU (6/15) (EXP. 6/17) 5

6 Split Policy Upon Divorce Rider, the Living Benefits Rider, the 2% Interest Guarantee Endorsement, and the Loan Extension Endorsement (GPT policies only) are automatically included with the policy. BRIGHTLIFE GROW SURVIVORSHIP SERIES 156 PRODUCT AT-A-GLANCE Feature Type of Policy Gender Minimum Face Amounts $100,000; Maximum Face Amount Description Flexible Premium Survivorship Universal Life Insurance with Index-Linked Interest Options Male, Female, and Unisex. Unisex is required in Montana and for cases subject to ERISA. $250,000 at issue if the Cash Value Plus Rider is elected. Subject to our retention limits and the availability of reinsurance. Issue Ages and Underwriting Classes Underwriting Class Tobacco Use Status Issue Ages 1 Preferred 2 Non-Tobacco User Preferred 2 Tobacco User Standard Plus 2 Non-Tobacco User Standard 3 Non-Tobacco User or Tobacco User Substandard (B, C, D, E, F, G, X) Non-Tobacco User or Tobacco User Backdating is not available to save maximum Issue Age on the base policy. There are lower maximum issue age limits applicable to both lives in combination if either or both insured persons have a substandard letter rating. See Underwriting section for more information. 2. Permanent Flat Extras for aviation, avocation, or occupation are allowed with the Preferred or Standard Plus underwriting classes but are limited to $3.50 per thousand. Temporary Flat Extra Charges are not available with these classes. 3. The maximum issue ages if the Insureds are Standard are 90 for the older insured person and 85 for the younger insured person. Policy Charges Deducted from Premiums Policy Charges Deducted from the Policy Account IU (6/15) (EXP. 6/17) 6 Tobacco and Non-Tobacco User rates are available with each class except Standard Plus, which includes Non-Tobacco User rates only. Premium Charge: A flat load of 10% is charged to all premiums for years 1 and 2 on both a current and a guaranteed basis. The Premium Charge will decrease to 6% on all premiums paid in years 3+ on a current basis, but will remain at 10% on a guaranteed basis. Monthly Per Policy Administrative Charge: Current, non-guaranteed: $10 per month until attained age 121 of the younger Insured Guaranteed: $15 per month until attained age 121 of the younger Insured Monthly Per $1,000 of Face Amount Administrative Charge: Applies to the lesser of the current or initial base policy Face Amount until the 20 th policy anniversary on a current basis. The base policy Monthly Per $1,000 of Face Amount Administrative Charge is based on the younger Insured s issue age and the policy size band at issue. The charge applies for 20 years on a current basis, and

7 Feature Permanent or Temporary Flat Extras Description until attained age 121 of the younger Insured on a guaranteed basis. Cost of Insurance (COI) Charge: Current (non-guaranteed) rates vary by each Insured s issue age, gender, Tobacco-Use status, and underwriting class, and by the policy duration and the base policy Face Amount. Current COI rates for the base policy are banded. Face Amount band break points are set at $100,000 and $500,000. Guaranteed maximum COI rates are not banded. Segment Charge for Plus Options: The monthly Segment Charge is 0.5% annually on both a current and guaranteed basis. The Segment Charge for the Plus Indexed Options will be calculated as a percentage of the value of the Plus Indexed Account Segments and will be deducted monthly from the unloaned Policy Account according to the hierarchy rules. The Preferred and Standard Plus risk classes may not include a Temporary Flat Extra. Permanent Flat Extras for non-medical impairments (aviation, avocation, or occupation) are permitted with the Preferred and Standard Plus risk classes but are limited to $3.50 per thousand. All individual Permanent and/or Temporary Flat Extra Charges assigned to the individual insured persons are actuarially combined into a joint Permanent and/or Temporary Flat Extra Charge each with an appropriate expiration date. Surrender Charges Riders & Endorsements IU (6/15) (EXP. 6/17) 7 Any Flat Extra Charges applied to the base policy Face Amount also apply to the ROPR and EPR Face Amounts, if elected. 15-year surrender charge period. Varies by the gender, Tobacco-User status, and issue age of each of the Insureds. The initial maximum surrender charge is calculated by multiplying the initial base policy Face Amount by the surrender charge rate. Grades down linearly on a monthly basis to zero by the end of the surrender charge period. The following additional benefits are available with the policy, in approved jurisdictions. Refer to the Riders and Endorsements section for terms and availability. Return of Premium Death Benefit Rider (ROPR) Cash Value Plus Rider (CVPlus) No Lapse Guarantee Rider (NLG) Option to Split Policy Upon Divorce Rider (OSD) Estate Protector Rider (EPR) Living Benefits Rider (LBR) (terminal illness) Option to Split Upon Federal Tax Law Change Rider Loan Extension Endorsement (LEE) (GPT policies only) 2% Interest Guarantee Endorsement The following benefits are automatically included with eligible policies, in approved jurisdictions, at no charge: No Lapse Guarantee Rider (NLG) Option to Split Policy Upon Divorce Rider (OSD) Living Benefits Rider (LBR) (terminal illness) Option to Split Upon Federal Tax Law Change Rider

