497
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d284507d497.txt
MONY AMERICA VARIABLE ACCOUNT L
AXA Equitable Life Insurance Company
MONY Life Insurance Company of America
SUPPLEMENT DATED MAY 18, 2012 TO THE CURRENT PROSPECTUS FOR
INCENTIVE LIFE LEGACY(R) II
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This Supplement updates certain information in the most recent prospectus and
statement of additional information you received and in any supplements to that
prospectus and statement of additional information (collectively, the
"Prospectus"). You should read this Supplement in conjunction with the
Prospectus and retain it for future reference. Unless otherwise indicated, all
other information included in the Prospectus remains unchanged and the
Prospectus is hereby incorporated by reference. The terms and section headings
we use in this Supplement have the same meaning as in the Prospectus. We will
send you another copy of any prospectus or supplement without charge upon
request. Please contact the customer service group referenced in the Prospectus.
The purpose of this Supplement is to describe the new version of the Long-Term
Care Services/SM/ Rider that is available on or about May 21, 2012, subject to
approval in your state. If available, the Long-Term Care Services/SM/ Rider
described in this Supplement replaces the prior version of the rider that is
described in your current Prospectus under "More information about policy
features and benefits." This Supplement makes references to the corresponding
sections of your current prospectus. Please note the following changes
described below.
In states where approved and subject to eligibility requirements, an optional
rider may be added to your policy at issue that provides an acceleration of all
or part of the policy's death benefit in the form of monthly payments if the
insured becomes chronically ill and is receiving qualified long-term care
services in accordance with a plan of care. This is our Long-Term Care
Services/SM/ Rider. The monthly rate charged for this rider varies based on the
individual characteristics of the insured, the benefit percentage you select
and whether you select the rider with or without the optional Nonforfeiture
Benefit. You can terminate this rider after your first policy year, subject to
any continuation of coverage under the optional Nonforfeiture Benefit, if
elected.
This Supplement is organized so that we can first describe the new version of
the Long-Term Care Services/SM/ Rider. The information in the Item 1 of this
Supplement replaces, in its entirety, the description of the previous version
of the rider in your current Prospectus. Following the description of the new
version of the rider, we then refer you to other sections of the Prospectus and
describe whether the information in those sections, as it relates to the
Long-Term Care Services/SM/ Rider, has changed.
1. LONG-TERM CARE SERVICES/SM/ RIDER
The information for the Long-Term Care Services/SM/ Rider below replaces, in
its entirety, the information in your Prospectus under "More information
about policy features and benefits".
The rider provides for the acceleration of all or part of the policy death
benefit as a payment of a portion of the policy's death benefit each month
as a result of the insured person being a chronically ill individual who is
receiving qualified long-term care services in accordance with a plan of
care./(1)/ Benefits accelerated under this rider will be treated as a lien
against the policy death benefit unless benefits are being paid under the
optional Nonforfeiture Benefit. While this rider is in force and before any
continuation of coverage under the optional Nonforfeiture Benefit, if
elected, policy face amount increases and death benefit option changes from
Option A to Option B are not permitted.
An individual qualifies as "chronically ill" if they have been certified by
a licensed health care practitioner as being unable to perform (without
substantial assistance from another person) at least two activities of daily
living for a period of at least 90 days due to a loss of functional
capacity; or requiring substantial supervision to protect such individual
from threats to health and safety due to cognitive impairment.
Benefits are payable once we receive: 1) a written certification from a U.S.
licensed health care practitioner that the insured person is a chronically
ill individual and is receiving qualified long-term care services in
accordance with a plan of care; 2) proof that the "elimination period," as
discussed below, has been satisfied; and 3) written notice of claim and
proof of loss in a form satisfactory to us. In order to continue monthly
benefit payments, we require recertification by a U.S. licensed health care
practitioner every twelve months from the date of the initial or subsequent
certification that the insured person is still a chronically ill individual
receiving qualified long-term care services in accordance with a plan of
care. Otherwise, unless earlier terminated due to a change in status of the
insured or payout of the maximum total benefit amount, benefit payments will
terminate at the end of the twelve month period. This rider may not cover
all of the costs associated with long-term care services during the insured
person's period of coverage.
