retirement cornerstone 12 variable annuity series b · iu-67549 (03/12) for financial professional...

Retirement Cornerstone® 12 Variable Annuity

Series B

©2012 AXA Equitable Life Insurance Company (AXA Equitable), N.Y., N.Y. - All Rights Reserved

Sales Support – Training Strategy and Content

For Financial Professional use only. Not to be used with or distributed to the general public.

IU-68696 (05/12)

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

Retirement Cornerstone®

New! 80/20 Equity-

Fixed Allocation

Strategy

100+ Investment

Options

Access to

Guaranteed

Lifetime Income

Upside market

Potential

Flexible Roll-up

Rate tied to U.S.

10 year Treasury

Roll-up Rate as

high as 8%, but

never below 4%

Annual Resets

Funds Guaranteed

Minimum Income

Benefit1

1An optional rider available for an additional fee

IU-67549 (03/12) For Financial Professional Use only. Not for use with or distribution to the general public.

Objectives

After completing this course you will be able to:

Explain the Investment Options available with the Retirement Cornerstone 12 Variable Annuity

Describe the Contract Features and Provisions of Retirement Cornerstone 12 Variable Annuity

Discuss the Transfer features of Retirement Cornerstone 12 Variable Annuity

Identify Charges and Expenses associated with Retirement Cornerstone 12 Variable Annuity

Explain the Optional Guaranteed Benefits available with Retirement Cornerstone 12 Variable Annuity

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Overview

Retirement Cornerstone 12 is a deferred annuity contracts issued by AXA Equitable Life Insurance Company.

The Retirement Cornerstone 12 variable annuity can:

Provide an opportunity for the accumulation of retirement savings and for income.

Offer income and death benefit protection through guaranteed benefit riders.

Offer a way to help your clients with an opportunity to accumulate, guarantee and control

future income today and protect their families along the way.

Retirement Cornerstone 12 variable annuity also offers two distinct accounts within the same variable annuity,

with each account serving a somewhat different purpose for retirement planning:

Investment Account – give clients access to a wide

range of investment portfolios

Protected Benefit Account – emphasizes more

focused investing and gives your clients access to a number of optional guaranteed benefits.

Certain features and benefits may not be available in all jurisdictions. Not all features and benefits are

available through all selling Broker Dealers. Please check with your Broker Dealer for availability. Please refer

to the final slide of this course, the product prospectus and other sales materials provided by AXA Equitable or

contact the AXA Distributors Sales Desk for additional information.

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Retirement Cornerstone – Series B

Series B

Markets Non Qualified

Traditional/Roth IRA

Inherited IRA

Qualified Plans (DC/DB)

Initial Minimum Contributions $5,000

Subsequent contributions NQ; QP: $500

IRA : $50

Inherited IRA: $1,000

Mortality & Exp

Administrative

Distribution

Total Contract Fee

0.80%

0.30%

0.20%

1.30%

Withdrawal Charges 7 Yrs: 7%,7,6,6,5,3,1

Bonus Credit N/A

Dollar Cost Averaging Programs Special DCA; General DCA

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Investment Options

Each contract under Retirement Cornerstone 12 is issued with the Investment Account, consisting of a

wide range of investment options covering all major asset classes, including sector-focused portfolios

and other alternative/specialty investments. In addition to the Investment Account, contracts that are

issued with optional guaranteed benefits will have the Protected Benefit Account, whose sole purpose

is to be the funding vehicle for the guaranteed benefits.

Investment Account: The lineup of investment options under the Investment Account features a

broad range of over 100 investment options from well-known and well-respected investment

management organizations. This account offers the client the opportunity to choose from a diverse

lineup across several dimensions, including single or multiple managers, passive or active

management and domestic or international investments. There are some sector-specific choices

including science, technology and financial services, and some that are focused on hard assets such

as real estate, energy and other commodities.

Protected Benefit Account: The Protected Benefit Account offers an innovative selection of

investment options that are designed to help the client continue to build assets while, through a rider,

ensuring future income-generating power. With the portfolios available, the owner can choose a

portfolio according to his or her specific risk tolerance, and at the same time ensure a solid foundation

for the growth of the benefit bases for the elected guaranteed optional benefits.

