Retirement Cornerstone

Transcription

1 Retirement Cornerstone variable annuity Variable Annuities: Are Not a Deposit of Any Bank Are Not FDIC Insured Are Not Insured by Any Federal Government Agency Are Not Guaranteed by Any Bank or Savings Association May Go Down in Value AXA Equitable Life Insurance Company (NY, NY)

2 variable annuity taking control of my future section 1 Retirement Cornerstone variable annuity Protected Benefit Account

3 AXA Equitable: Part of the Global AXA Group #1 Global Insurance Brand for the 5th consecutive year. Interbrand Ranking, Best Global Brands 2013 Your relationship with AXA Equitable is built against the backdrop of a premier industry leader. AXA Group and its companies have a long-standing history of providing insurance and investment strategies worldwide history that translates into the flexibility to adapt to changing economic climates, globally or nationally. AXA Equitable has sole responsibility for its annuity and life insurance obligations. Table of Contents Section 1 Today s Retirement Challenges 2 The Inflation Challenge 4 Guaranteed Income in All Markets 7 Protected Benefit Account Facts 8 Protection for Your Beneficiaries 11 Investing Your Way 12 Section 2 Growth Potential 1 Investment Flexibility 2 Your Investment Choices 3 Putting It All Together 4

4 AXA Equitable: More Than 150 Years of Promises Kept Since 1859, AXA Equitable has stood among the nation s premier providers of life insurance and annuity products. While AXA Equitable has grown considerably over the decades, it has not lost sight of a fundamental commitment: helping people build sound financial futures through honesty, integrity, trustworthiness, and innovative financial strategies. AXA Group 1 Presence: Major operations in Western Europe, North America, and the Asia/Pacific region Operations in 57 Countries million individual and corporate clients worldwide 2 Experience: AXA was ranked the world s #1 insurance brand for the fifth year in a row in $1.5 trillion in Assets Under Management 4 AXA Equitable s assets under management totaled $548.6 billion as of 12/31/ AXA Group refers to AXA S.A., a French holding company for a group of international insurance and financial services companies, together with its direct and indirect consolidated subsidiaries. AXA Equitable Life Insurance Company (AXA Equitable) (NY, NY) is a subsidiary of AXA Financial, Inc., a member of the global AXA Group. 2 The AXA Group At-A-Glance, Interbrand. Best Global Brands Assets under management in $ as of 12/31/13 based on closing exchange rate of Euro 1 = $ Figure is 1.1 trillion in Euros. AXA is based in France where the official currency is the Euro. 5 AXA Equitable s assets under management are inclusive of assets under management held by an affiliate, Alliance Bernstein L.P. AXA Equitable has sole responsibility for its annuity and life insurance obligations. lorem ipsum dolor sit amet consectetur adipiscing elit nam 1 Keeping Promises: a commitment to customers is and always has been AXA Equitable s guiding principle.

5 today s retirement challenges Saving for retirement involves careful planning. It s important to prepare yourself for challenges you may encounter. And you should understand these challenges so you can find the right solutions. Challenges/Solutions Longevity People are living longer and longer. You may need to plan for a year retirement. A Solution: Have a guaranteed stream of income for a retirement that could last 25 years or more. Inflation No one can know for sure where inflation rates are headed. But the bottom line is that each year the same amount of money buys a little less, and even moderate rates of inflation can severely erode the future purchasing power of your hard-earned retirement dollars. A Solution: Account for inflation by investing for growth potential. If the annual inflation rate is 3.5% hypothetically, and you need $6,000 a month to live on today, you will need $10,000 a month in just 15 years! Volatility Market losses that substantially reduce your retirement savings especially when you re close to retirement could dangerously reduce your retirement income potential. A Solution: Look for some retirement income guarantees, flexible growth opportunities, and volatility protection. Interest Rates Interest rates are at historic lows, potentially reducing growth on retirement savings. A Solution: Be ready to take advantage of more attractive interest rates as they rise. Taxes The cost of annual taxes can quietly eat away at your net returns, and significantly erode investment earnings. A Solution: Keep your savings and investment earnings tax-deferred until withdrawn. 2 today s retirement challenges