The monthly rate charged for this rider varies based on the insured person's
sex, issue age, class of risk and tobacco user status, as well as the
benefit percentage selected and whether you selected the rider with or
without the optional Nonforfeiture Benefit. See "Risk/benefit summary:
Charges and expenses you will pay" above for more information on the charges
we deduct for this rider.
If the net policy value is insufficient to cover the total monthly
deductions for the base policy and any riders while benefits under this
rider are being paid, we will not lapse the policy. While monthly benefits
under the Long-Term Care Services/SM/ Rider are being paid, we will waive
the monthly charge for the Long-Term Care Services/SM/ Rider.
We will pay up to the maximum total benefit for qualified long-term care
services for the insured person for the duration of a period of coverage.
During any period of coverage, the maximum total benefit is determined as of
the first day of that period of coverage.
(1)For a more complete description of the terms used in this section and
conditions of this rider please consult your rider policy form
EVM 02 (5/12) 149989 (5/12)
IL Legacy II #284507
For policies with death benefit Option A, the maximum total benefit is equal
to the current long-term care specified amount. For policies with death
benefit Option A, the initial long term care specified amount is equal to
the face amount of the base policy at issue multiplied by the acceleration
percentage. You can select an acceleration percentage between 20% and 100%.
For policies with death benefit Option B, the maximum total benefit is equal
to the current long-term care specified amount, plus the policy account
value. For policies with death benefit Option B, the initial long term care
specified amount is equal to the face amount of the base policy multiplied
by 100%. You do not select an acceleration percentage.
The initial long-term care specified amount may change due to subsequent
policy transactions and will be reduced at the end of a period of coverage
to reflect benefits paid during that period of coverage. Any request for a
decrease in the policy face amount may reduce the current long-term care
specified amount to an amount equal to the lesser of: (a) the new policy
face amount multiplied by the acceleration percentage selected, or (b) the
long-term care specified amount immediately prior to the face amount
decrease. If you selected death benefit Option A, any partial withdrawal
will reduce the current long-term care specified amount by the amount of the
withdrawal, but not to less than the policy account value minus the amount
of the withdrawal. If you selected death benefit Option B, the current
long-term care specified amount will not be reduced.
The maximum monthly benefit is the maximum amount we or an affiliated
company will pay in a month for qualified long-term care services for the
insured person. Affiliates include AXA Equitable Life Insurance Company, AXA
Equitable Life and Annuity Company, MONY Life Insurance Company, MONY Life
Insurance Company of America, and U.S. Financial Life Insurance Company. The
maximum monthly benefit payment amount that you can purchase from the issuer
and its affiliates is limited to $50,000 per month, per insured person. At
issue, the maximum monthly benefit is equal to the long-term care specified
amount multiplied by the benefit percentage selected. After that, the
maximum monthly benefit is equal to the maximum total benefit as of the
first day of the first period of coverage, or on the date coverage under the
Nonforfeiture Benefit begins, if earlier, multiplied by the benefit
percentage selected.
Each month, the monthly benefit payment (a portion of which will be applied
to repay any outstanding policy loan) for qualified long-term care services
for the insured person is the lesser of:
1. the maximum monthly benefit (or lesser amount as requested, however, this
may not be less than $500); or
2. the monthly equivalent of 200% (100% in the State of New York) of the per
day limit allowed by the Health Insurance Portability and Accountability
Act or "HIPAA." (We reserve the right to increase this percentage.) To
find out the current per day limit allowed by HIPAA, go to www.irs.gov.
We may also include this information in your policy's annual report.
We will pay a proportionate amount of the monthly benefit payment for
services rendered for less than a full month.