8 Feature No Lapse Guarantee (NLG) Definition of Life Insurance Premiums IU (6/15) (EXP. 6/17) 8 Description Loan Extension Endorsement (LEE) (GPT policies only) 2% Interest Guarantee Endorsement Provides that the policy will not terminate during the NLG period, if the premium requirement for the NLG is met and any policy loan and accrued loan interest does not exceed the Cash Surrender Value. There is no charge for the NLG. NLG period is the lesser of 10 years, or to attained age 90 of the younger Insured, if earlier. If the Return of Premium Rider (ROPR) is on the policy, the NLG period is 5 years. Guideline Premium Test (GPT) or Cash Value Accumulation Test (CVAT). Premiums are flexible. However, in order for the No Lapse Guarantee to remain in effect, a certain level of premiums must be maintained. Premium Payment Modes Direct Billing annual, semi-annual, quarterly, and monthly. Death Benefit Options Policy Changes Indexed Options Systematic quarterly and monthly. Salary allotment annual, semi-annual, quarterly, and monthly. Military allotment monthly. Option A - Level Death Benefit Option B - Face Amount plus Account Value The Death Benefit is always the greater of the amount calculated under the applicable Option and a minimum Alternate Death Benefit. For policies that elect the ROPR, the Death Benefit Option must be Option A at issue. The ROPR Death Benefit increases cease (are frozen) if the Death Benefit Option is changed to Option B. Face Amount Increases not available. Face Amount Decreases may be available after the 2 nd policy year, are subject to approval, and must meet the following conditions: A decrease must be for at least $10,000. We will not allow a decrease that will reduce the base policy Face Amount below $100,000. Death Benefit Option Changes may be available after the 2 nd policy year, but before the policy anniversary nearest the younger Insured s attained age 121. Rider Terminations - Subject to our rules and the terms of the rider. ROPR Changes Subject to our rules and the terms of the rider, the policy owner may submit a request to terminate or reduce the ROPR at any time after policy issue. Monthly deductions for the rider are discontinued or reduced accordingly. Premiums may be allocated among the following Indexed Options, in addition to the GIA: Core S&P 500 Price Return Indexed Option with 1-Year Segment Term Core MSCI EAFE Price Return Indexed Option with 1-Year Segment Term Core Russell 2000 Price Return Indexed Option with 1-Year Segment Term Core S&P 500 Price Return Indexed Option with 3-Year Segment Term Plus S&P 500 Price Return Indexed Option with 1-Year Segment Term Hi-Par S&P 500 Price Return Indexed Option with 150% Participation Rate Hi-Par S&P 500 Price Return Indexed Option with 200% Participation Rate Plus S&P 500 Price Return Indexed Option with 3-Year Segment Term

9 Feature Description Dollar Cost Averaging (DCA) DCA can be elected at issue or initiated after issue. Coverage After Age 121 IU (6/15) (EXP. 6/17) 9 Allows allocation of premiums to the Guaranteed Interest Account (GIA) to be used toward the Dollar Cost Averaging Service (DCA). On a monthly basis, level dollar amounts specified by the policy owner will be transferred to the Holding Accounts then to the specified Indexed Options. Minimum balance of $5,000 in the GIA and minimum of $50 for each transfer required. There is no maturity provision. On a guaranteed and current basis: If the policy is in force and not in grace prior to the policy anniversary nearest the younger Insured s 121 st birthday, the policy will remain in force without further premiums, subject to the loan provision. COI Charges are set to zero on both a guaranteed basis and a nonguaranteed basis. The Monthly Administrative Charges are set to zero on both a guaranteed basis and a non-guaranteed basis. The annual Segment Charge of 0.5% and the Segment Bonus will continue if the client is currently invested in one or more of the Plus Indexed Options. The only transactions allowed are loans and loan repayments, Segment maturities and transfers to the Holding Accounts and to the GIA, new Segments created by rollovers, loan repayments and transfers of GIA loaned account interest annually or upon full loan repayment, and transfer requests from the GIA to the Holding Accounts, among Holding Accounts, and from the Holding Accounts to the GIA. o Premium payments, partial withdrawals, Face Amount decreases, and Death Benefit Option changes will no longer be allowed. Partial Withdrawals Available after the first policy year and before the anniversary nearest the younger Insured s 121 st birthday. Any amount between $500 and the Net Cash Surrender Value may be withdrawn provided the Face Amount is not reduced below $100,000. Withdrawal deductions will be taken from the Policy Account according to the hierarchy rules for all deductions and allocations may not be specified by the policy owner. (See Rules for Deduction Allocations.) AXA reserves the right to establish a 12-month period beginning on the date of any deduction from a Segment for a partial withdrawal, called the Lockout Period, during which time amounts would not be transferred into new Segments. Policy Loans Available any time after issue. The maximum loan value is 100% of the Cash Surrender Value (CSV) less any outstanding loan and loan interest and any amount required to secure an LBR lien. $500 is the minimum amount for new loans. Amounts borrowed remain part of the Policy Account, but are transferred to a special loaned section of the Policy Account. Amounts residing in this loaned section are not available to support monthly deductions or other policy charges. The loaned amounts continue to earn interest, but at a rate that may be different than that for unloaned amounts. The guaranteed minimum interest rate credited to loaned amounts is 2%. Interest earned on the loaned portion of the Policy Account is automatically transferred annually or upon full loan repayment to the

10 Feature Description unloaned portion of the Policy Account. Loan Extension Endorsement: Provides that the policy will not lapse due to an overloan that occurs after the policy anniversary nearest the younger Insured s 75 th birthday (but not earlier than the 20 th policy anniversary), if the policy meets certain criteria. See Loan Extension Endorsement below. Policy loans, both requested and automatic capitalization for unpaid loan interest, are deducted from the Policy Account following the hierarchy rules for all deductions and allocations may not be specified by the policy owner. (See Rules for Deduction Allocations.) Interest earned on the loaned portion of the GIA is automatically transferred annually or upon full loan repayment according to the payment allocations on file. Allocations may be to the unloaned GIA and/or to the Indexed Accounts. AXA reserves the right to establish a 12-month period beginning on the date of any deduction from a Segment for a loan, called the Lockout Period, during which time amounts would not be transferred into new Segments Carryover Loans Permitted as part of a Section 1035 Exchange subject to certain limitations. The loan must not exceed 75% of the initial premium on the new policy and must be supportable by the Cash Surrender Value of the new policy. The carryover loan amount is non-commissionable. Interest Rate Charged and Credited On Loans Premium and Dollar Cost Averaging The policy has an Adjustable Loan Interest Rate (ALIR) provision that is administered on a fixed basis. Interest Rate Charged: 3% for policy years 1 through 10 and 2% thereafter on a current basis. On a guaranteed basis the maximum loan interest rate for a policy year is the greater of 1) 3% or 2) the Published Monthly Average for the month ending two months prior to the policy anniversary. The Published Monthly Average is the monthly average corporate yield shown in Moody s Corporate Bond Yield Average. The loan interest rate for a policy year will never exceed 15%. Interest Rate Credited: Currently 2% for all policy years. Guaranteed minimum rate is 2%. Current spread is 1% for policy years 1 through 10 and 0% thereafter. Guaranteed spread is 1%. May be specified at issue on the BrightLife Grow Survivorship Questionnaire or changed after issue. Rules for Deduction Allocations IU (6/15) (EXP. 6/17) 10 All deductions, including monthly deductions, partial withdrawals, and loans, are processed according to special rules. Deduction allocations cannot be specified by the policy owner, either at issue or otherwise. Deduction allocations will always follow a hierarchical process that is stipulated in the policy: 1. From the unloaned GIA until exhausted, then 2. From the Holding Accounts pro-rata until exhausted, then 3. From all existing Segments pro-rata until exhausted. Segment Bonus The Segment Bonus is calculated as a percentage of the values of the Indexed Account Segments. The Segment Bonus will be credited to the unloaned GIA on a monthly basis. The additional amount credited is determined as a percentage of the values in the

