ATHENA UNIVERSAL LIFE SM

Transcription

1 ATHENA UNIVERSAL LIFE SM SERIES 152 PRODUCT GUIDE IU ADL (4/11) Catalog #

2 ATHENA UNIVERSAL LIFE SM SERIES 152 PRODUCT GUIDE T A B L E O F C O N T E N T S ATHENA UNIVERSAL LIFE PRODUCT GUIDE...4 ATHENA UNIVERSAL LIFE... 4 WHAT S NEW FOR ATHENA UNIVERSAL LIFE, SERIES ABOUT AXA EQUITABLE...6 AXA FINANCIAL, INC... 6 AXA GROUP... 6 AXA EQUITABLE... 6 ATHENA UNIVERSAL LIFE PRODUCT AT-A-GLANCE...7 POLICY CHARGES...12 DEDUCTIONS FROM PREMIUM PAYMENTS DEDUCTIONS FROM THE POLICY ACCOUNT SURRENDER CHARGE RIDERS ) NO LAPSE GUARANTEE RIDER (NLG) ) CHARITABLE LEGACY RIDER (CLR) ) RETURN OF PREMIUM AT DEATH BENEFIT RIDER (ROPR) ) DISABILITY WAIVER OF MONTHLY DEDUCTIONS (DDW) ) CHILDREN S TERM INSURANCE RIDER (CTIR) ) LIVING BENEFITS (ACCELERATED BENEFITS) RIDER (LBR) ) CASH VALUE PLUS RIDER (CVPLUS) ) LOAN EXTENSION ENDORSEMENT (LEE) ) LONG-TERM CARE SERVICES (LTCS) RIDER ) OPTION TO PURCHASE ADDITIONAL INSURANCE (OPAI) LIFE INSURANCE QUALIFICATION TEST...34 PREMIUMS...37 MINIMUM INITIAL PREMIUM (MIP) PREMIUM MODES PLANNED PERIODIC PREMIUM (PPP) MAXIMUM PREMIUMS TAMRA 7-PAY PREMIUMS MODIFIED ENDOWMENT CONTRACT (MEC) TAXATION GUIDELINE PREMIUM LIMIT COMMISSIONABLE TARGET PREMIUM (CTP) SALES LOAD TARGET PREMIUM (SLTP) NO LAPSE GUARANTEE (NLG) PREMIUM POLICY ACCOUNT...43 POLICY ACCOUNT VALUE NET POLICY ACCOUNT VALUE CASH SURRENDER VALUE NET CASH SURRENDER VALUE DECLARED INTEREST RATE INTEREST RATE BONUS POLICY ACCOUNT ACTIVITY DEATH BENEFIT...45 IU ADL (4/11) ii Catalog #

3 FACE AMOUNT LIMITS ROPR FACE AMOUNT LIMITS DEATH BENEFIT OPTIONS CORRIDOR NO LAPSE GUARANTEE (NLG) RIDER COVERAGE AFTER AGE WITHDRAWALS AND POLICY LOANS...47 WITHDRAWALS OF THE NET CASH SURRENDER VALUE POLICY LOANS TAXATION OF WITHDRAWALS AND LOANS POLICY CHANGES...50 DEATH BENEFIT OPTION CHANGES FACE AMOUNT CHANGES TOBACCO USER STATUS CHANGE INCENTIVE TO STOP USING TOBACCO PRODUCTS RATING REDUCTION RIDER ADDITION: CHILDREN S TERM INSURANCE RIDER RIDER TERMINATIONS TAX CONSIDERATIONS TAX IMPLICATIONS OF POLICY CHANGES POLICY LAPSE...54 GRACE PERIOD POLICY RESTORATION UNDERWRITING...56 UNDERWRITING CLASSES UNDERWRITING REQUIREMENTS BACKDATING TO SAVE AGE UNISEX RATES CLASSIFIED INSURANCE CHANGE IN UNDERWRITING CLASSIFICATION TERM CONVERSIONS AXA EQUITABLE L.I.F.E. PROGRAM LIFE INSURANCE FOR EMPLOYEES COMPLIANCE...58 LICENSING ILLUSTRATION REQUIREMENTS COST DISCLOSURE NOTICE BUYER S GUIDE FREE LOOK PERIOD DELIVERY PERIOD DELIVERY RECEIPT COMPLETING THE APPLICATION...60 BUSINESS AND EMPLOYER OWNED POLICIES...62 REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS FOR EMPLOYER-OWNED LIFE INSURANCE 62 OTHER TAX DISCLOSURE...63 ADDITIONAL REFERENCES...63 IU ADL (4/11) iii Catalog #

