May 26, 2015 AD15-0526 For Financial Professional Use Only Audience: Life Producers Re: Introducing BrightLife Protect Survivorship, Series 156 Available in approved jurisdictions June 22 From: Product Development Group What s New: A newly designed BrightLife joint survivorship universal life product, BrightLife Protect Survivorship, Series 156, will be available for sale in all jurisdictions starting Monday, June 22, 2015. BrightLife Protect Survivorship, Series 156, is a flexible premium survivorship universal life insurance product that focuses on legacy planning and wealth transfer. Like BrightLife Protect single-life, it offers a traditional Fixed Account and an index-linked option called the Select Account. Building on the success of BrightLife Protect single life, BrightLife Protect Survivorship offers: A low-cost charge structure comparable to death benefit survivorship universal life (SUL) products. BrightLife Protect Survivorship is a competitive alternative to current assumption SUL products and guaranteed SUL products. The Select Account clients preferring a little more upside potential can allocate all or a portion of their premium to the select account, which earns interest based on one-year, point-to-point performance of the S&P 500 Price Return Index. The amount credited to the policy is subject to a cap and a 0% floor, which means clients can participate 100% in any positive returns of the S&P 500 Price Return Index up to the cap. A unique premium allocation structure new to survivorship that gives policyholders the flexibility to allocate their premiums in any amount to the Fixed Account, the Select Account or both. This allows policyholders the ability to adjust their allocations based on changing market conditions or their personal situations. The product offers a rolling target compensation structure (in all states except New York and Puerto Rico). The product will be issued by MONY Life Insurance Company of America (MLOA) in all jurisdictions, except New York and Puerto Rico where the product will be issued by AXA Equitable. In all jurisdictions, except New York and Puerto Rico, checks must be made payable to MONY Life Insurance Company of America. In New York and Puerto Rico, checks must be made payable to AXA Equitable Life Insurance Company. Paper applications can be submitted beginning June 22. Availability of eapp through ipipeline is expected in the fourth quarter 2015. Applications for Athena SUL IV, Series 154, will continue to be accepted until further notice.
When: Applications can be submitted beginning Monday, June 22, 2015. Applications must be signed June 22, 2015 or later. Illustrations are available beginning May 26, 2015 via AEGIS Web and Winflex Web. AEGIS Desktop will be delivered during the week of May 26. For More Info: See the following pages for details. If you have questions, contact the Life Sales Desk at (800) 924-6669, option 2.
BrightLife SM Protect Survivorship-Series 156 TABLE OF CONTENTS Introduction to BrightLife SM Protect Survivorship-Series 156 Section 1 Highlights and Product Features Section 2 State Availability and Transition Rules Section 3 Underwriting Section 4 Administration Section 5 Sales Illustrations Section 6 Licensing and Appointment Requirements Section 7 Marketing Materials Section 8 I. Introduction to BrightLife Protect Survivorship, Series 156 BrightLife Protect Survivorship, Series 156 offers the flexibility of both a Fixed Account and a Select Account. Clients can choose to allocate their premium to either or both of these accounts. Fixed Account The Fixed Account has a current declared rate and a guarantee that policyholders will never earn less than 2.0%. The current declared rate may fluctuate, depending on how interest rates move. Select Account Clients preferring a little more upside potential can allocate all or a portion of their premium to the Select Account, which earns interest based on one year point-to-point performance of the S&P 500 Index (excluding dividends). The amount credited to the policy value is subject to a cap, which means clients can participate 100% in any positive returns of the S&P 500 up to the cap. The Select Account has a 0% floor, which means clients will never earn less than 0% on performance. II. Highlights and Product Features BrightLife Protect Survivorship, Series 156, has many of the familiar features of BrightLife Protect, Series 155: Select Account Option: An additional crediting rate option that is linked to the S&P 500 Price Return Index with a one-year segment term. Clients will have the ability to allocate premiums between either or both the traditional Fixed and Select Accounts. Premium allocations can be changed during the life of the policy to adjust to market conditions. Compensation Structure: BrightLife Protect 