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Contract Features and Provisions

Systematic Account Sweep Program:

Clients may want to systematically shift money from the Investment Account into the Protected Benefit Account in order to take increasing advantage of the Guaranteed Minimum Income Benefit (GMIB) and/or Guaranteed Minimum Death Benefit (GMDB). (The GMIB and GMDB are explained later in this course.)

The Systematic Account Sweep program, when elected, will transfer amounts from the Investment Account to the Protected Benefit Account in specified intervals (quarterly, semi annually or annually) for a specific duration or until the Investment Account value is depleted. If the Investment Account value is less than $250 on the date of a transfer, the remaining amount will be transferred.

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Access to the Value in the Contract

Each year your client may withdraw a certain amount from his or her contract without paying a withdrawal charge. The free corridor under Retirement Cornerstone is calculated separately for the Investment Account and the Protected Benefit Account.

Investment Account: The free corridor for the Investment Account is always 10% of the

Investment Account value at the beginning of the contract year. This free corridor amount can only be withdrawn from the Investment Account.

Protected Benefit Account: If GMIB is not elected, the free corridor is 10% of the Protected

Benefit Account value at the beginning of the contract year. If GMIB is elected, the free corridor is the Annual rollup percentage applicable at the beginning of each contract year times the GMIB rollup benefit base at the beginning of the contract year (the beginning of year rollup amount). This free corridor amount can only be withdrawn from the Protected Benefit Account.

In the first contract year the benefit base amount for free corridor purposes will be determined using

all contributions received in the first 90 days after the contract is issued. (Note: This does not include transfers from the Investment Account investment options.)

If the Protected Benefit Account is first funded with a subsequent contribution or a transfer in the

middle of a contract year after the contract has been issued, there will be no free corridor for the Protected Benefit Account in the contract year in which the account is first funded. If the first funding is as a result of a transfer, the free corridor for the Investment Account will not be reduced by the transferred amount.

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Access to the Value in the Contract

Withdrawals from the Investment Account and all automated withdrawal programs can only be taken

pro rata from the investment options. Under the Investment Account, with the exception of automated

programs, the owner can specify investment options from which withdrawals must be taken.

A client can request to take a withdrawal from the Investment Account, or from the Protected Benefit

Account or from both. If a withdrawal is requested from the Protected Benefit Account with any

shortfall in the requested withdrawal to be supplemented by a withdrawal from the Investment

Account, the client must specify the Investment Account investment options from which the withdrawal

should be taken. The default withdrawal hierarchy will be from the Investment Account first, then from

the Special DCA account (as applicable) and then from the Protected Benefit Account if the value in

the Investment Account and the Special DCA account is insufficient to satisfy the withdrawal.

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Transfers

1. Transfers from the Investment Account to the Protected Benefit Account are available up to owner’s age 75, or if later, the first contract anniversary.

2. After the first and any subsequent withdrawals have been taken from the Protected Benefit

Account, transfers from the Investment Account to the Protected Benefit Account will be accepted until a contribution is made to the Investment Account. At that time, all transfers to the Protected Benefit Account, including the Systematic Account Sweep program discussed previously, will no longer be permitted.

3. Transfers out of the Protected Benefit Account into the Investment Account are not permitted.

However, if optional guaranteed benefits are dropped the owner will be able to transfer the entire Protected Benefit Account value to the Investment Account. See the prospectus for additional rules on transfers, including transfers within the Protected Benefit Account.

All transfers from the Investment Account to the Protected Benefit Account will be allocated to the

Protected Benefit Account investment options according to allocation instructions on file for the

Protected Benefit Account.

Transfers to specific Protected Benefit Account investment options are not permitted. If a client has no

allocation instructions on file for the Protected Benefit Account investment options prior to a transfer

request, then the client has to provide allocation instructions for the Protected Benefit Account

investment options before the transaction will be processed.