4 ATHENA UNIVERSAL LIFE PRODUCT GUIDE ATHENA UNIVERSAL LIFE Athena Universal Life SM (Athena UL) is an innovative flexible premium universal life product with a focus on current assumption performance. Its primary goal is to provide affordable death benefit protection with strong cash value accumulation. The typical prospect is age 35 or older who desires more affordable premiums, more flexibility to address changing needs, and is attracted to the product s potential for efficient cash value accumulation. The product is particularly competitive for level minimum premium to endow scenarios. We expect to be strongest for issue ages 55 and above with a secondary target to be reasonably competitive for issue ages A current assumption product like Athena UL offers the benefits historically associated with 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 increase or decrease face amounts to meet changing circumstances. Athena UL also can build cash value, which can be accessed through policy loans and withdrawals. Another benefit that Athena UL offers is upside potential. Thus, if crediting rates on this product increase in the future, the policy s cash value and/or death benefit will be higher than initially illustrated or premiums may be able to be reduced in the future. Finally, Athena UL offers an innovative Charitable Legacy Rider on policies with face amounts of $1,000,000 or more. This rider provides a policy owner s qualified designated charity with a gift of 1% of the policy s stated death benefit amount, up to a maximum of an additional $100,000. The good news is that the rider provides this benefit without the policy owner being charged an additional premium, and without any reduction in the death benefit paid to his or her beneficiary. Athena UL also offers a No Lapse Guarantee Rider that offers the opportunity for considerable downside protection against potential drops in the crediting rate or an increase in some non-guaranteed policy charges. This rider guarantees the policy will remain in effect as long as its requirements are met even if there is no cash surrender value to pay monthly deductions during the NLG period. Unlike many current assumption products that have no NLG provision or one that lasts no more than 10 years, the NLG Rider on Athena UL provides a guarantee from years for ages 0-60 and to age 90 for those older than 60. In the product s sweet spot for ages 55 and up, the NLG is generally past life expectancy and thus offers valuable downside protection at no charge to the policy owner. The marketing applications for this product will primarily focus on providing a death benefit at an affordable premium level. Accordingly, Athena UL will often be used to meet a prospect s needs for survivor income, estate liquidity, key person insurance, and buy-sell funding. Because the product is very attractive for healthy males and females for ages 55 and above, it may often be used in conjunction with certain presentations in the AEGIS software that work well at these ages including: Life Insurance as an Asset, Municipal Bond Max, Annuity Max, Qualified Plan Max, Income Max, and Pension Max. Further, Athena UL can also be used in premium financing cases (often with the Return of Premium Death Benefit Rider and Cash Value Plus Rider) and in conjunction with a policy review. Athena UL can also be used to provide supplemental retirement income, especially if the policy is heavily funded, in addition to the death benefit. Of course, cash value accumulation scenarios are more likely to occur when the crediting rate on the policy is high. IU ADL (4/11) 4 Catalog #

5 WHAT S NEW FOR ATHENA UNIVERSAL LIFE, SERIES 152 Athena Universal Life, Series 152, has many of the familiar features of Athena UL, Series 150 as well as some revised features and unique new features as outlined below. No Lapse Guarantee Rider (NLG): Protects the Death Benefit regardless of the level of crediting rates or non-guaranteed policy charges during the first five to forty policy years, depending on issue age, if ROPR is elected or not, if certain premium requirements are met, and any loan and accrued loan interest does not exceed the Cash Surrender Value. This rider is automatically included and there is no charge for this guarantee. Note: with Athena UL, Series 152, the NLG period is restricted to 5 years if ROPR is elected, even if ROPR is terminated after issue. New Minimum Face Amounts for Policies with the CVPlus rider: $250,000/life for 1-2 lives and $100,000/life for 3 or more lives when CVPlus is elected. New Policy Lapse Processing: Rather than Policy Account Value, the Net Cash Surrender Value is used to determine whether the policy has sufficient funds to pay the monthly deduction for that month. If the funds are not sufficient, then policy lapse processing will begin. For more information on policy lapse processing, please see the Policy Lapse section on page 54. Revised - Interest Rate Bonus: For issue ages 0-50 = 0.25% (25 basis points) (annual rate) in policy years 21 through 35, 0.75% (75 basis points) (annual rate) in policy years 36 until attained age 120, 0 basis points at attained age 121 and beyond. For issue ages 51 and older = 0.25% (25 basis points) (effective annual rate) in policy years 16 through 30, 0.75% (75 basis points) (annual rate) in policy years 31 until attained age 120, 0 basis points at attained age 121 and beyond. This bonus in nonguaranteed. Revised - Premium Charge: The premium charge is based on the policy duration and applies to all layers of coverage as follows: Current, non-guaranteed: Determination of premium charge is based on premiums received each policy year and each year is treated independently: Policy Years 1-10: 6% up to 2 SLTP*s, 8% on excess Policy Year 11+: 3% on all premiums Guaranteed on all premiums in all policy years: 8% New Monthly Per $1000 of Face Amount Administrative Charge: There is also a monthly per $1,000 administrative charge that applies during the first 10 policy years or for 10 years following a face increase above the highest previous face amount on a current basis. The charge varies by the insured s issue age and attained age for the increase layer. On a guaranteed basis, the charge applies until attained age 121. Revised CVPlus Rider: The rider charge for CVPlus is $0.04/$1,000 of initial Face Amount deducted monthly from the policy account ($0.48/$1,000 annually) during the first 8 policy years. The CVPlus rider can also terminate upon policyowner request after the first policy year, and the CVPlus rider is now available with Guaranteed Issue. Revised Loan Interest Rate: Loan rate-interest charged: Current Basis = 3% in Policy Years 1-20 (or to attained age 121, if earlier), 2% thereafter Guaranteed loan rate 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, but not more than 15%. Interest credited on loaned amounts is 2% in all years. IU ADL (4/11) 5 Catalog #