11 Feature Indexed Account Segments. Description The Segment Bonus is non-guaranteed and is not included in guaranteed illustrated values. The Segment Bonus is not guaranteed so it will not be included in current or guaranteed illustrated values in NY. The Segment Bonus will be applied according to the schedule below: Annual Percentage Rate Core / Hi-Par Plus Options Options Years: 0-5 No Bonus No Bonus Years: 6-10 No Bonus 0.25% Years: % 0.75% Years: % 1.10% IU (6/15) (EXP. 6/17) 11

12 POLICY CHARGES Charges associated with a BrightLife Grow Survivorship policy are grouped into three categories in this guide: 1. Deductions from Premium Payments; 2. Deductions from the Policy Account; and 3. Surrender Charges. DEDUCTIONS FROM PREMIUM PAYMENTS A Premium Charge of 10% in years 1-2 and 6% in years 3+ is deducted from all premiums paid on a current basis. A Premium Charge of 10% is deducted from all premiums paid on a guaranteed basis. DEDUCTIONS FROM THE POLICY ACCOUNT The following lists all charges that may be deducted from the Policy Account. The first three charges are charges common to all policies. The last three charges are deducted only as applicable. 1) Monthly Per Policy Administrative Charge 2) Monthly Per $1,000 of Face Amount Administrative Charge 3) Cost of Insurance Charge 4) Permanent or Temporary Flat Extra Charges 5) Rider Costs 6) Segment Charge 1) Monthly Per Policy Administrative Charge Current, non-guaranteed: $10 per month until the younger Insured s attained age 121. Guaranteed: $15 per month until the younger Insured s attained age ) Monthly Per $1,000 of Face Amount Administrative Charge There is a Monthly Per $1,000 of Face Amount Administrative Charge that applies to the lesser of the current or initial base policy Face Amount until the 20 th policy anniversary on a current (non-guaranteed) basis and until attained age 121 of the younger Insured on a guaranteed basis. The charge varies by the younger Insured s issue age and the policy size band at issue. 3) Cost Of Insurance (COI) Charge A Cost of Insurance Charge is deducted monthly for coverage under the base policy. Calculated by multiplying the Net Amount at Risk at the beginning of each policy month by the monthly Cost of Insurance rate applicable at that time. The current (non-guaranteed) COI rates vary by each Insured s issue age, gender, Tobacco-Use status, and underwriting class, and by the policy duration and the base policy Face Amount. The current (non-guaranteed) COI rate bands are at Face Amounts of $100,000 and $500,000. guaranteed maximum COI rates are not banded. COI Charges are set to zero beginning at the younger Insured s attained age 121 on both a current (nonguaranteed) and guaranteed maximum basis. There are current (non-guaranteed) and guaranteed maximum COI rates for male, female, unisex, tobacco user, and non-tobacco user in each underwriting class except Standard Plus which is non-tobacco user only. The guaranteed maximum non-tobacco user COI rates are the same for the Preferred, Standard Plus, and Standard classes. The guaranteed maximum tobacco user COI rates are the same for the Preferred and IU (6/15) (EXP. 6/17) 12 The

13 Standard classes. There are special guaranteed maximum COI rates for substandard classes B, C, D, E, F, G, and X. 4) Permanent or Temporary Flat Extra Charges Permanent and Temporary Flat Extra Charges are deducted monthly. The monthly charge for Flat Extras equals the Flat Extra amount times, $1,000 of base policy Face Amount plus any EPR Face Amount plus any ROPR Face Amount (total Face Amount), divided by 12. For the joint life status, all individual Flat Extra Charges assigned to the insured persons are actuarially combined to provide a single Permanent Flat Extra Charge (if applicable) and a single Temporary Flat Extra Charge (if applicable), each with an appropriate expiration date. Such Flat Extra Charges also apply to the EPR Face Amount and current ROPR Face Amount, if applicable. The Preferred and Standard Plus risk classes may not include any Temporary Flat Extra Charges. Permanent Flat Extras for non-medical impairments (aviation, avocation, or occupation) are permitted with the Preferred and Standard Plus risk classes but are limited to $3.50 per thousand per Insured. The G and X risk classes may not include Permanent or Temporary Flat Extra Charges. A reduction or termination of a Flat Extra before the expiry date is considered a material change under TAMRA and will trigger a recalculation of the 7-Pay Premium and the start of a new 7-Pay Period. 5) Rider Costs Please see section on Riders and Endorsements for the cost of each additional rider available. 6) Segment Charge The annual Segment Charge (0.5% on both a current and guaranteed basis) for the Plus Indexed Accounts will be calculated as a percentage of the value of the Plus Indexed Account Segments (including guaranteed interest) and deducted monthly following the hierarchy rules for the current product. SURRENDER CHARGE Applies for the first 15 policy years. The surrender charge varies by the gender, Tobacco-User status, and issue age of each of the Insureds. The initial maximum surrender charge is calculated by multiplying the initial base policy Face Amount by the surrender charge rate. The surrender charge grades down linearly on a monthly basis to zero by the end of the surrender charge period. IU (6/15) (EXP. 6/17) 13

14 RIDERS AND ENDORSEMENTS The riders and endorsements listed below are available with BrightLife following pages for complete descriptions. Grow Survivorship. Please see the A. Return of Premium Death Benefit Rider (ROPR) B. Cash Value Plus Rider (CVPlus) C. No Lapse Guarantee Rider (NLG) D. Option to Split Policy Upon Divorce Rider (OSD) E. Estate Protector Rider (EPR) F. Living Benefits Rider (LBR) (terminal illness) G. Option to Split Policy Upon Federal Tax Law Change Rider H. Loan Extension Endorsement (LEE) (GPT policies only) I. 2% Interest Guarantee Endorsement A. RETURN OF PREMIUM DEATH BENEFIT RIDER (ROPR) This rider provides an additional Death Benefit (the ROPR Death Benefit) generally equal to the sum of the Specified Percentage of each premium paid less any partial withdrawals accumulated on each policy anniversary at the ROPR Accumulation Rate specified by the policy owner. The Maximum ROPR Face Amount is one times the initial base policy Face Amount. A lesser amount may be specified by the underwriter. If no ROPR Accumulation Rate is specified by the policy owner, the rate will default to zero. Availability ROPR is only available at issue with non-qualified policies that elect Death Benefit Option A. Features ROPR Face Amount The ROPR Face Amount is determined as follows: 1) It has an initial value equal to a percentage of the initial premium paid ranging from 15% up to 100%. The Specified Percentage is chosen at issue and may not be changed after issue; 2) Any subsequent premium payments prior to the policy anniversary nearest the 100 th birthday of the younger Insured will increase the ROPR Face Amount by an amount equal to the Specified Percentage of the premium paid, effective as of the date received at our Administrative Office; 3) Any partial withdrawal of the Net Cash Surrender Value will reduce the ROPR Face Amount by the amount of the withdrawal, but not to less than zero, effective on the date of the withdrawal as specified in the policy; IU (6/15) (EXP. 6/17) 14