6 Retirement Cornerstone : Important Information A deferred variable annuity, such as Retirement Cornerstone, is a long-term financial product designed for retirement purposes. It 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 offer tax-deferred growth potential and optional features such as living and death benefits. Guarantees are based on the claims-paying ability of the issuing company. Withdrawals from an annuity contract are taxable as ordinary income and, if made prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals may also be subject to withdrawal charges. Amounts invested in an annuity s portfolios are subject to fluctuation in value and market risk, including loss of principal. There are fees and charges associated with a variable annuity contract, which include, but are not limited to, operations charges, sales and withdrawal charges, administrative fees, and additional charges for optional benefits. See the prospectus for complete details. The Retirement Cornerstone variable annuity contains two distinct accounts within a single tax-deferred product: one account, the Investment Account, offers an extensive selection of over 100 investment portfolios from well-known investment managers, and the other account, the Protected Benefit Account, offers a focused selection of investment portfolios, which fund the Guaranteed Minimum Income Benefit (GMIB) and the Guaranteed Minimum Death Benefit (GMDB). The GMIB, which is optional and available for an additional fee, ensures that you will be able to generate lifetime income no matter how your investment portfolios perform, and no matter how long you live, as long as you stay within certain withdrawal guidelines. As your needs change over the years, you can simply transfer assets from the Investment Account to the Protected Benefit Account until the later of through age 70 or through 80 or the first contract anniversary date, depending on the benefit election. If you elect GMIB with Greater of GMDB, contributions and/or transfers to the Protected Benefit Account are permitted only up through age 70. Transfer is allowed up through age 80 for Highest Anniversary Value and Return of Premium Death Benefit and up through age 70 for contracts with the Greater of GMDB. For the RMD Wealth Guard GMDB, transfers are allowed up through age 70 or the first RMD withdrawal. Transfers from the Protected Benefit Account to the Investment Account are not allowed. If you are purchasing an annuity contract to fund an Individual Retirement Annuity (IRA) or employer-sponsored retirement plan, you should be aware that such annuities do not provide tax-deferral benefits beyond those already provided by the Internal Revenue Code. Before purchasing one of these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities with any other investment that you may use in connection with your retirement plan or arrangement. today s retirement challenges 3

7 Savings Growth During Retirement Historically, equities have provided investors with growth potential for long-term retirement savings. In fact, during the 33 years from 1980 to 2013, the S&P 500 had gains 76% of the time. 7 Despite the majority of positive returns, it is clear that you can t always rely on equities to grow your retirement savings. You will need other ways to ensure that your retirement income has the potential to outpace inflation and rise, even if the equity market does not. Where Do You See Interest Rates Going? Since 1962, the U.S. 10-Year Treasury has outpaced inflation by an average of 2.64%. 8 As depicted by the graphic below, recent inflation and interest rates (reflected by the 10-Year Treasury note) have been significantly below average. With these rates at all-time lows, it is reasonable to assume that they may start to return to their historic averages. It is important that at least some of your retirement portfolio has the opportunity to rise along with these potentially rising rates. 15% 10-Year Treasury Note Inflation (CPI-U) 10% 5% 0% Historical trends may not continue in the future. Annual 10-Year Treasury Yields in more detail % The 10-Year Treasury has been below 4% a mere 7 times in 50 years. What does this mean? Where rates are today is not the norm % % % % % % % % % % % % % % % % % % % Since 1963, rates have been above 4% almost ninety percent of the time. Source: % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % < 2% 2 4% 4 6% 6 8% 8% 10% > 10% 7 S&P 500: FRED, Federal Reserve Bank of St. Louis. S&P 500 Index (Compounded Annual Rate of Change). Retrieved November The S&P 500 is an index of 500 stocks weighted by market value. Its performance is thought to be representative of the stock market as a whole. Past performance is no guarantee of future results. Individuals cannot invest directly in an index. 8 the inflation challenge 5

8 Retirement Cornerstone It takes more than a single solution to overcome the challenges of saving for retirement because your goals and strategies may change over time. Retirement Cornerstone provides solution flexibility by offering two distinct approaches to retirement planning growth potential and income protection in a single product. The Solution Flexibility of Retirement Cornerstone Protected Benefit Account Potential Inflation Protection Guaranteed Income for Life Wealth Transfer Options Tax Deferral Investment Account Growth Potential Investment Flexibility Access to Investment Options Tax Deferral One Product. Two Accounts. Flexible Solutions. Choose to invest in either account, or choose a combination of both, based on your individual investing preferences, risk tolerance, and savings strategy. 6 the inflation challenge