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 but New York and Puerto Rico in order to allow for rolling targets. In New York and Puerto Rico, the product will be issued by AXA Equitable. Face Amount Bands and Minimums: The base policy Face Amounts are banded at $100,000 and $500,000. Commissionable target premium, current COI charges, and per $1,000 charges are banded. The minimum face amount at issue is $100,00 and for policies with CVPlus is $250,000. New Definition of insurance options: In addition to offering the Cash Value Accumulation Test (CVAT) the product will now also offer the Guideline Premium Test (GPT) option. Optional Dollar-cost Averaging: Dollar-cost averaging (DCA) allows the policy owner to specify a level dollar amount to be transferred to the select account on a monthly basis. Premiums are
allocated first to the fixed account designated for the DCA Service. A minimum balance of $5,000 is needed in the fixed account and a minimum of $50 for each transfer is required. DCA can be elected at issue or initiated after issue. New BrightLife Protect Supplement: The BrightLife Protect Questionnaire, Forms ICC15-MLOA- PSIUL and ICC15-AXA-PSIUL for interstate compact jurisdictions, and MLOA-PSIUL-2015 and AXA- PSIUL-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-PI2-2015 (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 (rev. 11/11) and AXA-Life-2011 (rev. 11/11) (or state variation). Surrender Charge Period: Similar to BrightLife Protect, Series 155, the surrender charge period for BrightLife Protect Survivorship is 15 years. Additionally, no pro-rata surrender charge will be assessed for face amount decreases. Interest Rate Bonus: In policy year 16 and later, a 25 basis points (bps) bonus on the unloaned Fixed Account and holding account provided the credited rate before the bonus is above the guaranteed minimum crediting rate for the Fixed Account and holding account. This bonus is not guaranteed (bonus will be conditionally guaranteed for policies delivered in New York). No-lapse Guarantee Period: The policy no-lapse guarantee period is the lesser of 15 years or the number of years from policy issue until attainment of age 90 of the younger insured (5 years if the Return of Premium Death Benefit Rider (ROPR) is elected) The rider is automatically included at no additional charge. Revised Premium Charge: On a current (non-guaranteed) and on a guaranteed basis, this charge is 10% of all gross premiums for all years. Death Benefit Option Changes: Any time after the second policy year and before the policy anniversary nearest the younger insured s age121, while the policy is inforce, the Death Benefit option may be changed. There is no transaction charge for an option change. NLG premium will change with an option change. Return of Premium Death Benefit Rider (ROPR): Maximum is one times the initial base policy face amount. Reinsurance Reinsurance is available on BrightLife Protect Survivorship. This is a change from Athena SUL where face amount maximums are limited to AXA s retention limits. Riders and Endorsements: BrightLife Protect Survivorship offers a robust array of additional benefit riders and endorsements. o No Lapse Guarantee Rider (NLG) o Cash Value Plus Rider (CVPlus) o Estate Protector Rider (EPR) o Return of Premium Death Benefit Rider (ROPR) o Option to Split Upon Federal Tax Law Change Rider o Option to Split Upon Divorce (OSD) o Living Benefits Rider (LBR) (terminal illness) o 2% Interest Guarantee Endorsement o Loan Extension Endorsement (LEE) (GPT policies only) The No Lapse Guarantee Rider, the Option to Split Upon Federal Tax Law Change Rider, the Option to Split Upon Divorce Rider, the Living Benefits Rider, the 2% Guarantee Endorsement, and the Loan Extension Endorsement are automatically included in the policy subject to any applicable limits as to issue ages and underwriting classes. Additional information on product features is available in the Product Guide at www.us.axa.com: Products > BrightLife Protect Survivorship.
III. State Availability and Transition Rules A. State Availability Effective June 22, BrightLife Protect Survivorship, Series 156 will be available for sale in all jurisdictions. The majority of states use policy form number ICC15-300. The remaining states use policy form 15-300 or state variation. The state availability chart for BrightLife Protect Survivorship, Series 156, is available at www.us.axa.com: Products > BrightLife Protect Survivorship. B. Transition Rules BrightLife Protect Survivorship, Series 156 will be available for sale on June 22, 2015. Applications for Athena SUL IV, Series 154, will continue to be accepted until further notice. Replacement of pending SUL IV policies with BrightLife Protect Survivorship will require submission of a new application, A.1, Sec B and a new conforming illustration.