15 Cost 4) The ROPR Face Amount is increased on each policy anniversary, up to and including the policy anniversary nearest the 100 th birthday of the younger Insured, to reflect accumulation at the ROPR Accumulation Rate that was in effect during the preceding policy year, taking into account any changes in ROPR Face Amount that took place during such year due to premium payments or partial withdrawals. The increase will take effect only on the policy anniversary and only if the policy is in force at that time; 5) Each request for a decrease in the ROPR Face Amount will reduce the ROPR Face Amount by the amount of requested decrease, but not to less than zero, effective on the policy anniversary that coincides with or next follows the date the request is approved, and; 6) ROPR Face Amount increases either due to premium payments or the application of the ROPR Accumulation Rate will not increase the ROPR Face Amount above the Maximum ROPR Face Amount. ROPR Accumulation Rate The ROPR Accumulation Rate the policy owner chooses can range from 0% (no accumulation) to 6% in whole percentages. The rate will be 0% if no percentage is selected. The initial ROPR Accumulation Rate is shown in the Policy Information section of the policy. Terminating ROPR The policy owner may submit a written request to terminate the ROPR. The termination will be effective on the monthaversary following receipt of the request at the NOC. The rider cannot be added back to the policy after a requested termination. The rider may be restored if the policy is restored after the end of the grace period. It will be subject to the same reinstatement requirements as the policy. Upon reinstatement, the ROPR Face Amount will be equal to the amount at termination plus the reinstatement premium multiplied by the ROPR Specified Percentage of premiums paid, but not more than the Maximum ROPR Face Amount. On each monthaversary we will calculate the cost for the ROPR Death Benefit, including any Flat Extra Charge, and deduct the cost from the Policy Account Value. The Base Policy COI Charge is used in the calculation of the COI charge for the ROPR. Compensation There is no incremental Commissionable Target Premium component for this rider. B. CASH VALUE PLUS RIDER (CVPLUS) The Cash Value Plus Rider provides a surrender charge reduction if the policy is surrendered for its Net Cash Surrender Value in the first eight policy years. In addition, the Cash Value Plus Rider provides a Premium Charge refund equal to a specified percentage of cumulative Premium Charges deducted from the policy, if the policy is surrendered for its Net Cash Surrender Value in the first three policy years. The enhanced surrender benefit provided by the Cash Value Plus Rider is not available for loans, withdrawals, or to support monthly deductions, nor does the enhanced surrender benefit apply to a Face Amount decrease or if the policy is being exchanged to or replaced with another life insurance policy or annuity contract under IRC Section 1035 except in Florida. IU (6/15) (EXP. 6/17) 15

16 The total surrender benefit offered by the Cash Value Plus Rider will be limited by the greater of total premiums paid less partial withdrawals and the Net Cash Surrender Value exclusive of the CV Plus Rider benefit. The Cash Value Plus Rider is an optional feature that may only be elected at issue with qualified and nonqualified policies. The policy must have a minimum Face Amount of $250,000 to elect the rider. The maximum Face Amount is subject to AXA s retention limits and the availability of reinsurance. There is no minimum annualized Planned Periodic Premium requirement to elect this rider. The issue ages for the CV Plus Rider are as follows: The younger Insured s issue age must be Features The Cash Value Plus Rider provides a surrender charge reduction during the first eight policy years if the policy owner surrenders the policy for its Net Cash Surrender Value. The applicable surrender charge for a given policy year will be reduced by a specified percentage as follows: Policy Year % Reduction % 5 80% 6 65% 7 45% 8 25% Cost The surrender charge reduction percentages apply only to a complete surrender of the policy for its Net Cash Surrender Value during the first eight policy years. The surrender charge reduction percentages do not apply: 1) to pro-rata surrender charges resulting from a Face Amount decrease, or 2) if a policy, not issued in Florida, is being exchanged or replaced during the first eight policy years with another life insurance policy or annuity contract under IRC Section There is a $0.04 Monthly Per $1,000 of Face Amount Administrative Charge for the eight year Cash Value Plus Rider benefit period. The charge is deducted monthly from the Policy Account for the first eight policy years or until the rider termination date if earlier. The rider charge is based on the initial Face Amount and does not change upon a Face Amount decrease or Death Benefit Option change. This charge varies on a current and guaranteed basis. Compensation Policies issued with CVPlus have a portion of the first year commission, GDC, PCs, and POP deferred. In addition, there is a four year commission chargeback (recapture) period if such a policy lapses or terminates for any reason other than the death of the surviving Insured. IU (6/15) (EXP. 6/17) 16