9 guaranteed income in all markets with Retirement Cornerstone s Protected Benefit Account Once you re retired, it s important to have access to a reliable stream of income. You ll want to protect that stream by making sure your income has the potential to reliably outpace inflation, regardless of market conditions. Retirement Cornerstone offers 2 optional Guaranteed Minimum Income Benefits (GMIB), available at an additional cost. For more detailed information and for specific New York variations, see Protected Benefit Account Facts on the next page. The optional Guaranteed Minimum Income Benefits (GMIBs) have a combination of strong income protection and flexibility: Offering flexible roll-up rates tied to the U.S. 10-Year Treasury rates, which provide the opportunity to increase your income if interest rates rise even if the market goes down! Guaranteed lifetime income no matter how your investments perform (within certain withdrawal guidelines.) GMIB Two-Year Lock Designed for investors looking for a shorter-term lock-in rate which applies in the first two contract years. Beginning with the third contract year, your roll-up rates are variable with guaranteed annual benefit base growth as high as 8% and never below 4%, tied to the 10-Year Treasury. GMIB Multi-Year Lock (new option!) Designed for investors looking for a longer term lock-in rate which applies for the length of the initial period in which withdrawal charges may apply. If the formula rate should exceed the lock-in rate in any year during this period, you will receive the higher formula rate that is tied to the 10-Year Treasury. The income you receive from your GMIB is calculated using your Benefit Base until you reach age 95. A benefit base is used to generate a minimum income amount or withdrawal amount and is not a cash value. It is equal to the initial contribution into the Protected Benefit Account investment options and increases annually at a specified rate, called a roll-up rate. After the length of the initial contract withdrawal charge period (will vary by series) elapses, your roll-up rates are variable with guaranteed annual benefit base growth as high as 8% and never below 3%, tied to the 10 Year Treasury. Note: During the inital period in which withdrawal charges may apply, you will receive the greater of either the initial lock-in rate or the formula rate that is tied to the 10 Year Treasury so that you will be able to take advantage of potential interest rate rises. Protect Your Income T +1% GMIB Roll-Up T +2% Contribution Years T +2% Lock In Your Investment Gains Hypothetical Account Value The GMIB lets you capture market gains in your benefit base through annual resets in up markets. If your Protected Benefit Account Value is higher than your benefit base on any contract anniversary, you can reset your benefit base to equal your Protected Benefit Account Value. Annual increases to your benefit base will continue compounding from this new, higher value. T +1% 10-Year Treasury plus 2% Deferral Roll-Up (T+2%) 10-Year Treasury plus 1% (T+1%) Resets Annual Withdrawal guaranteed income in all markets 7

10 Retirement Cornerstone Protected Benefit Account Facts Other Important Facts Guaranteed Minimum Income Benefit (GMIB) Rider GMIB guarantees lifetime payments when you annuitize the GMIB Benefit Base after the specified waiting period (generally at the 10th or later contract anniversary following when you first fund the GMIB). Resets You are eligible for resets until age 95 on the GMIB, and to age 85 on the Greater of Death Benefit. Note that a reset may extend the GMIB exercise date. You will be enrolled in an automatic annual reset program at the time of application unless a different reset option is selected. Once the benefit base is reset, a new waiting period to exercise the GMIB will apply from the date of reset but will never be later than age 95. As a result of a reset, the total dollar amount charged on future contract date anniversaries may increase since the charges may be applied to a higher benefit base. Annual Withdrawal Amount Your Annual Withdrawal Amount is available to you unless your Protected Benefit Account value falls to zero. At that point, the GMIB is exercised automatically if the No-Lapse Guarantee is in effect. Early or Excess Withdrawals Taking a withdrawal from the GMIB during the first contract year after funding the benefit (an early withdrawal ) or taking a withdrawal greater than the Annual Withdrawal Amount (an excess withdrawal ) in any given year may have an adverse effect on income guarantees, reducing your benefit base pro rata and potentially cancelling the No-Lapse Guarantee. Early Withdrawals do not cancel the No-Lapse Guarantee. Pro Rata, or Proportionate, Adjustments A pro rata adjustment or reduction reduces the benefit base by the same percentage that the Protected Benefit Account Value is reduced by the withdrawal. Therefore, the amount of a pro rata reduction may be greater or lesser than the dollar amount of the withdrawal. If an excess withdrawal reduces the Protected Benefit Account Value to zero, the GMIB will terminate. GMIB Rider Fee The GMIB rider fee is 1.15% (2.30% maximum) of the benefit base deducted from the Protected Benefit Account Value on each contract anniversary. AXA Equitable has discretion to change the rider fee level after the first two contract years within the minimum/maximum. The Guaranteed Minimum Income Benefit can be dropped without penalty or exercised if the fee is increased. New York Variations If the initial funding age is 20 49, there is a 350% cap on the benefit base. A reset at age 50 or older eliminates any benefit base cap. Withdrawals do not reduce the cap. The Greater of" GMDB and RMD Wealth Guard GMDB are not available. 8 lorem Protected ipsum Benefit dolor Account sit amet facts consectetur adipiscing elit nam

