Retirement Cornerstone - Axa Cornerstone Apr 2012... · ... Retirement Cornerstone® is a...

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AXA Equitable Life Insurance Company (NY,NY) 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 Retirement Cornerstone ® variable annuity with guaranteed benefit riders Helping to Protect your Income in Unpredictable Markets GE-68809 (6/12) http://www.brainshark.com/axalearning/vu?pi=zGgz7q0Ghz6Epdz0&intk=946969107

Transcript of Retirement Cornerstone - Axa Cornerstone Apr 2012... · ... Retirement Cornerstone® is a...

AXA Equitable Life Insurance Company (NY,NY) GE-65526 4/12) (exp 4/14)

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

Retirement Cornerstone® variable annuity

with guaranteed benefit riders

Helping to Protect your Income

in Unpredictable Markets

GE-68809 (6/12)

http://www.brainshark.com/axalearning/vu?pi=zGgz7q0Ghz6Epdz0&intk=946969107

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

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.

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AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Retirement Considerations

Retirement Challenges

Longevity

Inflation

Volatility

Interest Rates

Taxes

L

I

V

I

T

3 AXA Equitable Life Insurance Company (NY,NY)

GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Interest Rates & Inflation

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50 years

<2% 2-4% 4-6% 6-8% 8-10% >10%

Annual 10-Year Treasury Yields 1962-2011 in more details

2000 6.03%

1997 6.35%

1996 6.44%

1995 6.57%

1994 7.09%

1992 7.01%

1991 7.86%

1986 7.67%

1977 7.42%

1976 7.61%

1975 7.99%

1974 7.56%

1973 6.85%

1970 7.35%

1969 6.67%

1972 6.21%

1971 6.16%

1990 8.55%

1989 8.49%

1979 9.43%

1978 8.41%

1988 8.85%

1987 8.39%

2007 4.63%

2006 4.80%

2005 4.29%

2004 4.27%

2003 4.01%

2002 4.61%

2001 5.02%

1999 5.65%

1998 5.26%

1993 5.87%

1968 5.64%

1965 4.28%

1964 4.19%

1967 5.07%

1966 4.93%

1985

1984

1981

1980

1983

1982

10.62%

12.46%

13.92%

11.43%

11.10%

13.01%

2010 3.22%

1963 4.00%

1962 3.95%

2009 3.26%

2008 3.66%

6 times

Source: www.federalreserve.gov

2011 2.78%

AXA Equitable Life Insurance Company (NY,NY) GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Investment Account

Protected Benefit Account

AXA Equitable’s Retirement Cornerstone®

Wide-range of asset classes & full

spectrum of portfolio management styles

Well-known money

managers and flexibility to access and transfer among Investment Options

Guaranteed Income for Life and Beneficiary Protection1

Guaranteed Minimum Income

and Death Benefits are optional riders, each available for an additional fee

1If 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 Equitable Life Insurance Company GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

A Guarantee that May Be Able to Protect You Today…

and Tomorrow!

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Compound

Growth (%)

Variable 2 year

rate lock

Time

4%

8%

Roll-up

Rate

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%.

AXA Equitable Life Insurance Company (NY,NY) GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Annual Reset

0

0

Protected Benefit

Account

Annual Roll-Up Benefit Base Reset

Benefit Base

Range

$

Reset

Contract Anniversaries

% Compounded Growth

% Compounded Growth

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AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Receiving Income

10 year US Treasury Rate

+1% Benefit Base

Withdraw Amount Allowed

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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.

AXA Equitable Life Insurance Company (NY,NY) GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Benefit Base and Deferral Bonus Rate

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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%.

AXA Equitable Life Insurance Company (NY,NY) GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Investment Account

Not all money managers may be listed

GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Retirement Cornerstone®

GE-68809 (6/12)

AXA Equitable Life Insurance Company (NY,NY) GE-65526 (11/11)

Important Information

Retirement Cornerstone® is a registered service mark of AXA Equitable Life Insurance Company, New York, NY 10104.

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.

© 2012 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 # 149972 (5/12)

12 AXA Equitable Life Insurance Company (NY,NY) GE-68809 (6/12)