17 C. NO LAPSE GUARANTEE RIDER (NLG) Cost BrightLife Grow Survivorship will offer a NLG rider that is automatically included at issue with all policies. There is no cost for this rider. The NLG expires in 10 years, or at attained age 90 of the younger Insured, if earlier, for policies that do not elect ROPR. For policies that elect ROPR, the NLG duration is 5 years. The NLG rider is automatically included at issue with all policies. There is no cost for this rider. Termination of the Rider The NLG rider will terminate at the earliest of the following dates: a) on the date the policy terminates without value at the end of a grace period, is surrendered for its Net Cash Surrender Value, or otherwise terminates; b) on the date the policy is placed on Loan Extension; c) on expiration of the No Lapse Guarantee Period shown on Page 3-Continued of the policy pages; and d) upon the written request of the policy owner. If the policy lapses without a loan and is subsequently restored, the NLG rider can be reinstated. Commissions There is no incremental Commissionable Target Premium component for this rider. D. OPTION TO SPLIT POLICY UPON DIVORCE RIDER (OSD) The Option to Split Policy Upon Divorce Rider enables the policy to be exchanged for two separate permanent individual life policies of equal Face Amounts upon legal divorce. To exercise this rider, a new policy for onehalf the Face Amount of the survivorship policy must be applied for and issued on each Insured. No evidence of insurability is required if the exchange is applied for within 12 months of the date of legal divorce and the date of exchange for each policy is within 24 months following the date of legal divorce. In addition, these conditions must be met: A final divorce decree, issued by a U.S. Court of competent jurisdiction, must be in effect. Evidence of the decree must be received before the date of the exchange. A request to split the current survivorship policy must be in writing, must be signed by the owner/insureds of the current policy, and must be accompanied by a completed application for each Insured. The owner of each new policy must have an insurable interest in the life of the Insured. The split is done on an attained-age basis. Backdating to save age is not allowed. For tax purposes, it is treated like a new purchase. A policy split may be a tax reportable event and should be reviewed by the Tax Unit. It does not qualify for Section 1035 Exchange treatment. IU (6/15) (EXP. 6/17) 17

18 Each Insured must be living on the date of the exchange. The policy must be in force on the date of the exchange and the Insureds must still be divorced on that date. Evidence of insurability for each Insured must be submitted for any additional benefits, including ROPR, on the new policies, if available. If the policy is assigned, the assignee must consent to the exchange in writing. Each new policy may be on any plan that AXA or an affiliated company is issuing on the date of the exchange. (The new policy cannot be a term policy, contain term insurance, or be a joint-life policy.) The register dates of the new policies will be the date of the exchange. Premiums will be based on the rates then in effect for each insured person s attained age and for the same underwriting class of each Insured under the survivorship policy. The new policies will be issued on a unisex basis if the state of delivery requires it. The Face Amount of each new policy will be determined such that the initial Death Benefit will be equal to at least one-half the Death Benefit of the survivorship policy minus any outstanding loan, lien, and accrued interest, on the date of the exchange. One-half of the Net Cash Surrender Value of the survivorship policy will be applied toward the initial premium of each of the new policies. This may result in the new policies becoming Modified Endowment Contracts since the transferred value is not eligible for Section 1035 Exchange treatment. Availability The rider is automatically included at issue, provided neither Insured is rated above Class D or an equivalent rating. The rider is available for male/female and unisex/unisex combinations only. Issue Ages The Option to Split Policy Upon Divorce Rider is available if the older Insured s issue age is between Termination of the Rider The Option to Split Policy Upon Divorce Rider terminates at the earlier of: Cost the date of first death; the policy anniversary nearest the older Insured s 86th birthday; the date the base policy terminates or lapses; or if the request to exercise the rider cannot be processed. There is no cost for this rider. Compensation There is no incremental Commissionable Target Premium component for this rider. E. ESTATE PROTECTOR RIDER (EPR) During the first four policy years, the Estate Protector Rider provides additional insurance payable if both Insureds die. It is intended to cover additional estate taxes due, should policy proceeds be included in the estate if both insured persons die within three years of the trust obtaining or owning the policy (the three year rule ). IU (6/15) (EXP. 6/17) 18

19 The rider benefit is for four years rather than three years to cover situations where there may be a delay in establishing the trust. The maximum amount of coverage provided by the rider is an additional 122% of the base policy Face Amount, except when a lower amount of coverage is requested. 122% is the ratio at which the after-tax proceeds would equal the base policy Face Amount assuming a 55% tax bracket. For example, if the base policy has a Face Amount of $2,000,000, the total Death Benefit payable upon the second death during the first four policy years would be $4,440,000 (the $2,000,000 base policy Face Amount plus the $2,440,000 Estate Protector Rider Death Benefit). Issue Ages and Underwriting Classes The rider may be applied for if neither Insured is rated above Class D or an equivalent rating and the issue age of the younger Insured is age 70 or below. Availability Cost The rider may only be elected at issue. It cannot be cancelled after issue. A monthly charge is deducted from the Policy Account for the additional coverage provided by the rider. The cost for the rider is calculated from the Base Policy COI Rate multiplied by the EPR Face Amount. The EPR COI rates are not less than a specific amount detailed in the Actuarial Specifications. The EPR COI rates vary on a current (non-guaranteed) and guaranteed basis and vary by the issue age, sex, tobacco-user status, and rating class of each Insured, the base policy Face Amount, and the policy duration. The EPR COI rates are banded at base policy Face Amounts of $100,000 and $500,000. Termination of the Rider The Estate Protector Rider will terminate on the earlier of these dates: Compensation 1) Four years from the Register Date of the policy, or 2) The date the policy terminates or lapses. There is an incremental Commissionable Target Premium component for this rider. F. LIVING BENEFITS RIDER (LBR) The Living Benefits Rider allows the policy owner to receive a portion of the policy's Death Benefit if the last surviving Insured is diagnosed as terminally ill with, generally, no more than twelve months to live. Availability The rider is automatically included at issue with all policies, including policies issued in Qualified Plans, unless declined by the policy owner on the application. The Living Benefits Rider is available in all states. Note that there is a new ICC version for policies issued in all current ICC jurisdictions. If the rider is added after issue, evidence of insurability for each Insured is required. IU (6/15) (EXP. 6/17) 19