11 four market scenarios, one potential solution Retirement Cornerstone is designed to offer you growth potential, inflation protection potential, and guaranteed lifetime income in all market scenarios. You can feel confident regardless of which way the equity market or interest rates go. interest rates if interest rates go down if interest rates go up market if the market goes up Upsidede Market Potentiaial Annual GGMIB Resets to Age 9e 95 Guaranteed Annual Benefit Base Growth Guaranteed Minimum Income for Life Upside Market Potential Annual GMIB Resets to Age 95 Up to 8% Annual Benefiit Base Growth Guaranteed Minimum Income for Life if the market goes down Guranteed Annual Benefit Base Growth Guaranteed Minimum Income for Life Up to 8% Annual Benefiit Base Growth Guaranteed Minimum Income for Life * Depending on the GMIB election. Protected Benefit Account facts 9

12 The GMIB Before You Start Taking Income If you elect the GMIB, your benefit base will compound annually by the Deferral Roll-Up Rate average of 10- Year U.S. Treasury rates plus 2% until you start taking withdrawals. That means more income when you elect to take it because your benefit base will be higher. The longer you defer taking withdrawals, the longer you can benefit from the Deferral Roll-Up Rate. The GMIB After You Start Taking Income The Protected Benefit Account s GMIB feature, after the first contract year of funding, lets you start, change, or even stop withdrawals on your terms. Once you ve taken any withdrawals, even in the first year of funding, the Annual Roll-Up Rate average of 10-Year U.S. Treasury rates plus 1% will apply. Sustainable Income You Can t Outlive Your Annual Withdrawal Amount is your Annual Roll-Up Rate times the Beginning-of-Year Benefit Base. If you withdraw your full Annual Withdrawal Amount, the value of your benefit base will stay the same at the end of the contract year. You may withdraw more than the Annual Withdrawal Amount if you want, although this will affect your benefit base and reduce your income benefit. Your Annual Withdrawal Amount is added to the benefit base at the end of the contract year if no withdrawals are taken. $100,000 benefit base compounds at 4% $4,000 $100,000 purchase payment = initial benefit $100,000 x (3% + 1%) $4,000 $100,000 + $4,000 $104,000 $100,000 You withdraw 4% $104,000 - $4,000 $100,000 $100,000 Lifetime income and death benefit based on $100,000 benefit base The 10-Year U.S. Treasury rate used in this example is 3%. This is hypothetical and for illustrative purposes only. Actual roll-up rates will be based on the 10-Year Treasury rate at the time the annual increase is credited. Example assumes withdrawal is not in the first year of funding. If You Don t Take It, You Make It Imagine you elect the Two-Year Lock GMIB, which guarantees annual benefit base growth 4%-8%. If your roll-up rate is 4% but you withdraw only 3% during the contract year, the remaining 1% is credited to your benefit base. $100,000 GMIB Benefit Base x 4% $3,000 Withdrawal Grow benefit base $101,000 GMIB Benefit Base Income your way for life $1,000 less than allowable $4,000 Annual Withdrawal Amount 10 Protected Benefit Account facts