6 ABOUT AXA EQUITABLE When it comes to meeting your clients financial needs, Financial Professionals know that a product is only as good as the company that stands behind it. Athena Universal Life SM provides your clients with a quality life insurance product backed by the strength and stability of AXA Equitable. AXA FINANCIAL, INC. AXA Financial, Inc. is one of the premier U.S. organizations in financial protection and wealth management through its strong brands: AXA Equitable Life Insurance Company, AXA Advisors, LLC, AXA Distributors, LLC, AllianceBernstein, LP, and MONY Life Insurance Company and MONY Life Insurance Company of America. AXA GROUP AXA Equitable s parent company, AXA Financial, Inc., is a member of the global AXA Group, a worldwide leader in financial protection and wealth management. AXA Group's operations are diverse geographically, with major operations in Western Europe, North America, and the Asia/Pacific region. The AXA ordinary share is listed on the Paris Stock Exchange and trades under the symbol AXA. The AXA American Depositary Share is also listed on the NYSE under the ticker symbol AXA. AXA EQUITABLE Athena Universal Life SM is issued by AXA Equitable Life Insurance Company ( AXA Equitable ), a leading provider of insurance and annuity products designed to meet client needs and changing life situations. For more than a century, high quality insurance and annuity products have been the hallmark of AXA Equitable. Innovative from the start, we have continued to meet the changing needs of the marketplace. In 1976, we pioneered individual variable life insurance. And today, we are a respected leader in the financial services industry. AXA Equitable is solely responsible for its obligations under Athena Universal Life SM policies. Any mention of AXA Financial, Inc. or AXA Group is for informational purposes only. It is not intended to imply that either company has any obligations under the Athena Universal Life SM policies. IU ADL (4/11) 6 Catalog #

7 ATHENA UNIVERSAL LIFE PRODUCT AT-A-GLANCE Feature Description Type of Policy Flexible Premium Universal Life Insurance. Policy Form Number ICC , or state variation. Application and Supplement Application AMIGV-2009 (07/10) or state variation.. Gender Optional Benefits Supplement) (2009) (05/11) or state variation, in states where the new application is approved. Long Term Care Services Rider Supplement LTC or state variation. Male, Female, and Unisex. Unisex is required in Montana and for cases subject to ERISA. Minimum Face Amounts $50,000 Maximum Face Amount Issue Ages and Underwriting Classes Death Benefit Options $250,000/life for 1-2 lives and $100,000/life for 3 or more lives when CVPlus is elected. $1,000,000 Policies with Charitable Legacy Rider Subject to availability of reinsurance. Preferred Elite: Non-Tobacco Only (18-75). Preferred: Non-Tobacco (18-80*), Tobacco (18-85*). Standard Plus: Non-Tobacco Only (0-85*). Standard: (18-85*). Substandard: B, C (18-85*). Substandard: D, E, F (18-79). Guaranteed Issue: (20-70) only available with prior approval from the Underwriting/Guaranteed Issue Unit at the NOC. All classes vary by Tobacco User and Non-Tobacco User except for the Preferred Elite and Standard Plus classes, which are Non- Tobacco User only classes. If any policy is rated with a flat extra the maximum issue age is 79. For policies issued on juveniles (ages 0-17): The only available class at issue is Standard Plus. There is no distinction for Tobacco User/Non-Tobacco User. Beginning at attained age 18, Standard Plus Non-Tobacco User rates will apply unless the insured qualifies for Preferred or Preferred Elite with underwriting. Option A: Level Death Benefit. Option B: Death Benefit equal to the Face Amount plus the Policy Account Value. Under either option, a higher (alternative) benefit may apply if the IU ADL (4/11) 7 Catalog #

8 Feature Description Policy Values reach certain levels relative to the Face Amount. The alternative Death Benefit is calculated by multiplying the Policy Account Value on the insured s date of death by a percentage factor specified in the policy for the insured person s attained age in the policy year of death. No Lapse Guarantee (NLG) Ensures that the policy will not terminate during the first 5 to 40 policy years, depending on issue age, regardless of policy performance. Coverage After Age 121 Premiums The NLG period is restricted to 5 years if ROPR is elected, even if ROPR is terminated after issue. A certain level of premiums must be maintained and any policy loan and accrued loan interest must not exceed the Cash Surrender Value. There is no charge for the NLG. There is no maturity provision. However, at the Insured s attained age 121, The monthly cost of insurance and monthly administrative charge will be set to zero on a guaranteed basis; Interest will continue to be credited to the policy account; The loan interest rate spread will be set to zero on a current basis (even if attained age 121 is prior to policy year 21); Premium payments, partial withdrawals, face amount decreases and death benefit options changes (B to A) will no longer be accepted. Premiums are flexible. However, in order for the No Lapse Guarantee rider to remain in effect, a certain level of premiums must be maintained. Premium Payment Modes Direct Billing annual, semi-annual, quarterly, and monthly. Policy Changes Systematic quarterly and monthly. Salary allotment annual, semi-annual, quarterly, and monthly. Military allotment monthly. The minimum premium is $50 for all modes. Face Amount Increases - permitted after the first policy year and through the maximum issue age for the Insured s rating class. Face Amount Decreases - permitted after the second policy year and before the Insured s attained age 121. Death Benefit Option Changes - available after the second policy year and through the maximum issue age for the Insured s rating class for a change from A to B, and before the Insured s attained age 121 for a change from B to A. Rider Additions - available for the Children s Term Insurance Rider (CTIR) and Living Benefits Rider (LBR) subject to IU ADL (4/11) 8 Catalog #