Restrictions on transfers:

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Charges and Expenses

Annual Contract fee:

If the account value on a contract date anniversary is less than $50,000, there is an annual fee of $30.

During the first two contract years this charge is equal to $30 or 2% of the account value. Thereafter,

the charge, if applicable is $30.

If the account value on a contract date anniversary is $50,000 or more there is no annual charge.

Please refer to page 4 of this course for Operations, Administrative, and Distribution fees.

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Optional Guaranteed Benefits –

Guaranteed Minimum

Issue Ages: GMIB is available for issue ages 20 to 80.

Benefit Base: The initial benefit base for the GMIB is the total amount contributed and/or

transferred into the Protected Benefit Account on the first day the GMIB/GMDB is funded. The

benefit base is subsequently increased by any transfers/contributions into the Protected Benefit

Account, by any resets and by any Deferral Bonus Roll up amount. The roll up is compounded

annually and ends on the contract anniversary following the owner’s 95th birthday (or contract

maturity, whichever is earlier).

Guaranteed Minimum Income Benefit (GMIB):

The GMIB is an optional rider that is issued automatically with all eligible contracts unless the client

opts out at application. It assures your clients that money kept in the annuity’s Protected Benefit

Account for at least one contract year can begin generating a guaranteed minimum income (initially in

the form of withdrawals) each and every year. The GMIB is available for an additional fee. The income

available is based on recent average interest rates of 10-year U.S Treasury notes plus 1%. The GMIB

enables clients to take advantage of periods of rising interest rate environments for building a GMIB

benefit base. Should the Protected Benefit Account value decrease to zero, or if the owner reaches

age 95 (or the contract maturity date, if earlier), the client is guaranteed to receive an annual income

for life. GMIB is issued automatically unless the client opts out at the time of application. Clients can

also choose to drop the GMIB after issue either before or after the Protected Benefit Account has been

funded. Funding the Protected Benefit Account at issue is not required.

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Guaranteed Minimum Income Benefit

Rollup Rate: There are two roll-up rates associated with the GMIB benefit base for Retirement

Cornerstone. The first is the Deferral Bonus Roll-up Rate, which is used to calculate the Deferral Bonus

Roll-up Amount. The second is the Annual Roll-up Rate, which is used to calculate the Annual

Withdrawal Amount and the Annual Roll-up Amount. The crediting rate for the Deferral Bonus and

Annual Roll-up Rates are locked for the first two contract years. For contract years three and forward, the

calculation of each of the roll-up rates is tied to an index, using the formula described below.

Deferral Bonus Roll-up Rate: The formula for the minimum Deferral Bonus Roll-up Rate for renewal

rates each quarter beginning in the third contract year will be the average of the rates for 10-year U.S.

Treasury notes on each day for which such rates are reported during the 20 calendar days ending on the

15th day of the month immediately preceding the calendar quarter to which the rollup rate applies, plus

2.00% rounded to the nearest 0.10% increment. The minimum Deferral Bonus Roll-up Rate will never be

less than 4% or more than 8%. AXA Equitable reserves the right to set a higher rate than that derived by

this formula. Deferral Bonus Roll-up Rate is declared quarterly for new business and changes annually on

a contract (if applicable). 75-day rate lock available if funded in first contract year. Beginning in the

contract year in which the first withdrawal is taken from the Protected Benefit Account, the Deferral Bonus

Roll-up Rate is no longer applicable.

Annual Roll-up Rate: The formula for the Annual Roll-up Rate is the same as stated above for the

Deferral Bonus Roll-up Rate. However, instead of the 2.00% increment, the Annual Roll-up Rate formula

uses a 1.00% increment. Annual Roll-up Rate is declared quarterly for new business and changes

annually beginning in the third contract year on a contract. Guaranteed minimum rate will never be less

than 4% or more than 8%. 75-day rate lock available if funded in first contract year.

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Rollup Benefit Base Reset: Resets of the rollup benefit base can lock in gains, which will increase annual income. The rollup benefit base of the GMIB is automatically reset to equal the Protected Benefit Account Value (if higher) each contract year. The last eligible contract anniversary for a reset will be on the contract anniversary following age 95. Resets can either be set up to automatically to occur or on a manual basis. Once a reset occurs, a new waiting period to exercise the GMIB will apply from the date of reset.

