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Corporate Owned Incentive LifeSM


Corporate-Owned Life Insurance

Premium Flexibility

Tax Advantages

Choice of Two Death Benefits


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This page highlights some of the features and benefits of this product. For more complete details, please download the full prospectus and product fact card, above.

  • Key Features
  • Investment Options
  • Next Steps

Permanent Life Insurance Protection

 

 

 Corporate Owned Incentive LifeSM is a flexible premium variable life insurance policy designed primarily for corporations and partnerships where the firm is generally the owner and beneficiary of the policy. It can be used to informally fund Deferral and Supplemental Executive Retirement Plans (SERPs). It can also be used in Split Dollar Plans, as long as the plan meets AXA Equitable's requirements. This policy is priced to have minimal impact upon the employer's balance sheet at purchase.

Requirements1

 To qualify for this policy, the following must be met at issue:

  • All Insureds must be deemed "highly compensated" by AXA Equitable
  • The policies must be part of a corporate- sponsored plan (e.g. corporate owned, or individually owned as part of a non-qualified benefit plan) and the initial premium must be remitted by the employer
  • The aggregate annualized first-year premium for all policies must be at least $100,000. At least two policies on different Insureds must be issued

Growth Potential: Variable Investment Options

 

 

 Corporate Owned Incentive LifeSM offers the opportunity to direct how a portion of your premium payments and Policy Account Value are invested among a variety of stock, bond, international and money market variable investment options, managed by some of the industry’s most recognized investment management firms. Variable life insurance policy values are not guaranteed, will fluctuate based on the performance of the underlying investments and may be worth more or less than the premiums you paid. 

Guaranteed Interest Option

 For those looking for more stability, we also offer a guaranteed interest option (GIO).  All guarantees and contractual obligations are based on the claims-paying ability of AXA Equitable.

Tax Advantages

 Transfers among the investment options are tax-free, as are loans or withdrawals if they are structured properly. Transfers may be limited in certain circumstances and restrictions may apply to prevent disruptive transfer activity. Plus, any death benefits paid to your beneficiaries are generally paid federal income tax-free.

Any potential earnings within the Corporate Owned Incentive LifeSM policy accumulate on a tax-deferred basis and are not reduced by income taxes unless or until there is a taxable distribution from the policy.2

Premium Flexibility

 Premium payments are flexible. After an initial payment, the amount and timing of your premium payments is flexible (subject to certain minimums and maximums).

Death Benefit Options

 Corporate Owned Incentive LifeSM has two death benefit options:
  • Option A – Level Death Benefit is equal to the Face Amount of the policy
  • Option B – Face Amount Plus the Cash Surrender Value

Under either option, a higher death benefit may apply if the value in the Policy Account reaches a certain level relative to the Face Amount. Changes in the death benefit option are available at no charge after the second policy year.

Rider

Integrated Term Rider (ITR)

Available when the aggregate target premium equals or exceeds $500,000. The sum of the base policy Face Amount and ITR Face Amount establishs the Target Amount. The Target Amount and the Death Benefit Option chosen determine the death benefit under the policy. The per $1,000 of Face Amount charge does not apply to ITR Face Amount. For more complete details, refer to the prospectus.

Fees and Charges

 There are fees and charges associated with variable life policies, including cost of insurance charges, surrender charges, administrative and investment management fees, mortality and expense charges, and charges for optional benefits. For more detailed information, please refer to the prospectus and fact card links above.

Corporate Owned Incentive LifeSM variable life insurance is offered by prospectus. This web content information must be accompanied by a current prospectus which contains more complete information about the policy including risks, charges, expenses and investment objectives.  You should read the prospectus and consider the information carefully before purchasing.

Life insurance is subject to exclusions, limitations, and terms for keeping it in force. Your financial professional can provide you with costs and complete details.

1 Subject to change at company discretion.

2 Under current federal tax rules, you generally may take income-tax-free partial withdrawals under a life insurance policy that is not a Modified Endowment Contract (MEC), up to your basis in the contract. Additional amounts are includible in income. The IRS places a limit on how much money can go into life insurance premiums for the policy and how quickly such premiums can be paid in order for the policy to retain all of its tax benefits. If certain limits are exceeded, a MEC results and MEC policyholders may be subject to taxes on distributions on an income-first basis, that is, to the extent there is gain in the policy and penalties on any taxable amount if they are not 59½ or older. Loans taken will be free of current income tax as long as the policy remains in effect until the insured’s death, does not lapse, and is not a MEC.