13 protection for your beneficiaries The Protected Benefit Account includes a Guaranteed Minimum Death Benefit (GMDB). You can select one of four death benefit options to provide the level of protection you think best for your family or other beneficiaries. Option 1: Protect Your Legacy in Up and Down Markets Elect the Greater of Death Benefit and enhance your death benefit with some of the same growth protection features as the GMIB. Your beneficiaries death benefit will equal the greater of either your benefit base with roll-up rate increases like the GMIB or the highest Protected Benefit Account Value achieved on a contract anniversary, until you reach age 85. You must elect the GMIB to take advantage of this option. The benefit will be adjusted for any withdrawals you take. There is an additional fee for the Greater of Death Benefit. After the first two contract years, AXA Equitable has the discretion to change the current fee on existing contracts within the range specified in your contract. The Greater of Death Benefit is not available in New York. Option 2: Lock In Investment Gains If you elect the Highest Anniversary Value Death Benefit, you can lock in your beneficiaries death benefit so it equals the highest Protected Benefit Account Value achieved on a contract anniversary, until you reach age 85. The benefit will be adjusted for any withdrawals you take. There is an additional fee for the Highest Anniversary Value Death Benefit. Option 3: Preserve Your Principal The Return of Principal Death Benefit can help you preserve your principal for your beneficiaries, at no additional charge. Your beneficiaries will receive at least the return of contributions and transfers you made to your Protected Benefit Account. The benefit will be adjusted for any withdrawals you take. Option 4: Pass on More to Your Legacy Elect the RMD Wealth Guard Death Benefit and your benefit base will increase to equal your highest Protected Benefit Account Value achieved on a contract anniversary until the earlier of either your 1st RMD withdrawal or the contract anniversary date after age 85. Beginning in the calendar year in which you reach age 70½, any withdrawals will count toward a client s RMD amount which will not reduce the RMD Wealth Guard GMDB benefit base. This way, more of your legacy will remain in the death benefit value to later be passed on to your beneficiaries. There is an additional fee for the RMD Wealth Guard GMDB. After the first two contract years, AXA Equitable has the discretion to change the current fee on existing contracts within the range specified in your contract. The RMD Wealth Guard GMDB is not available in New York. Preserve your legacy Resets Greater of Death Benefit Highest Anniversary Value Death Benefit Contribution Hypothetical Account Value Return of Principal Death Benefit Years protection for your beneficiaries 11

14 investing your way The Protected Benefit Account combines the ease of one-stop investing with a flexible, focused investment lineup to meet your goals and risk tolerance. One-Stop Investing With seven investment portfolios ranging from conservative to aggressive, the Protected Benefit Account offers you an easy way to diversify your investment mix. AXA Conservative Strategy Portfolio 20% Equity 80% Fixed-Income AXA Conservative Growth Strategy Portfolio 40% Equity 60% Fixed-Income AXA Balanced Strategy Portfolio 50% Equity 50% Fixed-Income AXA Moderate Growth Strategy Portfolio 60% Equity 40% Fixed-Income AXA Growth Strategy Portfolio 70% Equity 30% Fixed-Income AXA Aggressive Strategy Portfolio 80% Equity 20% Fixed-Income Most Conservative Most Aggressive Large Cap Mid Cap Fixed-Income International Small Cap EQ/AllianceBernstein Dynamic Wealth Strategies Portfolio Long-Term Allocation 60% Equity 40% Fixed-Income The AXA Strategic Allocation Portfolios are well-diversified funds of funds, designed to fit various investment objectives and risk tolerances. Each portfolio is diversified across major asset classes as well as investment styles and market capitalizations. Enjoy the ability to invest in a more aggressive portfolio that provides 80% equity exposure. The EQ/AllianceBernstein Dynamic Wealth Strategies Portfolio seeks to reduce volatility and limit downside risk, without sacrificing long-term growth. Simply select the portfolio or portfolios that match your personal investment style and risk tolerance. AXA Equitable does the rest, rebalancing each portfolio as necessary to maintain its target allocations. 12 investing your way

