Retirement Cornerstone variable annuity with guaranteed benefit riders

Transcription

1 Retirement Cornerstone variable annuity with guaranteed benefit riders Helping to Protect your Income in Unpredictable Markets Variable Products: Are Not a Deposit of Any Bank Are Not FDIC 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) GE GE /12) (exp (6/12) 4/14)

2 What is a Variable Annuity? A variable deferred annuity is a long-term financial product designed for retirement purposes. In essence, an annuity is a contractual agreement in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. Typically, variable annuities have mortality and expense risk charges, account fees, investment management fees, administrative fees, and charges for special contract features. Retirement Cornerstone is subject to these fees and charges. In addition, annuity contracts have restrictions and limitations. For costs and complete details, please contact a financial professional. Withdrawals may be subject to contractual withdrawal charges and, if taken prior to age 59½, an additional 10% federal tax may apply in addition to any ordinary income tax. Variable annuities are subject to investment risks, including the possible loss of principal invested. Guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company. This presentation must be preceded or accompanied by a current Retirement Cornerstone prospectus. The prospectus contains more complete information, including investment objectives, risks, charges, expenses, limitations and restrictions. Please read the prospectus and consider this information carefully before purchasing a Retirement Cornerstone annuity contract. Guarantees based on the claims-paying ability of AXA Equitable Life Insurance Company. 2 AXA Equitable Life Insurance Company (NY,NY) GE GE (11/11) (6/12)

3 Retirement Considerations L Longevity I Inflation V Volatility I Interest Rates T Taxes Retirement Challenges 3 AXA Equitable Life Insurance Company (NY,NY) GE GE (11/11) (6/12) AXA Equitable Life Insurance Company (NY,NY)

4 Interest Rates & Inflation Annual 10-Year Treasury Yields in more details 6 times % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % <2% 2-4% 4-6% 6-8% 8-10% >10% 10.62% 12.46% 11.10% 13.01% 13.92% 11.43% Source: 50 years 4 AXA Equitable Life Life Insurance Company (NY,NY) GE GE (11/11) (6/12)

5 AXA Equitable s Retirement Cornerstone Investment Account Wide-range of asset classes & full spectrum of portfolio management styles Well-known money managers and flexibility to access and transfer among Investment Options Protected Benefit Account Guaranteed Income for Life and Beneficiary Protection 1 Guaranteed Minimum Income and Death Benefits are optional riders, each available for an additional fee 1 If the value of your Protected Benefit Account were to fall to zero, you would still continue to receive guaranteed annual payments for the rest of your life (assuming that it was not an excess withdrawal that caused your account value to go to zero and the No Lapse Guarantee is still in effect). AXA AXA Equitable Equitable Life Insurance Life Insurance Company Company (NY,NY) GE GE (11/11) (6/12)

6 A Guarantee that May Be Able to Protect You Today and Tomorrow! Compound Growth (%) 2 year rate lock Variable 8% 4% Roll-up Rate Time Benefit Base The starting value equals your initial investment or transfer to the Protected Benefit Account. It is guaranteed to compound by the annual roll-up rate each year. Roll-Up Rate The deferral bonus roll-up and annual roll-up rates both compound annually and locked for the first two contract years, regardless of treasury rates. After two contract years, the deferral bonus roll-up rate will vary, is recalculated each contract year and is equal to the recent average 10-year treasury rates plus 2.00%. Once you begin taking income, the deferral bonus rill-up rate no longer applies and AXA Equitable will credit your clients benefit base by an annual roll-up that is equal to recent average 10-year treasury rates plus 1.00%. Both the deferral bonus and annual roll-up rates can be as high as 8% and will never be less than 4%. 6 AXA Equitable AXA Equitable Life Insurance Life Insurance Company Company (NY,NY) (NY,NY) GE GE (11/11) (6/12)

7 Annual Reset $ Annual Roll-Up Benefit Base Reset Reset Benefit Base Range % Compounded Growth % Compounded Growth Protected Benefit Account 0 Contract Anniversaries 7 AXA Equitable AXA Equitable Life Insurance Life Insurance Company Company (NY,NY) (NY,NY) GE GE (11/11) (6/12)

8 Receiving Income 10 year US Treasury Rate +1% Benefit Base Withdraw Amount Allowed Taking a withdrawal that is greater than the Annual Withdrawal Amount (an excess withdrawal ) in any given year may have an adverse effect on income guarantees, reducing the Benefit Bases pro rata. 8 AXA Equitable AXA Equitable Life Insurance Life Insurance Company Company (NY,NY) (NY,NY) GE GE (11/11) (6/12)

9 Benefit Base and Deferral Bonus Rate Benefit Base -Starting value equals your initial investment in the Protected Benefit Account- guaranteed to compound by the annual Roll-Up Rate each year. Deferral Bonus Rate - Rate that AXA Equitable will compound your Benefit Base by each year. - A flexible rate that is recalculated each contract year and is equal to the recent average 10-Year Treasury rates plus 2.00%. - Once you begin taking income the Deferral Bonus Roll-Up Rate no longer applies - AXA Equitable will credit the Benefit Base by an Annual Roll-Up that is equal to recent average 10-Year Treasury rates plus 1.00%, less withdrawals. - Both the Deferral Bonus and Annual Roll-Up rates can be as high as 8% and will not be less than 4%. 9 AXA AXA Equitable Equitable Life Life Insurance Insurance Company Company (NY,NY) (NY,NY) GE GE (11/11) (6/12)

10 Investment Account Not all money managers may be listed AXA Equitable Life Insurance Company (NY,NY) GE GE (11/11) (6/12)

11 Retirement Cornerstone AXA Equitable Life Insurance Company (NY,NY) GE GE (11/11)(6/12)

12 Important Information Retirement Cornerstone is a registered service mark of AXA Equitable Life Insurance Company, New York, NY The Retirement Cornerstone version 12.0 variable annuity is issued by AXA Equitable Life Insurance Company, New York, NY and is co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC. AXA Equitable, AXA Advisors and AXA Distributors are affiliated companies and do not provide tax or legal advice. This presentation 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. 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 Protection with Investment Performance Account, you will no longer be able to fund your guaranteed benefits. Please consult your own independent advisor as to any tax, accounting or legal statements made herein. The information presented herein is not a full and complete description of the products discussed. Certain types of contracts, features, and benefits may not be available in all jurisdictions. For costs and complete details of coverage, speak to your financial professional/insurance licensed registered representative AXA Equitable Life Insurance Company. All rights reserved. This presentation must be preceded or accompanied by a current Retirement Cornerstone prospectus. The prospectus contains more complete information, including investment objectives, risks, charges, expenses, limitations and restrictions. Please read the prospectus and consider this information carefully before purchasing an Retirement Cornerstone annuity contract. The contractual withdrawal charge declines from 7% over a seven-year period for the Series B product. Contract form #s: ICC12BASE4 and ICC12BASE3 and any state variations Variable Products: Are Not a Deposit of Any Bank Are Not FDIC Insured by Any Federal Government Agency Are Not Guaranteed by Any Bank or Savings Association May Go Down in Value Cat # (5/12) 12 AXA Equitable Life Insurance Company (NY,NY) GE (11/11) AXA Equitable Life Insurance Company (NY,NY) GE (6/12)