9 Feature Declared Interest Rate underwriting. Description Rider Terminations - may be requested at any time after issue, subject to the terms of each rider. ROPR Changes may be requested at any time after issue, subject to the terms of the rider. These include changes in the accumulation rate, and requests to cease face amount increases or to decrease the face amount. Interest is credited on unloaned amounts at a fixed rate, which we declare periodically. There is no guarantee period, we reserve the right to change rates at any time. The guaranteed minimum rate is 2% (effective annual rate). Partial Withdrawals Available after the first policy year Interest Rate Bonus $500 minimum. Non-Guaranteed bonus: Issue ages 0-50 = 25 basis points (effective annual rate) in policy years 21 through 35, 75 basis points (effective annual rate) in policy years 36 until attained age 120, 0 basis points at attained age 121 and beyond. Issue ages 51 and older = 25 basis points (effective annual rate) in policy years 16 through 30, 75 basis points (effective annual rate) in policy years 31 until attained age 120, 0 basis points at attained age 121 and beyond. Policy Loans Up to 100% of the Net Cash Surrender Value (NCSV) is available. $500 minimum for new loans Carryover Loans Allowed subject to certain conditions. The loan amount carried over cannot exceed 75% of the initial premium on the new policy and must be supportable by the cash value of the new policy. Interest Rate Charged On Loans Adjustable rate that is determined at the beginning of each policy year. Currently 3.0% for policy years 1 through 20 and 2.0% thereafter. Interest Rate Credited On Loans On a current (non-guaranteed) basis as well as guaranteed minimum basis, the rate credited on the policy loans is 2.0% (effective annual rate). Definition of Life Insurance Riders & Endorsements Current interest rate spread is 1% through policy 20 and 0% for policy years 21+. Guaranteed maximum loan spread is 2% in all years. Guideline Premium Test (GPT) or Cash Value Accumulation Test (CVAT). The following additional benefits are available with the policy, in approved jurisdictions. Refer to the Riders Section for terms and availability. IU ADL (4/11) 9 Catalog #

10 Feature Policy Charges Deducted from Premiums Description Charitable Legacy Rider (CLR) Return of Premium Death Benefit Rider (ROPR) Disability Waiver of Monthly Deductions Rider (DDW) Children s Term Insurance Rider (CTIR) Cash Value Plus Rider (CVPlus) Long-Term Care Services Rider (LTCS) (chronic illness) Option to Purchase Additional Insurance Rider (OPAI) The following benefits are automatically included with eligible policies, in approved jurisdictions, at no charge: No Lapse Guarantee Rider (NLG) Living Benefits Rider (LBR) (terminal illness) Loan Extension Endorsement (LEE) The premium charge is based on the policy duration and applies to all layers of coverage as follows: Current, non-guaranteed: Determination of premium charge is based on premiums received each policy year and each year is treated independently: Policy Years 1-10: 6% up to 2 SLTPs, 8% on excess Policy Year 11+: 3% on all premiums Guaranteed on all premiums in all policy years: 8% Policy Charges Deducted from the Policy Account The following charges are deducted each month from the Policy Account Value: Monthly Per Policy Administrative Charge: $10 per month in all policy years until attained age 121 on a current, non-guaranteed basis. On a guaranteed basis the monthly administrative charge applies until attained age 121, and is guaranteed not to exceed $15 per month. There is also a monthly per $1,000 administrative charge that applies during the first 10 policy years or for 10 years following a face increase above the highest previous face amount on a current basis. The charge varies by the insured s issue age and attained age for the increase layer. On a guaranteed basis, the charge applies until attained age 121. Cost of Insurance (COI) Charge: Current (non-guaranteed) COI rates vary by the Insured s issue age, gender, tobacco-user status, underwriting class, face amount size band ($50,000 - $499,999, $500,000 - $999,999 and $1,000,000+) and the policy duration. Guaranteed maximum COI rates are based on 2001 CSO Mortality Tables. On a current (non-guaranteed) basis, COIs for the base policy and any applicable ROPR are deducted until the insured s IU ADL (4/11) 10 Catalog #

11 Feature Description attained age 121. On a guaranteed basis, they are deducted until the insured s attained age 121. Flat Extra Charges (if applicable): Permanent flat extras - deducted until the later of the Insured s attained age 80 or 15 years from the register date. Temporary flat extras - deducted until their expiry date. Rider Charges: Charges for any optional riders elected by the policy owner. Surrender Charges Deducted from the Policy Account upon surrender or requested Face Amount decrease during the first 20 policy years or for 20 years after a requested Face Amount increase. Varies by gender, tobacco-user status and issue age. Grades down to zero by the end of policy year 20 or 20 years after a requested Face Amount increase. IU ADL (4/11) 11 Catalog #

12 POLICY CHARGES Charges associated with an Athena Universal Life policy are grouped into three categories in this guide: Deductions from Premium Payments; Deductions from the Policy Account; and Surrender Charges. DEDUCTIONS FROM PREMIUM PAYMENTS A Premium Charge is deducted from each premium payment. The Premium Charge is assessed on a policy year basis. During policy years 1-10, on a non-guaranteed basis, the charge is equal to 6% of premiums paid up to two times the Sales Load Target Premiums, with 8% assessed on any excess during policy years 11 and after, 3% is assessed on all premiums. On a guaranteed basis, 8% can be deducted from every gross premium. The Sales Load Target Premium is equal to the Commissionable Target Premium for the base coverage, excluding the CTP component for riders and flat extras. A similar charge also applies to premiums attributable to Face Amount increases. After a requested Face Amount increase above the highest historical Face Amount, premium payments will be allocated to each layer of Face Amount and the Premium Charge will be based on the policy year of the Face Amount increase on the same policy year schedule. DEDUCTIONS FROM THE POLICY ACCOUNT The following lists all charges that may be deducted from the Policy Account. The first two charges are charges common to all policies. The last four charges are deducted only as applicable. 1) Monthly Administrative Charge 2) Cost of Insurance Charge 3) Permanent or Temporary Flat Extra Charges 4) ROPR Cost of Insurance Charge 5) Rider Costs 6) Charges for Policy Changes 1) Monthly Administrative Charge There is a per policy Monthly Administrative Charge to cover some of the costs of issuing and maintaining the policy. This charge is $10 per month in all policy years until attained age 121 on a current, non-guaranteed basis. On a guaranteed basis the monthly administrative charge applies until attained age 121, and is guaranteed not to exceed $15 per month. There is also a monthly per $1,000 administrative charge that applies during the first 10 policy years or for 10 years following a face increase above the highest previous face amount on a current basis. The charge varies by the insured s issue age and attained age for the increase layer. On a guaranteed basis, the charge applies until attained age ) Cost Of Insurance (COI) Charge A cost of insurance charge is deducted monthly for coverage under the base policy. The monthly COI charge is calculated by multiplying the Net Amount at Risk at the beginning of each policy month by the monthly cost of insurance rate applicable to the Insured at that time. Since the Net Amount at Risk may change from month to month, the monthly cost of insurance may also change. The COI rates vary according to the Insured s issue age, gender, tobacco-user status and underwriting class, the policy duration and base policy Face Amount. The current, non-guaranteed IU ADL (4/11) 12 Catalog #