15 A Layer of Protection The Asset Transfer Program (ATP) within the Guaranteed Minimum Income Benefit (GMIB) is designed to help us manage the risk associated with protecting the value of your guaranteed retirement income during extended periods of poor account performance. Although this layer of protection cannot prevent investment losses, it could lessen your losses during market downturns. Participation in the Asset Transfer Program is required if the GMIB is elected. Preserving Your Guarantee The ATP can help preserve your guarantee and related income by reducing your exposure to losses during extended down markets. It is possible, however, that you may miss a market recovery during the period your funds are allocated to the AXA Ultra Conservative Strategy portfolio. How It Works Each month, starting after you fund the Protected Benefit Account, AXA Equitable looks at the difference between your Protected Benefit Account Value and your GMIB Benefit Base to calculate a contract ratio. The ATP is triggered if your contract ratio is too large that is, if your Protected Benefit Account Value is more than a certain percentage below the value of your benefit base. This percentage is called the ATP transfer point. Once your contract ratio exceeds the ATP transfer point and the ATP is triggered, a portion of your Protected Benefit Account Value is transferred automatically into the AXA Ultra Conservative Strategy portfolio. This fund targets a 90% fixed-income and 10% equities investment mix, and is solely used as part of the Asset Transfer Program. It is not an optional investment selection. If your account value increases and sufficiently reduces the contract ratio, portions of your Protected Benefit Account Value in the AXA Ultra Conservative Strategy portoflio may move back into your selected Protected Benefit Account investment options. If you are taking income from the GMIB, your account value will be reduced by the dollar amount of each withdrawal. The difference between the account value and the benefit base may grow, and possibly increase the likelihood that a transfer will occur. The ATP Transfer Point The ATP transfer point starts at 15% in the contract year in which your Protected Benefit Account is first funded and increases by 3% over the course of each ATP Year, until it reaches 45% or your 10th ATP Year anniversary. It does not increase after that. If your contract ratio reaches 10% over the ATP transfer point, 100% of your Protected Benefit Account value is moved into the AXA Ultra Conservative Strategy portfolio. The ATP Transfer Point Increases by 3% Each ATP Year ATP Year Anniversary 1st Day of ATP Year ATP Transfer Point 15% 18% 21% 24% 27% 30% 45% ATP transfer points are prorated throughout the year at a rate of 0.25% per month. For example, the ATP transfer point after the first ATP Year anniversary is 18%, but three months later it is approximately 18.75%. Annual Exit Option Once each ATP Year, you can move everything in the AXA Ultra Conservative Strategy portfolio back into the Protected Benefit Account investment allocations you have on file. Partial Transfers are not permitted 100% of the AXA Ultra Conservative Strategy portfolio must be transferred. Taking advantage of this option, however, will reduce the value of your income benefit. 9 9 Not permitted in the contract year in which the Protected Benefit Account is first funded. Available up to the contract anniversary following the date you reach age 85. investing your way 13

16 variable annuity investing for my future section 2 Retirement Cornerstone variable annuity investment account

17 Table of Contents Section 1 Today s Retirement Challenges 2 The Inflation Challenge 4 Guaranteed Income in All Markets 7 Protected Benefit Account Facts 8 Protection for Your Beneficiaries 11 Investing Your Way 12 Section 2 Growth Potential 1 Investment Flexibility 2 Your Investment Choices 3 Putting It All Together 4 Before continuing on to Section 2, please be sure you ve carefully read Section 1, which describes the Protected Benefit Account, one of the two distinct accounts within Retirement Cornerstone s tax-deferred product. Section 2 provides information on the Investment Account.

18 growth potential with Retirement Cornerstone s Investment Account So far, we ve learned how Retirement Cornerstone s Protected Benefit Account can provide income for life and protect your retirement assets. But what if you have other retirement goals as well? You may want more time to maximize your accumulation potential on a tax-deferred basis. Retirement Cornerstone s Investment Account offers access to a comprehensive array of investment options managed by worldclass money managers. The fund choices span the full risk-tolerance spectrum from aggressive to moderate to conservative providing you with the ability to diversify your assets, and the flexibility to alter your investment mix with tax-free transfers among any of the investment choices available. Tax Deferral Can Mean Greater Growth Taxes on investment earnings can erode returns on investments that are taxed annually. With Retirement Cornerstone, you pay no taxes on your investment earnings until you withdraw them. This keeps more of your money working for you. The Advantages of Tax-Deferred Compounding $100,000 initial investment, 6% rate of return per year over 30 years, 28% federal income tax rate 1,200,000 1,000,000 Taxed Annually Taxed-Deferred, After Taxes Taxed-Deferred, Before Taxes 800, , , , Years 20 Years 30 Years This hypothetical chart does not represent actual performance of any specific product or investment. Withdrawals of tax-deferred earnings are subject to ordinary income tax. A 10% federal tax may also apply if you take the withdrawal before you reach age 59½. Dividends and sales profits on annually taxed investments are generally taxed at capital gains tax rates, which can be lower than ordinary federal income tax rates. Using capital gains tax rates with the taxed-annually investment would reduce the difference between the taxed-annually and taxdeferred accounts shown above. Please note that this chart excludes expenses associated with Retirement Cornerstone, including the administration, distribution and operations fee (1.30%) for series B and the portfolio expense charge (0.62% EQ/Equity 500 Index) as of May If expenses had been reflected, the taxed-deferred amounts would be lower. Consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision. These factors, as well as changes in tax rates and the treatment of investment earnings, may further affect the results of this comparison. growth potential 1