Rollup Amount: There are two roll-up amounts associated with the GMIB benefit base. The first

is the Deferral Bonus Roll-up Amount, which applies to the benefit base until the contract year in which the first withdrawal is taken from the Protected Benefit Account. The second is the Annual Roll-up Amount, which applies to the benefit base beginning in the contract year in which the first withdrawal is taken from the Protected Benefit Account.

Deferral Bonus Roll-up Amount: If a withdrawal has never been taken out of the Protected Benefit Account, the Deferral Bonus Roll-up Amount is calculated at the beginning of the contract year and credited to the benefit base at the end of the contract year if there are no withdrawals from the Protected Benefit Account during the contract year. The Deferral Bonus Roll-up Amount at the end of a contract year is equal to the GMIB benefit base as of the most recent contract anniversary (or issue date for the first contract year) times the Deferral Bonus Roll-up Rate in effect on the first day of the contract year plus any prorated Deferral Bonus Roll-up Amount for transfers or contributions to the Protected Benefit Account received during that contract year. Beginning in the contract year in which the first withdrawal (including RMD) is taken out of the Protected Benefit Account, and for all subsequent contract years, the Deferral Bonus Roll-up Amount will no longer be applicable on the contract. Instead, the Annual Roll-up Amount becomes applicable.

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Annual Roll-up Amount: The Annual Roll-up Amount is calculated at the beginning of each contract year and credited to the benefit base at the end of the contract year if a withdrawal has ever been taken out of the Protected Benefit Account. The Annual Roll-up Amount at the end of each contract year is the GMIB benefit base as of the most recent contract anniversary (or issue date for the first contract year) times the Annual Roll-up Rate in effect on the first day of the contract year (beginning of year Annual Roll-up Amount) plus any prorated Annual Roll-up Amount for transfers or contributions to the Protected Benefit Account received during that contract year. Beginning in the contract year that follows the year in which the Protected Benefit Account is first funded, the beginning of year Annual Roll-up Amount is reduced on a dollar-for-dollar basis by withdrawals of the Annual Withdrawal Amount. The rollup amount at the end of each contract year is the rollup benefit base as of the most recent contract anniversary (or issue date for the first contract year) times the rollup rate in effect on the first day of the contract year (beginning of year rollup amount). The beginning of year rollup amount is reduced on a dollar-for-dollar basis by withdrawals of the Annual Withdrawal Amount.

Annual Withdrawal Amount: The Annual Withdrawal Amount is the amount available for withdrawal each contract year – beginning in the second contract year – that ensures that there is no adverse impact on the rollup benefit base. The Annual Withdrawal Amount is calculated at the beginning of the contract year and can be withdrawn at any time during the contract year. Any amount that is not withdrawn is credited to the rollup benefit base (as part of the rollup amount) at the end of the contract year on the contract date anniversary. The Annual Withdrawal Amount is equal to the rollup benefit base as of the most recent contract anniversary, times the rollup rate in effect on the first day of the contract year. Withdrawals that are taken in addition to the Annual Withdrawal Amount could cause an adverse effect on the rollup benefit base. (See “Effect of Withdrawals”.)

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Optional Guaranteed Benefits -


Effect of Withdrawals on the GMIB Benefit Base: The GMIB benefit base is not reduced so long as no

Excess Withdrawals are made. Beginning in the contract year that follows the year in which the Protected

Benefit Account is first funded, withdrawals of the Annual Withdrawal Amount reduce the Annual Roll-up

Amount on a dollar-for-dollar basis. Any remaining Annual Roll-up Amount at the end of the contract year is

credited to the GMIB benefit base. An Excess Withdrawal is any withdrawal in the contract year in which the

Protected Benefit Account is first funded, or the portion of any withdrawal in excess of the Annual Withdrawal

Amount beginning in the contract year that follows the year in which the Protected Benefit Account is first

funded. The GMIB benefit base is reduced on a pro rata basis as of the date of any withdrawal that is

considered to be an Excess Withdrawal.