13 COI rate bands are at Face Amounts of $50,000, $500,000 and $1 million. Current COI charges are set to zero beginning at the Insured s attained age 121 on a non-guaranteed and guaranteed basis. There are non-guaranteed and guaranteed COI rates for male, female, unisex, tobacco-user and nontobacco User in each underwriting class except for the Preferred Elite and Standard Plus classes which are non-tobacco user classes. The guaranteed rates are based on the combined (uni-smoker) 2001 CSO Mortality Tables through attained age 17 and the 2001 CSO smoker/non-smoker Mortality Tables for attained ages 18 and above. There are special guaranteed maximum rates for substandard classes B, C, D, E, and F. The guaranteed maximum rates for Preferred Elite, Preferred, Standard Plus, Standard, and Guaranteed Issue are the same. 3) Permanent or Temporary Flat Extra Charges Flat-Extra charges (if applicable) are deducted monthly. Permanent Flat Extras are applicable until the later of: 1) the policy anniversary nearest the Insured s 80th birthday, or 2) 15 years from the Register Date. Temporary Flat Extra charges are deducted until their expiry date. The Preferred Elite, Preferred and Standard Plus underwriting classes may not be combined with any temporary flat extra charges; however, permanent flat extra charges for aviation, avocation or occupation are allowed with these classes but are limited to $3.50 per thousand with the exception that no flat extras may apply to juveniles (issue ages 0-17) 4) Rider Costs Charges for all applicable riders are deducted monthly. The Return of Premium Rider (ROPR) and the CVPlus Rider, if elected, use the same current and guaranteed maximum COI rates and Flat Extra charges as the base policy. The ROPR monthly COI charge is calculated by multiplying the ROPR Death Benefit times the current COI rate. 5) Charges for Policy Changes Face Amount Decreases -- If the policy is in a surrender charge period, a pro-rata surrender charge is deducted at the time of the decrease. SURRENDER CHARGE There is a Surrender Charge that applies for the first 20 policy years and for 20 years after a requested Face Amount increase above the highest previous Face Amount. A pro-rata surrender charge is imposed for requested Face Amount decreases that occur during a surrender charge period. The surrender charge varies by Face Amount and duration. The surrender charge at issue is equal to a rate based on the insured s issue age, gender, and tobacco-user status multiplied by the policy s Face Amount. The surrender charge grades down to zero on a monthly basis at the end of policy year 20 (or at the end of the 20 th year after a Face Amount increase). Surrender Charge on a Face Amount Increase -- A new tier of surrender charges is imposed if there is a requested Face Amount increase above the highest previous Face Amount. This new tier applies for 20 years after the effective date of the Face Amount increase that exceeds the highest previous Face Amount. Surrender Charge on a Face Amount Decrease -- A requested Face Amount decrease during a surrender charge period triggers a deduction of a pro-rata portion of the surrender charge from the Policy Account. For multiple layers of surrender charges, reductions are applied on a LIFO (Last-In-First-Out) basis, with the first application being against the most recent Face Amount increase. Pro-rata surrender charges are not deducted for Face Amount decreases resulting from changes in the Death Benefit Option, from a partial withdrawal, or for a requested decrease in the ROPR Face amount. IU ADL (4/11) 13 Catalog #

14 RIDERS The riders listed below are available with Athena Universal Life SM. Please see the following pages for complete rider descriptions. 1) No Lapse Guarantee Rider (NLG) 2) Charitable Legacy Rider (CLR) 3) Return of Premium at Death Benefit Rider (ROPR) 4) Disability Waiver of Monthly Deductions Rider (DDW) 5) Children s Term Insurance Rider (CTIR) 6) Living Benefits Rider (LBR) (terminal illness) 7) Cash Value Plus Rider (CVPlus) 8) Loan Extension Endorsement (LEE) 9) Long-Term Care Services Rider (LTCS) (chronic illness) 10) Option to Purchase Additional Insurance Rider (OPAI) IU ADL (4/11) 14 Catalog #

15 RIDERS* AT-A-GLANCE Rider Issue Ages Coverage Period Minimum Maximum NLG All 5 40 years, depending on issue age and whether or not ROPR is elected, or until the policy terminates or goes on Loan Extension. CLR All Until the policy terminates or goes on Loan Extension. ROPR All Lifetime, but ROPR increases cease at Insured s attained age 100 DDW 5-59 Insured s 5 th birthday to the policy anniversary nearest the 65 th birthday N/A $1 million base policy face amount Minimum benefit is $10,000 N/A Base policy face amount N/A N/A Maximum benefit is $100,000 4x initial base policy face amount, or less according to underwriting $3,000,000 For All AXA Equitable (and/or any affiliated company) policies, including any term riders CTIR Insured: Children: days old to the earlier of the child s 25 th birthday or the day before the policy anniversary nearest the base Insured s 65 th birthday 5 units ($5,000) 25 units (50 in NY), but not more than 1 unit per $5,000 of base policy face amount LBR All Until the policy terminates, goes on Loan Extension or when the amount of the lien equals the total death benefit. $5,000 75% of the policy s death benefit, or $500,000 if less CVPlus Issue limits vary by tobacco use and underwriting class First 8 policy years $250,000/life at issue for 1-2 lives and $100,000/life at issue for 3 or more lives. N/A IU ADL (4/11) 15 Catalog #