20 Features The maximum Death Benefit prepayment amount is, generally, the lesser of 75% of the policy s Death Benefit or $500,000. This is an overall amount and applies to all coverage under AXA and its affiliates. The minimum is $5,000. Some of the features (including the maximum prepayment amount allowed) vary by state. Effect of Lien on Policy Values The accelerated Death Benefit payment plus any accrued interest is treated as a lien against the policy values. The amount of the lien is pro-rated against the policy s Net Cash Surrender Value, if any, and the Net Amount at Risk. The Net Cash Surrender Value for this purpose is equal to the greater of (1) the Net Cash Surrender Value of the actual Policy Account, and (2) the Net Cash Surrender Value of the Alternate Policy Account. The lien is deducted from the Policy Account following the hierarchy rule for all deductions and allocations may not be specified by the policy owner. Deductions will be taken first from the unloaned GIA until exhausted, and then on a pro-rata basis from the Holding Accounts for each Indexed Option until exhausted. Any remaining deductions will then be taken pro-rata from all Segments of the Indexed Accounts until all Segments are exhausted without regard to time until Segment Maturity. The portion of the Cash Surrender Value that is on lien and is allocated to Segments of the Indexed Accounts or the Holding Accounts will be transferred to, and maintained as part of, the unloaned portion of the GIA. Termination Cost This rider will terminate when the policy terminates, upon written request by the policy owner, if the policy is placed on Loan Extension, or if at any time the amount of the lien equals the total Death Benefit. If the policy lapses and is subsequently restored, the LBR is reinstated. If no LBR claim has been made, the policy owner may terminate this rider by providing written notice to the National Operations Center. The effective date of termination will be the date that the request is received at the Administrative Office. Once this rider has been terminated, another Living Benefits Rider cannot be attached to the policy. If at any time the amount of the lien equals the total Death Benefit, the policy will terminate. Termination will occur 31 days after we have mailed notice to the last known address of the owner, unless the full amount of the lien is repaid within 31 days of the notice. If LBR is declined at issue and later added, we will charge a $100 administrative fee. We reserve the right to deduct a processing charge of up to $250 per policy from the LBR payment. Compensation There is no incremental Commissionable Target Premium component for this rider. G. OPTION TO SPLIT POLICY UPON FEDERAL TAX LAW CHANGE RIDER IU (6/15) (EXP. 6/17) 20

21 The Option to Split Policy Upon Federal Tax Law Change Rider provides the policy owner with the ability to exchange the policy for two individual life policies without evidence of insurability. The rider can be exercised only if the Federal Tax Law is changed and results in: Availability The reduction of the Federal Estate Tax marital deduction provision; or A reduction in the maximum Federal Estate Tax bracket to a rate below 25%. The rider is automatically included at issue with all policies provided neither insured person is rated above Class D or an equivalent rating and the issue age limits specified below are satisfied. Issue Ages Cost This rider is available if the older Insured s issue age is between There is no additional charge for this rider. Exercise of the Rider To receive the benefit provided by this rider these conditions must be met: A request for the exchange must be made in writing within six months of the first enactment date of either of the Federal Tax Law changes described above. The split is done on an attained age basis. Backdating to save age is not allowed. Each Insured must be living on the date of the exchange. The owner of each new policy must have an insurable interest in the Insured. The BrightLife Grow Survivorship policy must be in force on the date of the exchange, with all premiums due paid. Evidence of insurability must be submitted for any additional benefits, including ROPR, on the new policy, if available. AXA must receive payment of the first premiums for the new policies on or before the Register Dates of the new policies. The same guidelines that are used for the Option to Split Policy Upon Divorce Rider apply for this Rider. Termination of the Rider The Option to Split Policy Upon Federal Tax Law Change Rider terminates: Compensation On the policy anniversary nearest the older Insured s 86th birthday; On the date of first death; or If the base policy lapses or terminates. There is no incremental Commissionable Target Premium component for this rider. IU (6/15) (EXP. 6/17) 21

22 H. LOAN EXTENSION ENDORSEMENT (LEE) This feature, which is only available on GPT policies, provides that the policy will not lapse due to an overloan, if certain conditions are met. The policy will automatically be placed on Loan Extension at the beginning of any policy month starting with the policy anniversary nearest the younger Insured s 75 th birthday, but not earlier than the 20 th policy anniversary, if: the Net Cash Surrender Value of the actual Policy Account and the Net Cash Surrender Value of the Alternate Policy Account are not sufficient to cover their respective monthly deductions then due; the outstanding loan and accrued loan interest exceeds the greater of the current or initial Face Amount; the Death Benefit Option is Option A; the life insurance qualification test is the Guideline Premium Test (GPT); the policy is not on LBR claim; ROPR is not on the policy; the policy is not then in a 61-day grace period; and, no current or future distribution from the policy will be required to maintain its qualification as life insurance under the IRC. If all of the above conditions are met, the Loan Extension Endorsement will automatically be activated. When this occurs, AXA will notify the policy owner and the policy will stay in force and we will take monthly deductions up to the amount in the unloaned Policy Account and waive the balance. When a policy is on Loan Extension: If there is value remaining in any individual Segment of the Indexed Accounts at the time LEE is activated, the Segment Value will be transferred automatically to the unloaned GIA; Any amounts in the Holding Accounts, plus current basis interest credit, will also be transferred automatically to the unloaned GIA; No allocations or transfers to the Indexed Accounts may be made even if the loan is fully repaid; The Index-Linked Credit will not be credited on Segment Maturity even if Segments were in progress prior to the policy being placed on Loan Extension; No new loans may be taken, except for loans made to pay any loan interest that is due; No additional premiums will be accepted; No partial withdrawals may be made; No Death Benefit Option changes may be made; No policy changes may be made; and No Face Amount decreases may be made. The policy owner will continue to be billed for loan interest on each policy anniversary. If the interest is not paid when due, it will be added to the outstanding loan balance. Loan repayments may be made under Loan Extension (although these will not be illustrated in the proposal system). Any payments that are received while the policy is under Loan Extension will be applied as loan repayments. IU (6/15) (EXP. 6/17) 22

23 The Death Benefit under the Loan Extension is the greatest of (a), (b), and (c) where: Availability a) Is the greater of the Policy Account Value or the loan and accrued loan interest on the surviving Insured s date of death, multiplied by the corridor factor; b) Is the loan and accrued loan interest on the surviving Insured s date of death plus $10,000; and c) Is the current base policy Face Amount. This endorsement is automatically included at issue for policies electing the Guideline Premium Test (GPT), including policies with the ROPR rider. However, the LEE will not go into effect if ROPR is on the policy. Once a policy is placed under Loan Extension, it cannot be deactivated. Termination of the Endorsement Cost The endorsement can terminate prior to activation if the policy terminates at the end of a 61-day grace period, or if the policy goes on LBR claim. If the policy is reinstated, the Loan Extension Endorsement will be reinstated. There is no charge for this endorsement. Commissions There is no incremental Commissionable Target Premium component for this endorsement. I. 2% INTEREST GUARANTEE ENDORSEMENT The 2% Interest Guarantee Endorsement provides a minimum accumulation value called the Alternate Policy Account Value. This value is used in addition to the regular Policy Account Value to provide additional protection in certain scenarios: o Adequacy of the policy value to cover monthly deductions to prevent policy lapse, o Cash Surrender Value at full surrender, o Death Benefit, and o Amount available for a policy loan. A. Alternate Policy Account: The Alternate Policy Account is credited with fixed and guaranteed interest at the daily equivalent of 2% annually. Cash Value allocation among Holding Accounts, Segments, and the GIA will not affect the value of the Alternate Policy Account. Monthly deductions taken from the Alternate Policy Account may be different than those taken from the Policy Account. B. Lapse: If the Net Cash Surrender Value is not sufficient to cover the total monthly deductions, policies will not be in default if the Alternate Net Cash Surrender Value is sufficient to cover the monthly deductions from the Alternate Policy Account. C. Full Surrender: If the policy is given up while at least one of the Insureds is living (including for a Section 1035 Exchange), the value received will be the greater of the Net Cash Surrender Value and the Alternate Net Cash Surrender Value. Note: The Alternate Cash Surrender Value will not increase the amount available for a partial withdrawal. IU (6/15) (EXP. 6/17) 23