19 investment flexibility More Than 100 Investment Options10 GAMCO ASSET MANAGEMENT INC. BOSTON ADVISORS SM This may not be a complete list of all managers available in the Investment Account. You Have Access To: Investment choices managed by some of America s world-class investment managers. Many and Morningstar ranked portfolios.11 The ability to make tax-free transfers among investment options. A variety of relatively low-cost options to choose from. A platform not subject to current taxation. Taxes are entirely deferred until withdrawals begin. 10 You cannot exceed 90 investment options on one contract. Investment options are subject to market risk, including loss of principal. 11 The Morningstar Rating brings performance (returns) and risk together into one evaluation. To determine a portfolio s star rating for a given time period (three, five, or ten years), the portfolio s risk-adjusted return is plotted on a bell curve. If the portfolio scores in the top 10% of its category, it receives 5 stars (highest); if it falls in the next 22.5%, it receives 4 stars (above average); a place in the middle 35% earns 3 stars (average); those in the next 22.5% receive 2 stars (below average); and the bottom 10% get only 1 star (lowest). 2 investment flexibility

20 your investment choices Please note, the investment options available in the Protected Benefit Account (described in Section 1) are also available in the Investment Account. However, when you choose to invest in the Protected Benefit Account you must choose among seven asset allocation portfolios. Actively Managed Portfolios The goal of these portfolios is to maximize their performance compared to their benchmarks and to comparable portfolios. Alternative Portfolios The Investment Account offers specialty portfolios for the opportunistic investor seeking exposure to specific market sectors or alternative investments. Alternative portfolios are favored mainly because their returns have a low correlation to standard asset classes. You can work with your advisor to choose from these three strategies to further diversify your portfolio: Sector-specific portfolios, such as technology, healthcare, and biotechnology. Hard assets, such as real estate, natural resources, and commodities. Alternatives, such as mergers and acquisitions. Passive Portfolios The passive portfolios are designed to mirror the performance of a particular equity or fixed-income index. The portfolios are periodically rebalanced to reflect changes in the index, but are not actively managed. Asset Allocation Portfolios Asset allocation portfolios provide a way for you to systematically diversify your assets based on your risk tolerance or other investment preferences. your investment choices 3

21 Retirement Cornerstone Putting It All Together Transfers between Accounts You can enjoy the flexibility to transfer money from the Investment Account into the Protected Benefit Account up to a maximum age, depending on the benefits elected. Transfers from the Protected Benefit Account to the Investment Account, however, are not allowed. AXA Equitable may discontinue contributions and transfers among investment options. Solution Flexibility This product provides the opportunity to not only accumulate, but also protect your retirement assets. It is designed with two separate accounts with distinct features that help you achieve different goals. One account enables you to maximize your accumulation potential on a taxdeferred basis, offering access to a comprehensive array of over 100 investment options managed by world-class money managers. When the time is right to protect these retirement assets, you can utilize the other account, which guarantees you income for life regardless of market performance. The Guaranteed Minimum Income Benefit (GMIB) offers annual benefit base growth as high as 8%, but never lower than 3% or 4%, depending on the GMIB option you select. The annual rate is tied to the 10-Year Treasury rates, which have historically tracked above inflation, thus giving you the opportunity to preserve your retirement nest egg. 4 putting it all together