16 RIDERS* AT-A-GLANCE Rider Issue Ages Coverage Period Minimum Maximum LEE (GPT only) All Lifetime. Loan Extension may be triggered on or after the policy anniversary nearest the Insured s attained age 75, but not earlier than the 20 th policy anniversary. N/A N/A LTCS Until the policy terminates, goes on Loan Extension or when the Specified Amount is paid out. Specified Amount: Face amount of base policy Monthly Benefit Payment: $500 Long Term Care Benefit Amount: Issue Ages = 1% or 2% Issue Ages = 3% Specified Amount: Amount that would result in $50,000 of Monthly Benefit for all Long Term Care Coverage issued by AXA EQ and affiliates. Monthly Benefit Payment: 200% of the applicable daily HIPAA limit times 30 OPAI 0-37 Option dates are policy anniversaries nearest Insured s attained ages 22, 25, 28, 31, 34, 37, & 40. $25,000 $100,000 * Rider availability varies by jurisdiction and state variations apply. IU ADL (4/11) 16 Catalog #

17 RIDER DESCRIPTIONS 1) No Lapse Guarantee Rider (NLG) The No Lapse Guarantee (NLG) rider guarantees the policy will not terminate during the NLG period as long as the premium requirement for the NLG is met and any policy loan and accrued loan interest does not exceed the Cash Surrender Value (if the Loan Extension provision is not in effect). Availability This rider is automatically included at issue with all policies. This rider cannot be added after issue. The rider is available with either Death Benefit Option A or B. The NLG premiums will be the same for both Death Benefit Options. The NLG period is restricted to 5 years if ROPR is elected, even if ROPR is terminated after issue. If ROPR is not elected, the NLG has a period ranging from 5 years to 40 years, depending on the issue age of the insured, as follows: Issue ages 0 35: 40 years, Issue ages 36 45: the number of years to the insured s attained age 75, Issue ages 46 60: 30 years, and Issue ages 61 85: the number of years to the insured s attained age 90. If ROPR is not elected, the NLG expires at attained age 40 to 90, depending on the issue age of the insured. Refer to the tables below: Issue Age Automatic NLG Period Issue Age Automatic NLG Period Issue Age Attained Age When NLG Expires 35 and younger 40 years years years years years years years years years years years years years years years years years years years years years years years years years years years 81 9 years years 82 8 years years 83 7 years years 84 6 years 60 and above 90 IU ADL (4/11) 17 Catalog #

18 67 23 years 85 5 years Features While the NLG is in effect, any portion of the monthly deduction that cannot be taken will be waived, provided that the NLG Premium Fund Test (PFT) is passed and any loan and accrued loan interest does not exceed the Cash Surrender Value. The PFT assumes a 3.5% interest rate. The NLG premiums are modalized. Therefore, paying NLG premiums on a mode other than annual will require higher total annualized NLG premiums. The NLG PFT is passed in one of two ways: 1) If the sum of actual premiums paid accumulated at 3.5% per annum, less any partial withdrawals accumulated at 3.5% per annum (called the actual premium fund ), is at least equal to the sum of all monthly NLG premiums due to that time accumulated at 3.5% per annum (called the NLG premium fund ). Actual premiums are assumed effective at the beginning of the policy month for this test, or 2) For policies that are GPT, if the policy is funded at the guideline limit, then we deem the test to be passed. If the NLG Premium Fund Test fails, a 61-day Grace Period begins. Cost There is no charge for this rider. Termination This rider will terminate at the earliest of the following dates: The end of the NLG period; If the policy is placed on Loan Extension; Upon written request by the policy owner. If the policy lapses and is subsequently restored, the NLG rider cannot be reinstated. Compensation There is no commissionable target premium component for this rider. 2) Charitable Legacy Rider (CLR) The rider provides an additional death benefit of up to 1% of the current base policy face amount to the qualified charitable organization(s) chosen by the policy owner at no additional cost. This benefit is in addition to the death benefit payable by the base policy and any other riders. Therefore this rider benefit will be considered when evaluating retention limits and reinsurance considerations. Availability The rider may only be elected at issue for policies with a minimum face amount of $1 million. The rider cannot be added after issue. The minimum benefit amount is $10,000 (1% of $1 million). The maximum benefit is $100,000, payable for base policy face amounts of $10 million and above. The ROPR face IU ADL (4/11) 18 Catalog #