RMD withdrawals: If a client signs up for our Automatic Required Minimum Distribution (RMD) program,

RMD withdrawals from the program are never considered to be Excess Withdrawals. All RMD

withdrawals that are taken through the program in the contract year in which the Protected Benefit

Account is first funded or that are in excess of the Annual Withdrawal Amount will reduce the GMIB

benefit base on a dollar-for-dollar basis only. Such withdrawals will not cause a pro rata reduction of the

GMIB benefit base. Please note that the withdrawal hierarchy for RMDs will be taken first from the

Investment Account value, then from the Special DCA account and then from the Protected Benefit

Account value if there is insufficient account value in the Investment Account and Special DCA account

to satisfy the required distribution.

Please note that the Deferral Bonus Roll-up Amount will no longer be applicable on a contract even if

the first withdrawal from the Protected Benefit Account is an RMD withdrawal.

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GMIB Exercise

Issue Age Earliest Exercise Date

Owner Ages 20 - 44 15 Years

Owner Ages 45 - 49 Age 60

Owner Ages 50 – 80 10 Years

The latest the GMIB can be exercised is the contract anniversary following age 95. The earliest exercise date is based on issue age. See the table below for the earliest exercise dates. If the rollup benefit base is reset, the waiting period to exercise GMIB will be the original exercise date or 10 years from the last reset, whichever is later. However, the latest exercise date will never be later than the contract date anniversary following age 95, regardless of the last reset date.

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Optional Guaranteed Benefit -


GMIB rider charge: The charge for GMIB is 1.05% of the benefit base annually. The charge is deducted

from the Protected Benefit Account Value on each contract anniversary that the benefit is in effect. A pro

rata portion of the GMIB charge is assessed upon contract surrender, when GMIB is dropped, when a

death benefit is paid or the contract is annuitized on a date other than a contract anniversary.

The maximum charge for the GMIB is 2.00%. Ability to increase or decrease fees is at AXA-

Equitable’s discretion starting in the third contract year. Clients will be given at least 30 days notice

before any fee increase. If the fee is changed, the client can drop the rider within 30 days of the

announcement of the fee change.

Asset Transfer Program (ATP): The asset transfer program is required if the GMIB is elected. The

ATP uses predetermined mathematical formulas to move the account value between the AXA Ultra

Conservative Strategy investment option and the variable investment options.

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Asset Transfer Program – How it Works

All values throughout the contract year are interpolated from those shown above

ATP Program designed to allow AXA Equitable to move a certain amount of a contract’s AAV into and out of the AXA Ultra Conservative

Strategy Portfolio (10/90 ATP fund) on a monthly basis. As market conditions improve, values in the AXA Ultra Conservative Strategy

portfolio may be moved back into the investment options of your choice; however, it is possible that you will miss an equity market

increase during the period of time you are allocated to the AXA Ultra Conservative Strategy portfolio. Although this layer of protection

cannot prevent investment losses, it could lessen losses during a volatile market.

ATP applies when the Protected Benefit Account is first funded

The contract year in which the Protected Benefit Account is first funded is the first ATP Year. (first day of that contract year is time 0)

Current transfer point at the time of funding will be determined by the current month you are in for the contract year.

Subsequent contributions/transfers to the Protected Benefit Account:

The weighted average years of contributions/transfers in relation to the benefit base may cause a “set-back” in the allowable gap shown in the table above.

The ATP Year retains the current month after the “set-back” (you will be in the current month of the new ATP year)

ATP Exit Option Formula

Exit Option available to move out of “AXA Ultra Conservative Strategy Portfolio”

Benefit Base will be reduced to meet “target” ratio plus a 3% cushion

An investor may not transfer out of the AXA Ultra Conservative Strategy investment option during the first contract year. Beginning in the second contract year, an

investor may make a transfer out of the AXA Ultra Conservative Strategy investment option only once per year. 100% of the account value must be transferred out.