IV. Underwriting Face Amount and Issue Age Limits The following underwriting classes, along with the available issue ages for younger and older insureds, for BrightLife Protect Survivorship, Series 156, are shown below. 1st Proposed Insured Risk Class Issue Ages Preferred NT 2nd Proposed Insured Maximum Acceptable Age for Different Classes Standard Plus or Preferred TU Standard B C D E/F/G X Preferred NT 20-70 70 80 90 85 85 85 85 85 Standard Plus 20-80 70 80 90 85 85 85 85 85 Preferred TU 20-80 70 80 90 85 85 85 85 85 20-80 70 80 90 85 85 85 85 85 Standard 81-85 70 80 90 75 75 65 N/A N/A 86-90 70 80 85 75 75 65 N/A N/A 20-75 70 80 90 85 85 85 85 85 B 76-80 70 80 80 80 80 65 N/A N/A 81-85 70 80 80 75 75 65 N/A N/A 20-75 70 80 90 85 85 85 85 85 C 76-80 70 80 80 80 80 65 N/A N/A 81-85 70 80 80 75 75 65 N/A N/A 20-65 70 80 90 85 85 85 85 85 D 66-75 70 80 80 75 75 75 75 N/A 76-85 70 80 80 75 75 65 N/A N/A E/F/G 20-75 70 80 80 75 75 75 N/A N/A 76-85 70 80 80 75 75 65 N/A N/A X 20-85 70 80 80 75 75 65 N/A N/A AXA Equitable s available retention may be used EXCEPT in the following scenarios: Both proposed insureds 75 or older and both substandard. One life age 74 rated G or X and the other life age 75 rated substandard. If available, full facultative reinsurance coverage may be used for all age/rating combinations V. Administration BrightLife Protect Survivorship, Series 156, is underwritten at the Life Operations Center in Charlotte, NC. All applications and requirements must be sent to Life Operations. For applications taken in New York and Puerto Rico, make checks payable to AXA Equitable Life Insurance Company. For applications taken in all other jurisdictions, make checks payable to MONY Life Insurance Company of America.
Applications for BrightLife Protect Survivorship, Series 156, may be submitted to Life Operations beginning June 22, 2015 to start the underwriting process. Applications must be signed June 22, 2015 or later. A. Applications The BrightLife Protect Survivorship Questionnaire, Forms ICC15-MLOA-PSIUL and ICC15-AXA-PSIUL for interstate compact jurisdictions, and MLOA-PSIUL-2015 and AXA-PSIUL-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. New for use with BrightLife Protect Survivorship is Section A.1, forms ICC15-MLOA-PI2 and ICC15- AXA-PI2 for interstate compact jurisdictions and MLOA-PI2-2015 (or state variation) for non-interstate compact jurisdictions These forms will be used for the proposed 2 nd insured Information. These forms are a supplement to the general life application ICC11-AXA-Life (rev. 11/11) and AXA-Life-2011 (rev. 11/11) (or state variation). These forms will be available June 22, 2015 at www.axa.com.
B. eapp Only paper apps for BrightLife Protect Survivorship will be available at launch. eapp availability is targeted for fourth quarter and will be announced separately. C. Free-look Period The policy contains a free-look provision, which provides for a refund of premium in all states. This period is at least 10 days measured from the date of policy delivery and a longer period may apply for a policy involving replacement of existing coverage. The period is subject to state variation. We will permit segments to start during the Free-Look period. The free-look provision will provide for a refund of premium paid less any loan and accrued loan interest in all states. No interest experience is allowed unless required by state regulations.
VI. Sales Illustrations A. Proposals As of May 26, 2015, sales illustrations will be available for all states via the AXA Equitable General Illustration System (AEGIS) through AEGIS Web. AEGIS Web version 9.7 may be accessed via www.axa.com and WinFlex Web. AEGIS Desktop Installation Instructions During the week of May 26, AEGIS 9.7 software will be delivered through Moka5 updates, or the AEGIS automatic update feature. When the AEGIS program is opened, you may see a prompt in your System Tray that an update is available. Click on the link to download and install the software. Upon completion of the install, AEGIS will prompt you for a restart of the program which will have been upgraded to 9.7. Note: The AEGIS desktop Software receives automatic updates for rate changes. When the AEGIS system is opened, there will be a prompt at the bottom right-hand corner if any updates are available. Click on the link to update the software. Note: The AEGIS desktop Software receives automatic updates for future state approvals and rate changes. When the AEGIS system is opened, there will be a prompt at the bottom right hand corner if any updates are available. Click on the link to update the software. B. Illustrated Rates BrightLife Protect Survivorship, Series 156 will offer the choice of a Select Account. Below is the current cap for the Select Account option and the corresponding default illustrated rate in AEGIS. Select Account Indexed Option Cap Default Illustrated Rate Select Account (S&P 500 1- Year Option) 8% 5.75% The current illustrated rate for the Fixed Account is 3.25% and the guaranteed minimum interest rate is 2%. The Select Account is the default option illustrated. C. Conforming illustrations If an illustration that conforms to the coverage applied for is provided to the