19 amount is not considered when determining face amount eligibility or the charitable payment amount. If the face amount on a new business application is split between multiple policies or multiple new business applications are submitted on the same life, then each policy may be eligible for the maximum benefit of $100,000, payable for base policy face amounts of $10 million and above. The rider is available for guaranteed issue and qualified plans. The rider is not available for the International Underwriting Program. No special underwriting will be required for the rider. If the base policy face amount is reduced after issue, by request, partial withdrawal or death benefit option change from A to B, the benefit will be payable on the face amount at the time of the Insured s death, provided the face amount is at least $1 million. If at the time of the Insured s death the face amount has been decreased below $1 million, then no benefit is payable. Electing the Rider The designated beneficiary of the rider must be an accredited 501 (c) organization under IRS code 170. A listing of valid organizations is available at The rider must be requested on the Optional Benefits Supplement (Form numbers (03/09), for states that have approved the new application form AMIGV2009, and (03/09), for states that have not approved the new application form). The name and address of the designated charity and the charity s Tax-ID must be provided on the Optional Benefits Supplement. The charity should be contacted directly to obtain the Tax-ID number. If the required information is not provided, the rider will not be issued. Restrictions on the Charitable Beneficiary Death Benefit At least one beneficiary must be named, but up to 2 beneficiaries are permitted. The percentage allocation to each beneficiary may be specified; if not specified, the payment will be evenly divided. Changes to the designated charitable beneficiary will be allowed after issue. The change form will require the name and address of the organization and the 501 (c) taxpayer ID. AXA Equitable will also validate the exempt status of the charitable beneficiary. Owner changes on a policy with this rider will require either a new charitable beneficiary to be specified or confirmation that the existing charitable beneficiary(ies) may remain on the policy. The exempt status of the organization named as beneficiary must be validated at the time of the Insured s death. If the Charitable Beneficiary is not in existence, or no longer accredited, at the time the Charitable Gift Amount is payable, the Owner (or the Owner s estate representative, if the Owner is the Insured) will name a new Charitable Beneficiary to whom the benefit will be payable. If the Charitable Beneficiary is not in existence or no longer qualifies as a 501 (c) 3 charity, and a new accredited Charitable Beneficiary is not named then no proceeds will be payable under this rider to any charity. In both instances a written notice will be sent to the policy owner requiring that we receive a written response by the time the base policy claim is approved to be paid. IU ADL (4/11) 19 Catalog #

20 Taxation Voluntary interest from the date of death is required to be paid on any Charitable Benefit Amount as with the base policy death claim benefit. Upon payment of the charitable benefit, AXA Equitable will report to the IRS that a payment was made to the charitable organization(s). Cost We believe that no portion of any premiums paid for the policy are eligible for charitable deduction purposes on account of the rider. For policies owned by the Insured, the benefit payment may be taken as an Estate Tax Deduction or would otherwise not cause a higher Federal estate tax burden on the owner's estate. For Third Party Policy Owners, owners should consult their tax advisors as to their specific situation on whether the benefit payment may be able to qualify as eligible for an income tax charitable deduction. For non-individual owners, including trusts and corporations, owners should consult their tax and legal advisors as to the specific appropriateness or consequences of electing the rider and providing for charitable beneficiary. There is no charge for this rider. Termination The rider will terminate and no further benefits will be paid on the earliest of: Termination of the policy; Surrender of the policy; The date we receive the policy owner s written request to terminate the rider; The date of the Insured s death; and The date the policy is placed on Loan Extension. If the base policy lapses and is subsequently restored, the rider will be reinstated Compensation There is no commissionable target premium component for this rider. 3) Return of Premium at 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 accumulation rate specified by the policy owner. Availability The maximum ROPR Face Amount is generally four times the initial base policy Face Amount. A lesser amount may be specified by the underwriter or requested by the client. ROPR is only available at issue with non-qualified policies that are Option A. Available with CVPlus rider. DDW, and LTCS riders are not available if ROPR is elected If ROPR is elected, the NLG period will be five years, even if ROPR is terminated after issue. IU ADL (4/11) 20 Catalog #

21 The accumulation rate the policy owner chooses can range from 0% (no accumulation) to 6% in whole percentages. This rate may be changed after issue, as described later in this section. The policy owner may specify the percentage of premiums to be included in the ROPR death benefit from 15% up to 100%. The percentage is selected at issue and may not be changed. New Business Procedures for Policies with ROPR It is important that Financial Professionals follow the procedures below to facilitate the underwriting and policy issuance process for policies electing ROPR. If the sale involves premium financing, there are certain eligibility requirements the Financial Professional must meet before an application can be taken. It is important to note that payment cannot be taken nor a Temporary Insurance Agreement given for policies electing ROPR. ROPR Cover Memo A cover memo from the Financial Professional must accompany all applications for ROPR to assist the underwriter in their initial evaluation of the case, including determination of the appropriate new business underwriting requirements. The cover memo should indicate the: Purpose of the insurance; Base policy Face Amount being applied for; and Maximum ROPR Face Amount desired, if less than 4 times the initial base policy Face Amount. If the case involves Premium Financing, the memo must also include the: Name of the case contact, if any; Name of the third party lending institution; and Name of the premium financing program. ROPR Conforming Illustration If ROPR is elected on the application, a conforming illustration must be submitted with the application to facilitate underwriting. ROPR Underwriting Requirements ROPR can generate a substantial amount of coverage over the life of a policy (i.e., up to four times the base policy Face Amount). This additional liability complicates the underwriting process. The new business requirements that are automatically posted to Webstation take into account the maximum ROPR Face Amount, i.e., four times the initial base policy Face Amount. However, underwriting will be based on the sum of the base policy Face Amount plus the maximum ROPR face amount indicated on the Information Page of the Illustration. Accordingly, the underwriter will adjust the new business requirements as needed. Before a Financial Professional secures any underwriting requirements, they should consult directly with the underwriter assigned to the case to ensure that all of the requirements shown on Webstation are necessary. The underwriter may need to limit the maximum amount of coverage under the rider to less than four times the base policy Face Amount because of AXA Equitable s retention limits or reinsurance considerations. Failure to consult with the underwriter beforehand may result in the ordering of unnecessary requirements. IU ADL (4/11) 21 Catalog #