ATP Year 0 1 2 3 4 5 6 7 8 9 10 11…

Min Gap (all

money out of ATP

fund)

10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32%…

Max Gap (all money

not in SDCA

transferred to ATP

fund)

20% 22% 24% 26% 28% 30% 32% 34% 36% 38% 40% 42%…

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Death Benefits There are three Guaranteed Minimum Death Benefit (GMDB) options available in Retirement Cornerstone: Greater of Roll-up or Highest Anniversary Value to age 85

The benefit base for the “Greater of” GMDB is the greater of annually compounded roll-up to owner’s age

85 or Highest Anniversary Value to owner’s age 85. The Highest Anniversary Value component of the

benefit base for this GMDB increases and decreases as described below.

The roll-up benefit base component of this GMDB is increased and decreased in the same manner as

the GMIB benefit base except the Deferral Bonus Roll-up Amount (if applicable), the Annual Roll-up

Amount and any roll-up benefit base reset end on the contract anniversary following the owner’s age 85.

Also, beginning on the contract anniversary following age 85, the GMDB roll-up benefit base will be

reduced on a dollar-for-dollar basis up to the GMIB Annual Withdrawal Amount, then pro rata.

Determination of the rollup rate is based on the same GMIB rollup rate formula described previously.

The “Greater of” GMDB can be elected in place of the Return of Principal GMDB at application and is

only available if the owner does not opt out of the GMIB. It is available for issue ages 20 to 70 at a cost of

1.05% of the benefit base annually, deducted from the Protected Benefit Account Value on each contract

anniversary. A pro rata portion of the GMDB charge is assessed upon contract surrender, when the

GMDB is dropped, when a death benefit is paid or the contract is annuitized on a date other than a

contract anniversary. The maximum charge is 2.00%. Ability to increase or decrease fees is at AXA-

Equitable’s discretion starting in the third contract year. Clients will be given at least 30 days notice

before any fee increase. If the fee is changed, the client can drop the rider within 30 days of the

announcement of the fee change.

The “Greater of” GMDB is only available through the funding of the Protected Benefit Account.

Not available in New York

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Optional Guaranteed Benefits

Death Benefits

Highest Anniversary Value to age 85 GMDB

The benefit base for this GMDB is increased to equal the Protected Benefit Account Value on each contract

anniversary (if higher) up to the contract anniversary following the owner’s age 85. It is adjusted for

withdrawals on a pro rata basis. This GMDB can be elected in place of the Return of Principal GMDB at

application and is available without GMIB if the owner opts out of the GMIB at application or later drops GMIB

after the contract is issued. The Highest Anniversary Value GMDB is available for issue ages 0 to 80 at a cost

of 0.35% of the benefit base annually, deducted from the Protected Benefit Account Value on each contract

anniversary. A pro rata portion of the GMDB charge is assessed upon contract surrender, when the GMDB is

dropped, when a death benefit is paid or the contract is annuitized on a date other than a contract

anniversary.

When elected with the GMIB, withdrawals up to the Annual Withdrawal Amount or RMD withdrawals from

AXA’s Automatic RMD program will reduce the Highest Anniversary Value Death Benefit on a dollar for dollar

basis after the first contract year in which the Protected Benefit Account is funded. When not elected with the

GMIB, withdrawals will reduce the Highest Anniversary Value Death Benefit on a pro rata basis.

Return of Principal Death Benefit

This GMDB option will be issued automatically with all eligible contracts if the owner does not elect either of

the two other optional GMDBs discussed above. The Return of Principal GMDB is a return of all contributions

and transfers made to the Protected Benefit Account, adjusted for withdrawals on a pro rata basis. It is

available at no additional cost for issue ages 0 to 80. This GMDB can be available without GMIB if the owner

opts out of GMIB at application.

NOTE: The death benefit under the Investment Account is a return of the Investment Account Value as of the

date all properly completed paperwork is received in good order.