Please note that outstanding loans accrue interest. Income-tax-free treatment also assumes the loan will eventually be satisfied from income-tax-free death benefit proceeds. Loans and withdrawals reduce the policy’s cash value and death benefit and increase the chance that the policy may lapse. If the policy lapses, is surrendered or becomes a MEC, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for distribution of policy cash values.

Please be advised that this Web content is not intended as legal or tax advice. Accordingly, any tax information provided on this Web page is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.

All employer and business-owned policies need to satisfy federal tax and notice consent requirements before issuance for certain federal tax benefits.  See the tax section of the prospectus for additional information including special rules that may apply to corporate or employer-owned policies.

Corporate Owned Incentive LifeSM, a flexible premium variable life insurance policy, is issued by AXA Equitable Life Insurance Company, New York, NY 10104, and is co-distributed by AXA Advisors, LLC and AXA Distributors, LLC (members SIPC). AXA Equitable, AXA Advisors and AXA Distributors are affiliated companies do not provide tax or legal advice.

Certain types of policies, features and benefits may not be available in all jurisdictions or may be different.

All guarantees and contractual obligations are based on the claims-paying ability of AXA Equitable Life Insurance Company.

Corporate Owned Incentive LifeSM is a service mark of AXA Equitable Life Insurance Company.

Policy form #08-300 or state variation

GE-47000 (12/08)


Variable Investment Options

Growth Potential

Our variable investment options offer the opportunity to direct how your annuity contributions or life insurance premium payments are invested among a wide array of stock, bond, international and money market investment options.

This access provides an opportunity for growth of your account value.  Please keep in mind that variable investment options are subject to fluctuations in value and market risk, including loss of principal.

Quality

Evaluating investment options has never been easy. And in today’s investment environment, where investors have literally thousands of choices, you need an objective and expert guide.

Through a multiple-step selection process, we systematically narrow the universe of money management firms to identify money managers that are best suited to meet specific investment goals.

Many of our money managers are household names you’re sure to recognize. Others are better known among large institutional investors.

Choice

Our variable investment option platform is designed to help meet the needs of a wide variety of investors, while being responsive to an ever-changing market environment. We offer a carefully selected menu of investment options that meets the needs of diversification-minded investors, while accommodating individual preferences and risk appetites.

Simplicity

For investors who want a simplified approach to building a diversified portfolio, a series of asset allocation portfolios are available. No matter which series you choose, each portfolio is constructed as a "fund-of-funds," diversified by AXA Equitable’s team of investment specialists. With one simple investment, you gain access to the combined performance of multiple portfolios, depending on the strategy chosen.

The Benefits of AXA Allocation Portfolios Managed by AXA Equitable 

  • Tailored to Meet Your Goals — you can pursue your individual goals whether based on your personal risk tolerance or time horizon
  • Convenient — you get a well-diversified investment program in a single portfolio, utilizing multiple money managers, asset classes and investment styles
  • Professionally Managed — you can access well-established money managers, monitored continuously and replaced when necessary
  • Automatic Rebalancing — portfolios are rebalanced regularly by trained professionals to keep your investment on track

Please note that AXA Allocation Portfolios entail fees and costs in addition to the fees and costs incurred in the Portfolios' underlying investment earnings.

 Performance

As many investors have learned, a portfolio manager can suddenly leave a firm, or deviate from his or her investment style in pursuit of short-term returns. Many times these changes occur without the investors’ knowledge, which could alter the course of a disciplined investment strategy.

That’s why our seasoned team of investment professionals continuously “manages the managers” once they have been selected. This is a dynamic process that holds each money manager accountable and keeps them focused on delivering consistent, long-term results.

Learn More

To learn more about the individual investment options, such as investment strategy, Morningstar rating, top holdings and more, browse our Variable Investment Portfolio Fact Sheets.

You should consider the charges, risks, expenses, and investment objectives carefully before investing.  Please click the link at the top of this page to download the product prospectus, which contains this and other information

Variable products are issued by AXA Equitable Life Insurance Company (NY, NY) and are co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC.

GE 43448 (3/08)


Professional Guidance Counts

Your financial professional can be an invaluable resource in helping you:
  • Complete a financial needs analysis
  • Evaluate the financial strategies available to you, and
  • Select appropriate financial products designed to help you reach your goals

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