When benefits are paid under this rider, we establish an accumulated benefit
lien. This accumulated benefit lien amount will equal the cumulative amount
of rider benefits paid (including any loan repayments) during a period of
coverage, accumulated at 0% interest. We deduct the accumulated benefit lien
amount from the base policy death benefit if the insured person dies before
the end of a period of coverage. We also reduce the cash surrender value, as
described below.
. ELIMINATION PERIOD. The Long-Term Care Services/SM/ Rider has an
elimination period that is the required period of time while the rider is in
force that must elapse before any benefit is available to the insured person
under this rider. The elimination period is 90 days, beginning on the first
day of any qualified long-term care services that are provided to the
insured person. Generally, benefits under this rider will not be paid until
the elimination period is satisfied, and benefits will not be retroactively
paid for the elimination period. The elimination period can be satisfied by
any combination of days of a long-term care facility stay or days of home
health care. The days do not have to be continuous, but the elimination
period must be satisfied within a consecutive period of 24 months starting
with the month in which such services are first provided. If the elimination
period is not satisfied within this time period, you must submit a new claim
for benefits under this rider. This means that a new elimination period of
90 days must be satisfied within a new 24 month period. The elimination
period must be satisfied only once while this rider is in effect.
. PERIOD OF COVERAGE. The period of coverage is the period of time during
which the insured person receives services that are covered under the
Long-Term Care Services/SM/ Rider and for which benefits are payable. This
begins on the first day covered services are received after the end of the
elimination period. A period of coverage will end on the earliest of the
following dates:
1. the date that we receive the notice of release which must be sent to us
when the insured person is no longer receiving qualified long-term care
services;
2. the date we determine you are no longer eligible to receive benefits in
accordance with the terms of this rider;
3. the date when you request that we terminate benefit payments under this
rider;
4. the date the accumulated benefit lien amount equals the maximum total
benefit (or if your coverage is continued as a Nonforfeiture benefit, the
date the maximum total Nonforfeiture benefit has been paid out);
5. the date that you surrender the policy (except to the extent of any
Nonforfeiture Benefit you may have under the rider);
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6. the date we make a payment under the living benefits rider (for terminal
illness) if it occurs before coverage is continued as a Nonforfeiture
Benefit; or
7. the date of death of the insured person.
During a period of coverage:
1. Partial withdrawals, face amount decreases and premium payments are not
permitted.
2. The policy death benefit will not be less than the maximum total benefit.
3. Each monthly benefit payment will increase the accumulated benefit lien
amount by the amount of the payment--including any loan repayment. The
accumulated benefit lien amount will be deducted from the policy death
benefit in determining the insurance benefit we pay.
4. For the purposes of determining the cash surrender value of this policy,
the policy face amount and the unloaned policy account value will be
reduced by a percentage. For policies with death benefit Option A, the
percentage will be equal to the accumulated benefit lien amount divided
by the policy face amount. For policies with death benefit Option B, the
percentage will be equal to the accumulated benefit lien amount divided
by the policy face amount plus the unloaned policy account value. For all
policies, the percentage will not be more than 100% and the unloaned
policy account value will not be reduced by more than the accumulated
benefit lien amount. Any applicable surrender charge will be reduced on a
pro rata basis for the reduction in the policy face amount.
5. If there is an outstanding policy loan (and accrued loan interest) at the
time we make a benefit payment, an amount equal to a percentage of the
loan and accrued loan interest will be deducted from the monthly benefit
payment and used as a loan repayment and will reduce the amount otherwise
payable to you. This percentage will equal the monthly benefit payment
divided by the portion of the maximum total benefit that we have not
accelerated to date.
6. The loan extension and paid up death benefit guarantee endorsements will
no longer be applicable at any time once benefits are paid under this
rider if it is before coverage is continued as a Nonforfeiture Benefit.