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Funding and/or Dropping Funding/Dropping Optional Guaranteed Benefits After the Issue Date: All elected optional benefits must be issued with the contract. They cannot be added after a

contract has been issued. However, under limited circumstances, elected GMDBs can be changed prior to funding the Protected Benefit Account. Note that until the Protected Benefit Account is funded, any optional benefit on a contract will be without value. If the Protected Benefit Account is not funded when the contract is issued, the owner must make a subsequent contribution to the Protected Benefit Account or make a transfer from the Investment Account to the Protected Benefit Account in order to fund all optional benefits on a contract.

Opt-out of GMIB: For owner issue ages 20 to 80, each contract will automatically be issued with the GMIB unless the owner opts out at application. If the owner opts out of the GMIB, the “Greater of” GMDB cannot be elected. However, the owner can still elect the Highest Anniversary Value GMDB. If the owner makes no election after opting out of the GMIB, the contract will be issued with the Return of Principal GMDB. The Protected Benefit Account should not be funded if the owner does not want to activate any benefits.

Funding after issue: If either GMIB and/or GMDB is elected without funding, the first contribution

or transfer to the Protected Benefit Account investment options becomes the initial benefit base for both benefits. Any transfer/contribution into the Protected Benefit Account investment options increases the benefit base(s) for the elected optional benefit(s). If a GMDB is elected with GMIB, a contribution/ transfer into the Protected Benefit Account investment options increases the benefit bases for both optional benefits simultaneously. Note that the ability to fund the Protected Benefit Account and increase any benefit will end if the owner reaches the maximum contribution/transfer age. Also, see the effect of restrictions on contributions and transfers into the Protected Benefit Account Investment Options in the prospectus.

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Funding and/or Dropping

Dropping after issue: The rules for dropping an optional benefit varies depending on whether the Protected Benefit Account has been funded. Dropping a benefit prior to funding the Protected Benefit Account is called a “pre-funding drop” and dropping a benefit after funding the Protected Benefit Account is called a “post-funding drop”.

Pre-funding drop: Prior to funding the Protected Benefit Account, the owner can drop the GMIB and (with the exception of the “Greater of” GMDB) retain the elected GMDB. The owner may also choose to drop the GMIB and switch the elected GMDB or drop both the GMIB and GMDB. The GMDB cannot be dropped without first dropping the GMIB. Note that if both the GMIB and GMDB are dropped, the GMDB will default to the Return of Principal GMDB. The Return of Principal GMDB cannot be dropped if the Protected Benefit Account has not been funded. Please see the prospectus for more details on the effect of a pre-funding drop on the optional benefits.

Post-funding drop: If the Protected Benefit Account is funded at issue, the GMIB/GMDB can be dropped if there are no CWC pending on the contract. This includes any CWCs applicable to subsequent contributions. Clients have the option to drop both the GMIB and GMDB or drop the GMIB and retain the GMDB (with the exception of the “Greater of” GMDB). If the GMDB is retained the client has the option to drop it at a later date.

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New York Variations

GMIB

Benefit

Benefit base compounds annually to age 90

GMIB

Benefit

Base Cap

There is a 325% cap on the Roll-Up Benefit Base at ages 20 to 54 based on a percentage of total

contributions

The cap is determined by the age of the owner at the time of first funding of the Protected Benefit

Account.

If the Protected Benefit Account is funded at age 55 or later, there is no cap

If the Protected Benefit Account is funded at ages 20 to 54, the cap percentage is set to 325% of the

Roll up Benefit Base and does not change for the life of the contract unless there is a reset at age 55

or later.

If there is a reset prior to age 55, the Roll-up Benefit Base amount will be capped at 325% times the

Protected Benefit Account Value at time of reset, plus 325% times all contributions and transfers made

to the Protected Benefit Account after the reset. Neither a reset nor withdrawals will lower the cap

amount.

Annual

Reset

Resets are available to age 90 for the GMIB. Resets are applicable for all ages.

Guaranteed

Minimum

Death

Benefit

Greater of Roll-up or Highest Anniversary Value to age 85 is not available

Highest Anniversary Value to age 85 GMDB is available. Annual charge = 0.35%

Return of Premium Death Benefit is available. No additional charge.

