Topics

Loans

• How does a policy loan affect my coverage?
  Any outstanding indebtedness will be deducted from the proceeds payable at lapse, surrender, maturity, or payment of the death claim. Therefore, it is in the client's best interest to make loan repayments whenever possible. Loan repayments will also reduce future loan interest payments.

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• How can loan repayments be made?
  Loan repayments can be made at your convenience in amounts of $10.00 or more by sending a check indicating the policy number and how the money is to be applied, to MONY Life of America, PO Box 4830, Syracuse, NY 13221. Additional loan repayment options are available such as:

  • use any current dividend earned to reduce your loan balance
  • withdraw the existing cash value of accumulated dividends to reduce the loan balance
  • establish an automatic monthly deduction from your checking account by signing and submitting a proper Authorization Form.
  • Click here for a printable form.:
  • make payments Online through AXA-Equitable.com. Login or Register. Click on "Make a Payment" from the "Choose an Option" drop down box."

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• What is loan interest?
  Like most financial institutions, we charge loan interest on the policy anniversary date to compensate for our loss of investment earnings from the borrowed amount. Please refer to your contract for details concerning your policy's loan interest rate.

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• How is loan interest charged?
  Loan interest accrues daily on the unpaid loan balance and is due once a year on the policy anniversary date or upon full repayment of the loan principal. In most circumstances, if the loan interest remains unpaid at the end of the 31-day grace period, it will automatically be added to the existing loan balance, becoming interest-bearing loan principal.

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• How can I access the funds in my policy and keep my valuable insurance protection?
  There are several options that may be available to you:

  • Withdraw any dividend for cash
  • Withdraw any dividend cash value to help pay premiums
  • Withdraw available dividend cash value to reduce any outstanding loan balance and/or pay loan interest
  • Take a loan against the policy's cash value
  • Take a policy loan to help pay premiums

  
  Note: Please keep in mind when borrowing against the cash value, that loan interest will accrue daily and will be due on the policy anniversary date. Any outstanding indebtedness will be deducted from and will reduce the proceeds payable at surrender, lapse, or payment of a claim. Furthermore, withdrawals of dividend cash value will reduce the proceeds payable at surrender, lapse or payment of claim.

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• How can I confirm my policy's current cash value?
  Online through AXA-Equitble.com. Login or Register The Portfolio Summary screen will list your policy's Net Cash Surrender Value and the date this value was calculated. Net Cash Surrender Value reflects deductions from your policy's cash value for any loan and loan interest and any surrender charges, if they apply. Please note that values given may not reflect transactions, credits or deductions processed during the prior or current business day.

  By calling our toll-free number at 1-800-487-6669, you can also obtain policy values by following the prompts. You will be asked to enter some information for security purposes (last 4 digits of your Social Security Number as well as the month and day from your Date of Birth). You will also be asked to enter your policy number.

  If you do not have your policy number at hand, please press "0" to be connected to a Customer Service Representative.

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• What is the maximum amount I can borrow?
  You can obtain this information online,through AXA-Equitable.com. Login or Register. Click on "Loan Request" in the "Choose an Option" drop down box. The available loan amount and current interest rate (which may be subject to change) that would apply to a loan is shown in the" Loan Information" section. Before deciding that a policy loan is the best option, you may want to discuss it with your Financial Professional and ask for an illustration of how a loan may impact your policy's values. If you choose to process a loan request, you will also want to carefully review the Terms and Conditions available in AXA-Equitable.com.

  You can also confirm the maximum policy loan amount by calling our toll-free number at 1-800-487-6669. You will be asked to enter some information for security purposes (last 4 digits of your Social Security Number as well as the month and day from your Date of Birth) and enter your policy number.

  If you do not have your policy number at hand, please press "0" to be connected to a Customer Service Representative.

  The amount that you can borrow, as well as the current interest rate (which may be subject to change) that will be charged on the outstanding loan amount, will be voiced.

  Please note that values given may not reflect transactions, credits or deductions processed during the prior or current business day. You can request a cash loan, if you are the Owner of the policy, by speaking to a Customer Service Representative.

  Please note that any unpaid policy loan balance and interest will reduce your policy's death benefit and cash value. Interest will be billed annually, on your policy's anniversary. If you do not pay the amount due, it will be added to the amount of the loan and next year's interest will be based on this new loan amount. You may make policy loan repayments at any time.

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• How do I request a loan check?
  You can request a loan:

  • Online through AXA-Equitable.com. Login or Register Click on "Loan Request" from the "Choose an Option" drop down box.
  • By filling out a Service Request Form. Click here for a printable form.
  • By calling our toll-free number at 1-800-487-6669 and speaking to a Customer Service Representative

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• Do I have to repay the loan?
  You can repay all or part of your loan at any time. Please note that unpaid policy loan balance and interest will reduce your policy's death benefit and cash value.

  Interest will be billed annually, on your policy's anniversary. If you do not pay the amount due, it will be added to the amount of the loan and next year's interest will be based on this new loan amount. If the cash surrender value is ever insufficient to pay the loan balance, including unpaid loan interest, the policy could lapse.

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• What is the effect of a loan on a policy that is a MEC (Modified Endowment Contract)?
  If your policy is a MEC (Modified Endowment Contract) the tax treatment of any death benefit provided under the contract will still qualify for income tax free treatment. However, you may be subject to additional taxes and penalties on any distributions from your policy during the lifetime of the insured. Any distribution from a policy that is a MEC will be taxed on an "income-first" basis. Distributions for this purpose include a loan (including any increase in the loan amount to pay interest on an existing loan or an assignment or a pledge to secure a loan) or withdrawal. Any such distributions will be considered taxable income to you to the extent there is gain in the policy at the time of distribution. That is, the distribution will be includible in income up to the amount your account value exceeds your basis in the policy.

  A 10% penalty tax also will apply to the taxable portion of most pre-age 59 1/2 distributions from a policy that is a Modified Endowment Contract.

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