7. Transfers of any unloaned policy account value allocated to the
guaranteed interest option or to the variable investment options are
permitted. We do, however, reserve the right to restrict the variable
investment options available to you during a period of coverage. If we
exercise this right, we will notify you of such restrictions in advance.
After a period of coverage ends:
1. The base policy face amount of the policy and the unloaned policy account
value will each be reduced by a percentage. For policies with death
benefit Option A, the percentage will be equal to the accumulated benefit
lien amount divided by the base policy face amount. For policies with
death benefit Option B, the percentage will be equal to the accumulated
benefit lien amount divided by the base policy face amount plus the
unloaned policy account value. For all policies, the percentage will not
be more than 100% and the unloaned policy account value will not be
reduced by more than the accumulated benefit lien amount.
2. Any applicable surrender charges will be reduced on a pro rata basis for
the reduction in the policy face amount.
3. The long-term care specified amount will be reduced by a percentage equal
to the accumulated benefit lien amount, divided by the maximum total
benefit. If after this calculation, the long-term care specified amount
would be greater than the base policy face amount, the long-term care
specified amount will be further reduced to the policy face amount.
4. For any subsequent period of coverage, the maximum monthly benefit will
be equal to the maximum monthly benefit during the initial period of
coverage.
5. The premium fund values that are used by us to determine whether a
guarantee against policy lapse or a guarantee of death benefit protection
is in effect will also be reduced pro rata to the reduction in the base
policy face amount.
6. Any remaining balance for an outstanding loan and accrued loan interest
will not be reduced.
7. The accumulated benefit lien amount is reset to zero.
The reduction in your policy account value will reduce your unloaned value
in the guaranteed interest option and your values in the variable investment
options in accordance with your monthly deduction allocation percentages
then in effect. If we cannot make the reduction in this way, we will make
the reduction based on the proportion that your unloaned values in the
guaranteed interest option and your values in the variable investment
options bear to the total unloaned value in your policy account.
After the period of coverage has ended, we will provide you with notice of
the adjusted values.
If the entire maximum total benefit has been paid out, the period of
coverage will end and this rider will terminate. If the net policy account
value is insufficient to cover the monthly deductions, the policy will
terminate subject to the grace period provision.
. RIDER TERMINATION. This rider will terminate, and no further benefits will
be payable (except, where applicable, as may be provided under the
"Extension of Benefits" and the "Nonforfeiture Benefit" provisions of this
rider), on the earliest of the following:
1. at any time after the first policy year, on the next monthly anniversary
on or following the date we receive your written request to terminate
this rider;
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2. upon termination or surrender of the policy;
3. the date of the insured person's death;
4. the date when the accumulated benefit lien amount equals the maximum
total benefit amount;
5. the effective date of the election of the paid up death benefit guarantee;
6. the date you request payment under a living benefits rider due to
terminal illness of the insured person (whether or not monthly benefit
payments are being made as of such date) if it occurs before coverage is
continued as a Nonforfeiture Benefit;
7. the date the policy goes on loan extension if it occurs before coverage
is continued as a Nonforfeiture Benefit; or
8. on the date that a new insured person is substituted for the original
insured person under the terms of any substitution of insured rider if it
occurs before coverage is continued as a Nonforfeiture Benefit.
If this rider does not terminate, it will remain in force as long as the
policy remains in force. This rider may be restored after termination if
certain qualifications for restoration of rider benefits are met.
. EXTENSION OF BENEFITS. If your policy lapses, terminating this rider,
while the insured person is confined in a long-term care facility but before
any rider benefits have been paid for a current period of coverage, benefits
for that confinement may be payable provided that the confinement began
while this rider was in force and the confinement continues without
interruption after rider termination. Benefits may continue until the
earliest of the following dates: (a) the date the insured person is
discharged from such confinement (in this case, the maximum total benefit
will be reduced by rider benefits that have been paid out); (b) the date the
maximum total benefit has been paid; or (c) the date of death of the insured
person. If benefits are payable under this provision, there will be no death
benefit payable to the beneficiary or beneficiaries named in the base policy.