22 Policy Issue The policy, if approved, will be issued subject to a policy amendment (PF237) specifying the maximum ROPR Face Amount. The maximum ROPR Face Amount, the ROPR percentage of premiums, and the ROPR Accumulation Rate are shown in the policy. There may be other delivery requirements including, but not limited to, a new conforming AXA Equitable illustration. 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%; 2) Any subsequent premium payments prior to age 100 will increase the ROPR Face Amount by an amount equal to the same percentage of the premium paid, effective as of the date received at the our administrative office; 3) Each partial withdrawal 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; 4) The ROPR Face Amount is increased on each policy anniversary up to and including the Insured s attained age 100 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; 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. 6) ROPR increases either due to premium payments or the application of the accumulation rate will not increase the ROPR Face Amount above the Maximum ROPR Face Amount. Death Benefit Under Death Benefit Option A, the total Death Benefit for a policy with ROPR equals the greater of a) the sum of the base policy Face Amount plus the ROPR Face Amount, or b) a percentage multiple of the amount in the Policy Account. Under Death Benefit Option B, the total Death Benefit for a policy with ROPR equals the greater of a) the sum of the base policy Face Amount plus the ROPR Face Amount plus the amount in the Policy Account, or b) a percentage multiple of the amount in the Policy Account. (Note that the ROPR Face Amount would have been accumulated while the policy was under Death Benefit Option A). The ROPR Death Benefit is equal to any excess of the total Death Benefit described in the preceding bullets over the base policy s Death Benefit. ROPR Changes Changes in ROPR coverage must be requested in writing to the NOC on a properly signed and completed form AMICA-2006, and are subject to our approval. If the policy is collaterally assigned, the assignee must sign the Request for Policy Change. Note: It is not possible to change the percent of premiums that should be returned once the policy is issued. IU ADL (4/11) 22 Catalog #

23 Tax Impact of ROPR Changes The chart on page 53 summarizes the tax impacts of changes to ROPR coverage. ROPR Face Amount Decreases A request for a ROPR Face Amount Decrease must be made prior to the policy anniversary nearest the 100th birthday of the Insured person. We reserve the right to decline or limit a requested decrease if it would cause the policy to fail to qualify as life insurance. Unless specified otherwise, any subsequent increases in rider Face Amount due to premium payments or by application of the Accumulation Rate will continue, subject to the rider s Cessation of Increases provision. Cessation of ROPR Increases ROPR increases are frozen, that is, the ROPR Face Amount no longer increases due to premium payments and annual application of the ROPR Accumulation Rate, on the earliest of the following dates: On the date that the ROPR Face Amount equals the ROPR maximum Face Amount; At the beginning of the policy month that coincides with or next follows the date we receive the policy owner s written request to stop any further increases; On the policy anniversary nearest the 100 th birthday of the Insured person; On the effective date of a death benefit option change to Option B; or On the effective date of a requested increase in the base policy Face Amount. Once increases in the ROPR Face Amount cease, the rider Face Amount will not increase due to premium payments or the annual application of the Accumulation Rate. After increases cease, they cannot be started again, even if there is a subsequent reduction in the rider s Face Amount or a switch back to death benefit Option A. Changes to the ROPR Accumulation Rate: The accumulation rate may be a whole percentage from 0% to 6%. The change is subject to the following, and may be made prior to the Insured s attained age 100: Cost A requested decrease in the rate will take effect on the policy anniversary that coincides with or next follows the date the request is approved; A requested increase in the rate requires evidence of insurability of the Insured person and is subject to underwriting and reinsurance limits. The increase will take effect on the policy anniversary that coincides with or next follows the date the request is approved. On a current (non-guaranteed) basis, the rider cost of insurance charge, including any Flat Extra charges for the ROPR Face Amount is deducted each month from the Policy Account until the Insured s attained age 100. (Flat extra charges apply until their expiry date.) On a guaranteed basis the rider cost of insurance charge applies until the Insured s attained age 121. The rider uses the same current (non-guaranteed) and guaranteed maximum cost of insurance rates as the base policy. IU ADL (4/11) 23 Catalog #

24 Termination 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 is subject to the same reinstatement requirements as the policy. Compensation Upon reinstatement, the rider Face Amount will be equal to the ROPR Face Amount at termination plus the restoration premium, multiplied by the Specified Percentage of premium paid (unless ROPR increases previously ceased), but not more than the maximum rider Face Amount. There is no commissionable target premium component for this rider. 4) Disability Waiver of Monthly Deductions (DDW) This rider waives all monthly deductions from the Policy Account upon proof that the Insured has been totally and continuously disabled for at least six months. AXA Equitable will credit the monthly deductions taken during those 6 months to the Policy Account when the claim is approved. This rider is useful in protection-oriented sales scenarios where the goal is to keep the policy in effect during a disability. Availability Issue Ages are Features The proposed Insured must not be rated higher than the equivalent of a class D or a flat extra of $10.00 or more per thousand. The maximum amount of coverage under DDW is $3,000,000 for all AXA Equitable (and/or any affiliated company) policies in force and applied for. DDW is not available with policies that elect ROPR. The rider terminates on the policy anniversary nearest the Insured s 65 th birthday. While the policy is on waiver: Monthly deductions are waived (including those for the CVPlus rider) for as long as total disability continues if it begins before the policy anniversary nearest the Insured s 60th birthday. If total disability begins on or after this date (age 60), the monthly deductions are waived to the earlier of the policy anniversary nearest the Insured s age 65 or termination of disability. Insurance under the policy and benefits under other riders continue according to their terms, provided any policy loan and accrued loan interest do not exceed the Cash Surrender Value.. Partial withdrawals and policy loans are available. The policy owner is billed for loan interest on the policy anniversary. If the interest is not paid, it will be added to the loan balance. The policy may terminate if the Net Cash Surrender Value (which is the Cash surrender Value less any loan and accrued loan interest) is less than zero. In this instance, the policy owner will be sent a lapse notice and given 61 days to remit the required payment. IU ADL (4/11) 24 Catalog #