22 With GMIBs, it is important to be aware that annual dollar-for-dollar withdrawals made before the rider is exercised can potentially be greater than the guaranteed annual income stream that is ultimately realized under the rider. In particular, if you take withdrawals on a dollar-for-dollar basis and the Protected Benefit Account Value goes to zero while the No-Lapse Guarantee is still in effect, or you annuitize under the GMIB, the guaranteed lifetime income amount could go down depending on your current age. You can take annual dollar-for-dollar withdrawals from the Protected Benefit Account cash value for income and still maintain a GMIB Benefit Base at least equal to the amounts contributed or transferred into the Protected Benefit Account. However, a guaranteed lifetime income amount is not established under a GMIB until you exercise the rider through annuitization and begin receiving the supplementary annuity payments. That guaranteed lifetime income amount is calculated by applying the GMIB rider annuity payout rates to the benefit base, and it depends on your age and the size of the benefit base. The annual guaranteed lifetime income from the GMIB rider may be higher or lower than the annual dollar-for-dollar withdrawal amounts previously received. The GMIB rider fee may be raised or lowered at any time within the minimum/maximum, after the first two contract years, at the company s discretion. Certain features available with the Retirement Cornerstone version 15.0 variable annuity, including the Guaranteed Minimum Income Benefit, are optional and entail an additional cost; you do not have to elect these optional features in order to purchase a Retirement Cornerstone contract. Also, the IRS requires the owner of an IRA or Qualified Plan annuity contract to include the actuarial present value of certain optional benefits (which may include some of these Retirement Cornerstone optional features) in the calculation of lifetime Required Minimum Distribution payments. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional federal tax if withdrawn before age 59½. Withdrawals may also be subject to withdrawal charges. Withdrawals will reduce the death benefit (other than RMD withdrawals under the RMD Wealth Guard GMDB), living benefits and cash surrender value. For tax purposes, withdrawals will come from any gain in the contract first. The contingent withdrawal charge declines from 7% over a seven-year period for the Series B product. Please see the prospectus for the withdrawal charge scale for other annuities in the Retirement Cornerstone Series. This brochure is not a complete description of all material provisions of the variable annuity contract. This brochure must be preceded or accompanied by a current Retirement Cornerstone Series prospectus and any applicable supplements. The prospectus contains more complete information, including investment objectives, risks, charges, expenses, limitations and restrictions. Please read the prospectus and any applicable supplements, and consider this information carefully before purchasing a contract. There are certain contract limitations and restrictions associated with the Retirement Cornerstone contract, which include, but are not limited to, a contract fee and additional charges for optional benefits. In addition, the underlying investment portfolios charge management fees and have other expenses. For costs and complete details of coverage, speak to your financial professional/insurance-licensed registered representative. Certain types of contracts, features and benefits may not be available in all jurisdictions. AXA Equitable offers other variable annuity contracts with different fees, charges and features. Not every contract is available through the same selling broker/dealer. AXA Equitable may discontinue contributions and transfers among investment options or make other changes in contribution and transfer requirements and limitations. If we discontinue contributions and transfers into the Protected Benefit Account, you will no longer be able to fund your guaranteed benefits. You can contact AXA Equitable at (212) to find out the availability of other contracts. AXA Equitable is solely responsible for the asset allocation decisions made on behalf of each portfolio, and for the selection and allocation of assets to underlying funds. This brochure was prepared to support the promotion and marketing of AXA Equitable variable annuities. AXA Equitable, its distributors and their respective representatives do not provide tax, accounting or legal 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. Please consult your own independent advisors as to any tax, accounting or legal statements made herein. Call your financial professional or visit Guarantees described herein are subject to the claims-paying ability of AXA Equitable Life Insurance Company. The guarantees do not apply to the investment portfolios. Retirement Cornerstone is a registered service mark AXA Equitable Life Insurance Company, New York, NY Retirement Cornerstone variable annuities are issued by AXA Equitable Life Insurance Company, New York, NY All contract and rider guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, are backed by the claimspaying ability of AXA Equitable Life Insurance Company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of AXA Equitable Life Insurance Company.. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC, New York, NY (members FINRA, SIPC). Contract form #s: ICC12BASE4 and ICC12BASE3 and any state variations AXA is the brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life Insurance Company (NY, NY), AXA Advisors, LLC, and AXA Distributors, LLC. AXA S.A. is a French holding company for a group of international insurance and financial services companies, including AXA Equitable Financial Services, LLC. The obligations of AXA Equitable Life Insurance Company are backed solely by their claims-paying ability AXA Equitable Life Insurance Company. All rights reserved Avenue of the Americas, New York, NY 10104, (212) GE (2/15) (Exp. 2/17) ML (Exp. 5/15) G34308 Retirement Cornerstone 15 Cat. # (2/15)