24 D. Death Benefit: If at the time of the surviving Insured s death the Alternate Policy Account Value is greater than the Policy Account Value, the Alternate Policy Account Value will be used to determine the Death Benefit under the policy. Similarly, if a change in Death Benefit Option is requested, the greater of the Policy Account Value and the Alternate Policy Account Value will be used to determine the new policy Face Amount on the date the change takes effect. The Alternate Policy Account Value will also be used to determine any surrender charges for Face Amount decreases. E. Loan: The value available for a maximum new loan will be the greater of the Net Cash Surrender Value and the Alternate Net Cash Surrender Value. F. Other Endorsements or Riders: The 2% Interest Guarantee Endorsement relates to other endorsements and riders on each policy as summarized in the policy form and/or endorsements/riders. These interactions are only partially reflected in this Product Guide. IU (6/15) (EXP. 6/17) 24

25 LIFE INSURANCE QUALIFICATION TEST & TAMRA LIMITS All life insurance policies must satisfy one of two tests to qualify as a life insurance contract under Section 7702 of the Internal Revenue Code. The policy owner may choose between the Cash Value Accumulation Test (CVAT) and the Guideline Premium Test (GPT). Once elected, the test may not be changed. If no test is selected on the application, the policy will be issued with the GPT test subject to an application amendment (PF 237). If the Policy Account Value is too high relative to the Death Benefit, the Death Benefit will be increased automatically under the terms of the policy to ensure compliance with the selected test. However, AXA reserves the right to require evidence of insurability or limit certain premium payments that, when made, would increase the Net Amount at Risk under the policy. In addition, we may take certain actions to meet the definitions and limitations in the Internal Revenue Code (IRC) based on our interpretation of the IRC. CASH VALUE ACCUMULATION TEST (CVAT) Requires that the Death Benefit be sufficient to prevent the Policy Account Value from ever exceeding the net single premium required to fund the future benefits under the contract. This requirement is met by multiplying the Policy Account Value by a percentage calculated to satisfy the federal tax requirement, and increasing the Death Benefit to this amount whenever necessary. Depends upon the attained age, gender, Tobacco User Status, and underwriting class of each Insured. For the Preferred, Standard Plus, and Standard classes, the Standard CVAT factors are used. The percentages are shown in the policy. CVAT percentages are higher than those for the GPT at all ages prior to attained age 100 of the younger Insured. Generally allows payment of the full non-mec 7-Pay premium in the first seven policy years under Death Benefit Option A, which may not be possible under GPT. Generally results in a rapid increase in Death Benefit when and if the policy hits the corridor due to funding levels or credited interest. One ramification of this extra Death Benefit is a greater Net Amount at Risk and higher corresponding Cost of Insurance charges, which in turn reduce the Cash Surrender Value as compared to the Guideline Premium Test. In cases where later age reductions in benefits or Option B to Option A switches are contemplated, CVAT testing may offer the advantage of avoiding the application of negative guideline premium adjustments to the policy s premium limits. GUIDELINE PREMIUM TEST (GPT) Cumulative premium payments cannot exceed the greater of the Guideline Single Premium (GSP) or the sum of the Guideline Level Annual Premiums (GLAPs). We will refund any premiums received that exceed guideline premium limits. For BrightLife Grow Survivorship, all comparisons of the premiums paid to the Guideline Premiums continue until attained age 121 of the younger Insured, at which time premium payments will no longer be permitted. Guideline Premium recalculations cease at attained age 100 of the younger Insured. A reduction in Face Amount, a change in Death Benefit Option, or a reduction or termination of ROPR or certain riders considered Qualified Additional Benefits under the IRC (QABs) can result in a force-out of previously paid premiums, either at the time of the change or later, but not beyond attained age 100 of the younger Insured. Even if force-outs are not required, reduced or negative guideline limits can in some cases severely limit the allowable premiums that can be paid into the policy. Also imposes a minimum required Death Benefit amount, referred to as a corridor test. That amount is calculated as a percentage multiple of the Policy Account Value. The minimum percentage is determined by the Internal Revenue Code and varies by the younger Insured s attained age. The applicable percentages are shown in the policy. IU (6/15) (EXP. 6/17) 25

26 It generally takes longer for a policy under the GPT test to reach the corridor and could result in higher Cash Surrender Values than under CVAT, especially in the later years. MAXIMUM PREMIUMS AXA reserves the right to limit the amount of any premium payment a policy owner may make when the policy is in corridor. If at any time the Policy Account Value is high enough to put the policy in the corridor, we reserve the right to limit the amount of premiums paid. If the Guideline Premium Test (GPT) is chosen at issue as the Life Insurance Qualification Test, premiums cannot exceed the Guideline Premium Limit, which is described below. TAMRA 7-PAY PREMIUMS If, based upon AXA s understanding of current law, we receive a premium payment that would result in a policy becoming a MEC, our procedure is to return the excess premium to the policy owner unless the policy owner signs a MEC Acknowledgment Form. For additional information, please refer to TAMRA 7-Pay Premiums section in the Tax Disclosure section. GUIDELINE PREMIUM LIMIT Under federal tax law, premiums cannot exceed a maximum amount known as the Guideline Premium Limit in order for a policy to qualify as life insurance. The Guideline Premium Limits are policy specific. There are certain policy changes that affect these limits. A decrease or termination of benefits or Face Amount decrease or change in Death Benefit Option could cause a force-out of previously paid premiums to the policy owner. This force-out could occur at the time of the change or later, but not beyond attained age 100 of the younger Insured. A force-out of premiums will be required only if premiums paid less non-taxable withdrawals exceed the recalculated Guideline Premium Limits, especially when the recalculated GSP or GLAP is negative. IU (6/15) (EXP. 6/17) 26