NONFORFEITURE BENEFIT
For a higher monthly charge, you can elect the Long-Term Care Services/SM/
Rider with the Nonforfeiture Benefit. The Nonforfeiture Benefit may continue
coverage under the rider in a reduced benefit amount in situations where
(a) the Long-Term Care Services/SM/ Rider would otherwise terminate; (b) you
have not already received benefits (including any loan repayments) that
equal or exceed the total charges deducted for the rider; and (c) your
policy and Long-Term Care Services/SM/ Rider were inforce for at least three
policy years.
While the Nonforfeiture Benefit is in effect, all of the provisions of the
Long-Term Care Services/SM/ Rider remain applicable to you. The maximum
total Nonforfeiture Benefit will be the greater of:
(a)One month's maximum monthly benefit and
(b)The sum of all charges deducted for the Long-Term Care Services/SM/ Rider
(with the Nonforfeiture Benefit). This amount excludes any charges that
may have previously been waived while rider benefits were being paid.
The maximum total Nonforfeiture Benefit will be reduced (but not below zero)
by all monthly benefit payments paid under the rider, including any loan
repayments and any payments made under the "Extension of Benefits" and
Nonforfeiture Benefit provisions. Also, the maximum total Nonforfeiture
benefit will not exceed the maximum total benefit under the rider as of the
date coverage under the Nonforfeiture Benefit begins.
Coverage under the Nonforfeiture Benefit begins on the date the Long-Term
Care Services/SM/ Rider would otherwise terminate for one of the following
reasons (unless benefits are being continued under the "Extension of
Benefits" provision of the rider):
(1)We receive your written request to terminate the Long-Term Care
Services/SM/ Rider;
(2)You surrender your policy;
(3)Your policy terminates without value at the end of a grace period; or
(4)You elect a Paid Up death benefit guarantee.
If benefits are being continued under the "Extension of Benefits" provision
of the rider and the maximum total benefit has not been paid out, coverage
under the Nonforfeiture Benefit begins on the date the insured is discharged
from a long-term care facility.
Once in effect, the Nonforfeiture benefit will continue long-term care
coverage under a paid-up status until the earliest of (a) the death of the
insured, and (b) the date the maximum total Nonforfeiture benefit has been
paid out and reduced to zero during a period of coverage. If coverage is
continued under the Nonforfeiture benefit, you will receive additional
information regarding the benefit, including the maximum total Nonforfeiture
benefit amount.
For tax information concerning the Long-Term Care Services/SM/ Rider, see
"Tax information" later in this Supplement.
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2. RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
The fee information for the Long-Term Care Services/SM/ Rider below
replaces, in its entirety, the fee information in your Prospectus.
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PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
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AMOUNT
CHARGE WHEN CHARGE IS DEDUCTED DEDUCTED
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LONG-TERM CARE SERVICES/SM/ RIDER/(2)/ Monthly Charge
per
$1,000 of
the
amount
for which
we are at
risk:/(3)/
With the
optional
Nonforfeiture
Benefit:
Highest:
$2.94
Lowest:
$0.25
Representative:
$0.53/(1)/
Without
the
optional
Nonforfeiture
Benefit:
Highest:
$2.67
Lowest:
$0.22
Representative:
$0.49/(1)/
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(1)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue in the preferred elite non-tobacco user risk
class. This charge varies based on the individual characteristics of the
insured and the benefit percentage you choose and may not be
representative of the charge that you will pay. Your financial
professional can provide you with more information about these charges as
they relate to the insured's particular characteristics.
(2)Not applicable after the insured person reaches age 121.
(3)Our amount "at risk" for this rider depends on the death benefit option
selected under the policy. See "More information about policy features
and benefits -- Long-Term Care Services/SM/ Rider" earlier in this
Supplement.
3. RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
THE MINIMUM AMOUNT OF PREMIUMS YOU MUST PAY
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if your "net policy account value" is not enough
to pay your policy's monthly charges when due unless you are receiving
monthly benefit payments under the Long-Term Care Services/SM/ Rider.
YOU CAN ELECT A "PAID UP" DEATH BENEFIT GUARANTEE
The information replaces, in its entirety, the information regarding the
Long-Term Care Services/SM/ Rider that was included in this section of your
Prospectus.
Our paid up death benefit guarantee is not available if you received monthly
benefit payments under the Long-Term Care Services/SM/ Rider prior to
continuing coverage under any Nonforfeiture Benefit. Also, election of a
paid up death benefit guarantee will terminate any Long-Term Care
Services/SM/ Rider subject to any Nonforfeiture Benefit, if elected.
OTHER ADJUSTMENTS TO DEATH BENEFIT
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loans and unpaid loan interest, as well as any amount of monthly
charges under the policy that remain unpaid because the insured person died
during a grace period. Under the Long-Term Care Services/SM/ Rider, any
monthly benefit payments will be treated as a lien against the death benefit
and reduce your death benefit. Please see "Section 1: Long-Term Care
Services/SM/ Rider" earlier in this Supplement.
CHANGE OF DEATH BENEFIT OPTION
The information below replaces, in its entirety, the information regarding
the Long-Term Care Services/SM/ Rider that was included in this section of
your Prospectus.
You may not request a change of the death benefit option from Option A to
Option B under the policy while the Long-Term Care Services/SM/ Rider is in
effect. You may request a change from Option B to Option A.
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YOU CAN INCREASE OR DECREASE YOUR INSURANCE COVERAGE
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
We can refuse or limit any requested increase or decrease. We will not
approve any increase while the Long-Term Care Services/SM/ Rider is in
effect unless coverage has been continued under a Nonforfeiture Benefit.
Also, we will not accept a request for a face amount decrease while you are
receiving monthly benefit payments under the Long-Term Care Services/SM/
Rider.
ACCESSING YOUR MONEY
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
The cash surrender value available for loans is reduced as described earlier
in this Supplement. We will charge interest on the amount of the loan. See
"Borrowing from your policy" in your prospectus for more information.
Partial withdrawals are not permitted if you are receiving monthly benefit
payments under the Long-Term Care Services/SM/ Rider.
4. ACCESSING YOUR MONEY
BORROWING FROM YOUR POLICY
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
The amount you can borrow will be reduced for any monthly payments you have
received under the Long-Term Care Services/SM/ Rider.
PAYING OFF YOUR LOAN. Any payment received while you are receiving monthly
payments under the Long-Term Care Services/SM/ Rider, will be applied as a
loan repayment (or refunded if it is in excess of the loan amount and
outstanding interest).
If you are to receive monthly benefit payments under the Long-Term Care
Services/SM/ Rider, a percentage of the loan and accrued loan interest to
that date will be deducted from the monthly benefit payment as a loan
repayment. This will reduce the monthly payment otherwise payable to you
under the rider.
LOAN EXTENSION (FOR GUIDELINE PREMIUM TEST POLICIES ONLY)
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
Loan Extension is a feature that can protect against lapse of your policy
due to an outstanding policy loan in certain circumstances. However, Loan
Extension is not available if you have received a payment under the
Long-Term Care Services/SM/ Rider before coverage is continued under any
Nonforfeiture Benefit.
When a policy goes on loan extension all additional benefit riders and
endorsements will terminate, including the Long-Term Care Services/SM/ Rider
before coverage is continued under any Nonforfeiture Benefit.
MAKING WITHDRAWALS FROM YOUR POLICY
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
You may make a partial withdrawal of your net cash surrender value at any
time after the first year of your policy and before the policy anniversary
nearest to the insured's attained age 121, provided you are not receiving
monthly benefit payments under the Long-Term Care Services/SM/ Rider. If you
elected the Long-Term Care Services/SM/ Rider, a partial withdrawal may
reduce the current long term care specified amount as described earlier in
this Supplement.