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Contact Information

For further information or questions, please contact:

AXA Distributor’s Sales Desk: 1-888-517-9900

OR

Visit our website at: www.axa-equitable.com

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Important Information

A deferred variable 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 charges,

account fees, investment management fees, administrative fees, and charges for special contract features. In

addition, annuity contracts have exclusions and limitations. Early withdrawals may be subject to surrender charges,

and, if taken prior to age 59½, a 10% federal income tax penalty may apply. Variable annuities are subject to

investment risks, including the possible loss of principal invested.

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 Protected

Benefit Account, clients will no longer be able to create a benefit base or actively increase the benefit(s).

All guarantees are based on the claims paying ability of AXA Equitable. The guarantees do not apply to the investment

portfolios of the variable annuity. AXA Equitable, AXA Advisors and AXA Distributors do not provide tax or legal advice.

Variable annuities are issued by AXA Equitable Life Insurance Company and co-distributed by affiliates AXA

Distributors, LLC, and AXA Advisors LLC all located at 1290 Avenue of the Americas, NY, NY 10104.

Your clients should carefully consider their investment objectives and the charges, risks, and expenses of

the Retirement Cornerstone, as stipulated in the prospectus, before investing. For a prospectus containing

this and other information, please call the AXA Distributors Sales Desk at 888-517-9900. Please encourage

your clients to read it carefully before investing or sending money.

This presentation is intended to be an overview and is not intended to provide complete information about

the product. Please refer to the Retirement CornerstoneSM prospectus for more information. Certain types of

contracts, features, and benefits may not be available in all jursidictions.

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Important Information

Variable investment options are subject to market risk including loss of principal. Equity risk is generally greater for the common stocks of

small- and mid-capitalization companies; foreign securities may fall due to adverse political, social and Economic developments abroad; the

focus of non-diversified portfolios on fewer issuers or one market sector (e.g., real estate sector portfolios) can make them more susceptible

to volatility and certain risks than diversified portfolios; fixed-income (bond) investments are subject to interest-rate risk and can lose

principal value when interest rates rise; high-yield debt securities have a greater risk of default than investment-grade debt securities. In

government securities portfolios, the government guarantees apply to underlying securities of the portfolio and not to the value of the

portfolio shares. Even though large cap stocks are perceived to be less risky than smaller cap companies, they still involve risks, i.e., they

will fluctuate in value and your clients can lose money. Investing in value stocks is based upon a portfolio manager’s subjective assessment

of fundamentals of the companies he or she believes are undervalued. This style of investing may increase the volatility of the portfolio and

may not produce the intended results over short or long time periods. Larger, more established companies may not be able to attain higher

growth rates of smaller companies, especially during extended periods of economic expansion. Investing in growth stocks is based upon a

portfolio manager’s subjective assessment of fundamentals of companies he or she believes offer the potential for price appreciation. This

style of investing involves risks and investors can lose money.

Derivative are financial contracts whose value is based on the value of the underlying asset, reference rate, or index; therefore, there

transactions are subject to changes in the underlying security on which such transactions are based. Derivatives also involve the risk of

mispricing or improper valuation and the risk that changes in the value of a derivative may not correlate well with the underlying asset

reference rate, or index.

Risks involved with futures contracts and options include imperfect correlation between the change in market value of the stocks help by the

portfolio and the prices of futures contracts and options, and the possible lack of a liquid secondary market for a futures or options contract,

and the resulting inability to close a futures contract or options position prior to its maturity date. Also, since each of these portfolios incest in

futures, index options , exchange-traded and over the counter options , options on futures and options on exchange-traded funds (ETFs)

based on the respective index associated with the portfolio, they are exposed to additional volatility and potential losses. The ATM

portfolios are considered non-diversified portfolios that may invest a significant portion of its assets in options and futures contracts. The use

of such a focused strategy may increase the volatility of a portfolios investment performance. Further, if the securities in which a portfolio

invests perform poorly, ATM strategy portfolio could incur greater losses than if its investments were diversified.

IU-68696 (5/12)

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