applicant at the point of sale, a copy of the conforming illustration must be signed by both the FP and the prospective client and submitted with the application. The policy owner must receive an illustration which conforms to the policy that is issued no later than policy delivery. A conforming illustration must have the same initial premium allocation as the policy. A copy of the conforming illustration must be signed by the FP, the proposed insured and the policy owner, and returned to the service center with any other delivery requirements. Any commissions will not be released until the conforming illustration and all other delivery requirements have been received at the service center. D. Minimum Funding Rules The new business proposal system (AEGIS) will have minimum funding rules. The illustrated funding level must be sufficient to keep the policy inforce (under current assumptions) for 20 years for issue ages 0 70 of the younger insured and 10 years for issue ages 71 85 of the younger insured. The AEGIS software will not produce an illustration that does not meet these criteria, onscreen or otherwise
VII. Licensing and Appointment Requirements A Financial Professional must be appointed with MLOA (AXA Equitable in NY and PR) in the state where the sale is solicited, the applications for each insured are signed, the owner resides, and where the policy is delivered. It is not necessary to be equity qualified to sell this product. It is permissible for a Financial Professional to take a BrightLife Protect Survivorship application in a state only if: (a) the Financial Professional has the appropriate license for that state, (b) the state has approved BrightLife Protect Survivorship, and (c) there is a "reasonable nexus"(i.e., connection exists between the applicants and the state where the applications are taken). An example of "reasonable nexus" is when the applicants either reside or work in the state where the applications are taken. The underwriters will reject any case where a "reasonable nexus" does not exist. (d) If policyowner resides in the state of Maryland, an ICC application must be used. If Maryland will be the contract state then delivery of the policy must take place in Maryland. Reasonable nexus will not apply. (MD license is required). Iowa currently requires completion of indexed product training prior to making any sales presentation concerning an indexed product. See AD 10-022 for more details. FPs must be fully aware of the products mechanics, risks, terms and costs prior to solicitation. All client discussions must include a balanced review of the product's potential returns, level of protection, fund access, costs, AXA s credit-worthiness as a guarantor and other relevant factors. VIII. Marketing Materials To order printed marketing materials, log on to www.us.axa.com and go to Quick Links > Tools > Ordering & Purchasing > Marketing Materials. The following compliance-approved materials will be available beginning May 26, 2015. A. Printed Materials: BrightLife Protect Survivorship Client Kit (Cat. #154078K): Client brochure (Cat. 154078) includes a description of the product, as well as a visual depiction of how BrightLife Protect Survivorship works. The back pocket of the kit contains the following: Client Fact Card (Cat. #154079): Provides a high-level overview of the features of BrightLife Protect Survivorship. AXA Equitable and MLOA Strength and Stability (Cat. #149854): Presents the financial strength of AXA Equitable and its affiliates. To view and download marketing materials, such as sales ideas and producer s guides, log on to www.axa.us.com: Products > BrightLife Protect Survivorship. Review the BrightLife Protect Survivorship, Series 156, Product Guide and the policy form for information about the product and the account options. Both documents will be available on www.axa.us.com.
S&P, Standard & Poor s, S&P 500 and Standard & Poor s 500 TM are trademarks of Standard & Poor s and have been licensed for use by AXA Equitable. BrightLife Protect Survivorship, Series 156 is not sponsored, endorsed, sold or promoted by Standard & Poor s and Standard & Poor s does not make any representation regarding the advisability of investing in the product. All guarantees are based on the claims-paying ability of the issuing company, either AXA Equitable Life Insurance Company or MONY Life Insurance Company of America. BrightLife Protect, Series 156 is issued in New York and Puerto Rico by AXA Equitable Life Insurance Company (AXA Equitable), New York, NY 10104, and in all other jurisdictions by affiliate MONY Life Insurance Company of America (MONY America), an Arizona Stock Corporation, with main administrative office in Jersey City, NJ. It is co-distributed by affiliates AXA Network, LLC and AXA Equitable, MONY America, AXA Network, LLC and AXA Distributors, LLC do not provide tax or legal advice. Clients should rely on their own advisors on these matters. BrightLife Protect Survivorship, Series 156, is a registered service mark of AXA Equitable Life Insurance Company (AXA Equitable), New York, NY 10104. 2015 AXA Equitable Life Insurance Company. All rights reserved. 1290 Avenue of the Americas, New York, NY 10104, (212) 554-1234