SURRENDERING YOUR POLICY FOR ITS NET CASH SURRENDER VALUE
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
You can surrender (give us back) your policy for its "net cash surrender
value" at any time. The net cash surrender value equals your cash surrender
value, minus any outstanding loan and unpaid loan interest. The cash
surrender value is reduced as described earlier in this Supplement.
YOUR OPTION TO RECEIVE A TERMINAL ILLNESS LIVING BENEFIT
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
If you receive a living benefit on account of terminal illness, the
Long-Term Care Services/SM/ Rider for chronic illness benefits, if inforce
and before continuation of coverage under any Nonforfeiture Benefit, will
terminate and no further benefits will be payable under the Long-Term Care
Services/SM/ Rider. Long-Term Care Services/SM/ Rider charges will also stop.
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5. TAX INFORMATION
The tax information for the Long-Term Care Services/SM/ Rider below
replaces, in its entirety, the tax information in this section of
your Prospectus.
TAX TREATMENT OF LIVING BENEFITS RIDER OR LONG-TERM CARE SERVICES/SM/ RIDER
UNDER A POLICY WITH THE APPLICABLE RIDER
LIVING BENEFITS RIDER. Amounts received under an insurance policy on the
life of an individual who is terminally ill, as defined by the tax law, are
generally excludable from gross income as an accelerated death benefit. We
believe that the benefits provided under our living benefits rider meet the
tax law's definition of terminally ill under section 101(g) of the Code and
can qualify for this income tax exclusion. If the owner and the insured
person are not the same, the exclusion for accelerated death benefits for
terminal illness or a chronic illness does not apply if the owner (taxpayer)
has an insurable interest with respect to the life of the insured person by
reason of the insured person being an officer, employee or director of the
taxpayer or by reason of the insured person being financially interested in
any trade or business carried on by the taxpayer.
LONG-TERM CARE SERVICES/SM/ RIDER. Benefits received under the Long-Term
Care Services/SM/ Rider are intended to be treated, for Federal income tax
purposes, as accelerated death benefits under the Code on the life of a
chronically ill insured person receiving qualified long-term care services
within the meaning of section 7702B of the Code. The benefits are intended
to qualify for exclusion from income subject to the limitations of the Code
with respect to a particular insured person. Receipt of these benefits may
be taxable and may reduce your investment in the policy. Generally income
exclusion for all payments from all sources with respect to an insured
person will be limited to the higher of the HIPAA per day limit or actual
costs incurred by the taxpayer on behalf of the insured person.
The Long-Term Care Services/SM/ Rider is intended to be a qualified
long-term care insurance contract under section 7702B(b) of the Code.
Charges for the Long-Term Care Services/SM/ Rider are generally not
considered deductible for income tax purposes. Assuming the rider qualifies
as intended, charges will reduce your investment in the policy for income
tax purposes (but not below zero) but will not be taxable.
Any adjustments made to your policy death benefit, face amount and other
values as a result of Long-Term Care Services/SM/ Rider benefits paid will
also generally cause us to make adjustments with respect to your policy
under federal income tax rules for testing premiums paid, your tax basis in
your policy, your overall premium limits and the seven-pay period and
seven-pay limit for testing modified endowment contract status.
It is not clear whether the exception for accelerated death benefits on
account of terminal illness for owners whose insurable interests arise from
business-type policies applies to benefits under a qualified long-term care
insurance policy. If the owner and insured person are not the same, other
tax considerations may also arise in connection with a transfer of benefits
received to the insured person, for example, gift taxes in personal
settings, compensation income in the employment context and inclusion of
life insurance policy proceeds for estate tax purposes in certain trust
owned situations. Under certain conditions, a gift tax exclusion may be
available for certain amounts paid on behalf of a donee to the provider of
medical care.
MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
GUARANTEE PREMIUM TEST FOR NO LAPSE GUARANTEE
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
GUARANTEE PREMIUMS. The amounts of the monthly guarantee premiums for the no
lapse guarantee are set forth in your policy. The amounts of the monthly
guarantee premiums for any elected extended no lapse guarantee rider are set
forth in your policy if your death benefit option is Option A. The guarantee
premiums are actuarially determined at policy issuance and depend on the age
and other insurance risk characteristics of the insured person, as well as
the amount of the coverage and additional features you select. The guarantee
premiums may change if, for example, the face amount of the policy or the
long-term care specified amount changes, or a rider is eliminated, or if
there is a change in the insured person's risk characteristics. We will send
you a new policy page showing any change in your guarantee premiums. Any
change will be prospective only, and no change will extend a no lapse
guarantee period or the extended no lapse guarantee period beyond its
original number of years.
PAID UP DEATH BENEFIT GUARANTEE
The information below replaces, in its entirety, the information regarding
the Long-Term Care Services/SM/ Rider that was included in this section of
your Prospectus.
If you elect the paid up death benefit guarantee, the Long-Term Care
Services/SM/ Rider will automatically terminate. If we make payment under
the Long-Term Care Services/SM/ Rider, the paid up death benefit guarantee
will terminate.
Our paid up death benefit guarantee is not available if you received monthly
benefit payments under the Long-Term Care Services/SM/ Rider and before
continuation of coverage under any Nonforfeiture Benefit.
7
6. MORE INFORMATION ABOUT CERTAIN POLICY CHARGES
The information below regarding the charge for the Long-Term Care
Services/SM/ Rider replaces, in its entirety, the information in this
section of your Prospectus.
. LONG-TERM CARE SERVICES/SM/ RIDER. If you choose this rider without the
Nonforfeiture Benefit, on a guaranteed basis, we may deduct between $0.22
and $2.67 per $1,000 of the amount for which we are at risk under the rider
from your policy account value each month. If you choose this rider with the
Nonforfeiture Benefit, on a guaranteed basis, we may deduct between $0.25
and $2.94 per $1,000 of the amount for which we are at risk under the rider.
We will deduct this charge until the insured reaches age 121 while the rider
is in effect, but not when rider benefits are being paid. The net amount at
risk under the rider depends on the death benefit option selected under the
policy. For policies with death benefit Option A, the net amount at risk for
the rider is the lesser of (a) the current policy face amount, minus the
policy account value (but not less than zero); and (b) the current long-term
care specified amount. For policies with death benefit Option B, the net
amount at risk for the rider is the current long-term care specified amount.
If you continue coverage under the Nonforfeiture Benefit, the charge for the
rider will no longer apply.
7. MORE INFORMATION ABOUT PROCEDURES THAT APPLY TO YOUR POLICY
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
The reference to the Long-Term Care Services/SM/ Rider in this section of
your Prospectus remains unchanged. For your convenience, the information
regarding the rider is restated below.
After the policy's second year, we will permit you to request that a new
insured person replace the existing one subject to our rules then in effect.
This requires that you provide us with adequate evidence that the proposed
new insured person meets our requirements for insurance. Other requirements
are outlined in your policy.
Upon making this change, the monthly insurance charges we deduct will be
based on the new insured person's insurance risk characteristics. In
addition, any no lapse guarantee and Long-Term Care Services/SM/ Rider will
terminate before continuation of coverage under any Nonforfeiture Benefit.
Copyright 2012 AXA Equitable Life Insurance Company and MONY Life Insurance
Company of America.
All rights reserved. Incentive Life Legacy is
a registered trademarks of AXA Equitable Life Insurance Company.
AXA EQUITABLE LIFE INSURANCE COMPANY
1290 AVENUE OF THE AMERICAS
NEW YORK, NY 10104
212-554-1234
#284507