Athena Universal LifeSM
Cash Value Plus Rider
case study
Minimizing Collateral on Premium Finance Cases
AXA Equitable’s Athena Universal Lifesm (Athena ULsm) policy offers a
Cash Value Plus (CVPlus) Rider, which provides higher cash values
if the policy is fully surrendered in policy years 1–8. It can also help do you have clients like this?
minimize collateral where clients are financing their life insurance • Have a life insurance need
premiums. We offer:
• Are middle-aged to age 75
• The opportunity for high cash value and internal rate of return
• Want flexibility in planning
(IRR) relative to the premiums paid.
• Have high life insurance premiums and
– Depending on the client’s age, the cash surrender value need to minimize their gift taxes
(CSV) may exceed 100%.
• Own illiquid assets or need to preserve
• Attractive and competitive riders, including a Return of Premium assets for other purposes.
(ROP) rider with up to a 6% accumulation rate.
• Need to minimize the out-of-pocket assets
• AXA Equitable’s target compensation and spread using the pledged as collateral, or the cost of the
CVPlus Rider. It offers generous first year and trail compensation. letters of credit as part of financing
Situation
George is a 60-year-old male and needs $5,000,000 of death benefit to cover his estate. His gifting options are
limited since he is in the process of transferring his business as part of a gifting strategy. At the moment:
• George and his wife already have plans for their annual exlcusions.
• They have used their lifetime exemption as part of the transfer strategy.
• His business and related real estate holdings are relatively illiquid.
Life Insurance: • Is Not a Deposit of Any Bank • Is Not FDIC Insured • Is Not Insured by Any
Federal Government Agency • Is Not Guaranteed by Any Bank or Savings Association
• Variable Life Insurance May Go Down in Value
For Financial Professional Use Only. Not for Use with, or Distribution to, the General Public
Strategy
George and his financial professional determined that a potential solution is Premium Financing with AXA Equitable’s
Athena ULsm using the CVPlus Rider. See how the addition of CVPlus helps reduce George’s need for outside collateral
in the chart below:
Cash Surrender Outside Collateral Outside Collateral
Cumulative Cash Surrender
Policy Year Value WITHOUT Required WITH Required WITHOUT
Premium Borrowed Value WITH CVPlus
CVPlus CVPlus CVPlus
1 $340,000 $340,398 $87,011 $0 $252,981
2 $680,000 $687,258 $432,164 $0 $247,836
3 $1,020,000 $1,029,362 $795,968 $0 $224,032
4 $1,360,000 $1,384,311 $1,176,917 $0 $183,083
5 $1,700,000 $1,732,671 $1,574,432 $0 $125,568
This is a supplemental illustration and must be read in conjunction with the basic illustration. The basic illustration contains values using the
same underwriting assumptions as this supplemental at both guaranteed charges and guaranteed interest rates and contains other important
information. The values represented here are for a $5,000,000 Athena ULsm policy with Return of Premium (ROP) rider on a 60-year-old male
preferred non-smoker. Values are provided with and without the addition of the CVPlus Rider. The values reflect the $340,000 of premium
payable seven years and illustrated at a 4.75% rate of return and current charges. If the client were to receive a guaranteed rate of return
and maximum charges were assessed in the policy, the policy would fail in year 18. Please refer to the basic illustration for more information.
Important Considerations
• The rider may be elected only at issue and only with • CVPlus is not available on policies with the
non-qualified plans.1 Long-Term Care Servicessm Rider (LTCSR).
• Issue ages vary by underwriting class and tobacco • Minimum face amount: $1,000,000 at issue.
user status, ranging between ages 0–75. Minimum premium: $50,000.
• There is a one-time set-up fee of $250.
For More Information, Please Contact:
Enter Contact Information Here
1 Except in Florida where CVPlus is also available for policies issued in qualified plans.
Things to consider about Premium Financing: The life insurance purchase and the loan are separate and distinct transactions conducted by
separate entities. A person may qualify for the loan, but not the insurance or vice versa. Borrowing funds to pay insurance premiums may be
completed only with a properly licensed lending institution. Neither AXA Equitable nor its agents are licensed by any state to act as a lender.
The above-named firm is not affiliated with AXA Equitable or AXA Distributors. AXA Equitable life insurance sold by unaffiliated financial
professionals is distributed through AXA Distributors, LLC.
This material should not be considered tax or legal advice. Clients should always consult with their tax and legal advisors regarding their
individual circumstances.
Athena ULsm is issued by AXA Equitable Life Insurance Company (AXA Equitable), New York, NY 10104, (212) 554-1234, and co-distributed
by AXA Network, LLC and its subsidiaries and AXA Distributors, LLC. All guarantees are based on the claims-paying ability of AXA Equitable.
Athena ULsm and Long-Term Care Servicessm are service marks of AXA Equitable.
© 2010 AXA Equitable Life Insurance Company. All rights reserved.
1290 Avenue of the Americas, New York, NY 10104, (212) 554-1234
G23717
IU-52938 CFF (1/10) Cat. #144953 (1/10)
For Financial Professional Use Only. Not for Use
with, or Distribution to, the General Public.