27 PREMIUMS BrightLife Grow Survivorship is a flexible premium survivorship universal life insurance policy. The policy owner decides the amount and timing of premium payments, within certain limits. After the Minimum Initial Premium payment is paid, there are no required premiums. Otherwise, with a few exceptions mentioned below, premium payments may be made at any time and in any amount. This flexible premium structure allows policy owners to design a premium stream, which they can alter to take advantage of changes in the economy or in their personal financial situations. The policy provides for a No Lapse Guarantee (NLG) if certain premium levels are maintained and any policy loan and accrued loan interest does not exceed the greater of the Cash Surrender Value (CSV) and Alternate Cash Surrender Value. PREMIUM MODES Premiums may be paid at any time up until attained age 121 of the younger Insured. All payments are applied as premium payments, except for grace payments when the policy has a loan, if Loan Extension is in effect, or if the policy owner specifies that the payments should be applied as loan repayments. Policy owners may also request to not be billed for premiums either at issue or at any time after issue, up to the younger Insured s attained age 121. PLANNED PERIODIC PREMIUM (PPP) The minimum is $100 for all modes, except for requests for no billing. COMMISSIONABLE TARGET PREMIUM (CTP) We will pay first year compensation up to the CTP on premiums received during the first policy year, regardless of the Planned Periodic Premium (PPP). Note that commissions are paid on a rolling target premium basis with this product. The rolling target premium allows first year up to target compensation on premiums received in policy year 2, if the first year premium did not reach the target premium level. During the second policy year, first year up to target compensation will be paid until total premium equals first year target premium, after which all remaining dollars will get the renewal year compensation. There is a different commission schedule for policies that include CVPlus. The CTP is determined at issue and varies by each Insured s issue age, gender, Tobacco-User status, underwriting class, and the initial base policy Face Amount. Permanent Flat Extras and substandard letter ratings are included in the CTP, and are therefore compensated at the full first year rate. Temporary Flat Extras are not included in the CTP. An incremental target amount for the Estate Protector Rider is added to the base target premium to determine the total CTP. There is no incremental target premium for any other rider offered on this product. IU (6/15) (EXP. 6/17) 27

28 CASH SURRENDER VALUE POLICY ACCOUNT For the first 15 policy years after issue, the Cash Surrender Value equals the Policy Account Value, less the applicable surrender charge. Thereafter, the Cash Surrender Value is equal to the Policy Account Value. If there is a Living Benefits Rider lien on the policy, the amount required to secure the lien is a pro-rata portion of the Cash Surrender Value based on the proportion of the Cash Surrender Value to the previous Death Benefit. The amount of the Cash Surrender Value required to secure any outstanding loan or LBR lien is not available for loans or partial withdrawals. NET CASH SURRENDER VALUE The Net Cash Surrender Value is the Cash Surrender Value less any loan and accrued loan interest and less any LBR lien and accrued lien interest. This is the amount the policy owner receives if the policy is surrendered. DECLARED INTEREST RATE At policy issuance and periodically thereafter, AXA declares the interest rates that will apply to the GIA. There is no guarantee period for declared interest rates. Declared rates can be changed at any time. A minimum interest rate of 2% (effective annual rate) is guaranteed. New business interest rates and renewal interest rates may be different as well as the interest rates for loaned and unloaned amounts. POLICY ACCOUNT ACTIVITY As each premium is received, the Premium Charge is deducted. The balance, the Net Premium, is credited to the Policy Account as of the date that it is received at our Administrative Office. In the case of the initial premium, the credited date is the later of the Register Date or the date the full MIP is received at the Service Center. At the beginning of each policy month, starting on the Register Date, deductions are made from the Policy Account to cover applicable charges. At the beginning of each month following the Register Date, the loaned and unloaned policy accounts are credited with interest for the prior month. Portions of Net Premiums may be contributed to the Indexed Accounts and the GIA. Premium allocation instructions are specified on the application. The policy owner may change the allocation instructions at any time. AXA reserves the right to place limitations on the policy owner s ability to contribute premiums to Segments. Monthly deduction allocations cannot be specified, and will instead follow the hierarchy rules described on page 34. SEGMENT BONUS A Segment Bonus will be calculated as a percentage of the values of the indicated Indexed Account Segments. The Segment Bonus will be applied according to the schedule below: IU (6/15) (EXP. 6/17) 28 Annual Percentage Rate Plus Options Core / Hi-Par Options Years: 0-5 No Bonus No Bonus Years: 6-10 No Bonus 0.25% Years: % 0.75%

29 Years: % 1.10% The Segment Bonus will be credited to the unloaned GIA on a monthly basis. The Segment Bonus is nonguaranteed and is not included in guaranteed illustrated values. The Segment Bonus is not guaranteed and therefore will not be illustrated in NY. HOW INTEREST CREDITING WORKS The Indexed Account of BrightLife Grow Survivorship can deliver upside potential based on equity market movements without the downside typically associated with equity markets because of the beneficial way the Indexed Account s interest credits are calculated. The following diagram shows how the interest crediting works visually: C UP TO BUT NOT LESS THAN A B D E A. Index Performance Rate A simple Point-to-Point Method is used to determine the Index Performance Rate for each Indexed Account Segment. This is the difference between the index s value at the beginning and end points of the 1-year or 3-year Segment, expressed as a percentage increase or decrease. B. Participation Rate The Participation Rate determines what percentage of the Index Performance Rate will be used in the calculation of the Index-Linked Credit on the Segment Maturity Date. With BrightLife Grow Survivorship, the Participation Rate is guaranteed to be at least 100%. The current and Guaranteed Minimum Participation Rates may vary for each Segment of each Indexed Option. C. Growth Cap Rate The Growth Cap Rate establishes an upward limit on the rate of return the Indexed Account can credit over each 1-year or 3-year Segment. Growth Cap Rates are subject to change until the Segment Start Date, and the current Growth Cap Rates may vary for each Segment of the Indexed Accounts. The Guaranteed Minimum Growth Cap Rate is currently 3% for each of the Core and Hi-Par 1-year Indexed Options (3.5% for the Plus Indexed Options), and 10% for the Core 3-year Indexed Option (11.5% for the Plus 3-year IU (6/15) (EXP. 6/17) 29