AXA Equitable — Cashing in Death Benefits

A couple months ago (August), I shared an article titled “Variable Annuities Look to Bail on Guarantees”  from Forbes. Well just this week that’s come to fruition, as an advisor shared with me a letter he received from AXA Equitable
The letter states something the advisor thought he’d never see. He found it almost unbelievable! In AXA Equitable’s letter, pertaining to guaranteed minimum death benefit riders and earnings enhancement benefits, it specifically states:

“AXA Equitable is offering to increase the account value of these clients in return for their agreement to cancel their GMDB, standard death benefit and, if applicable EEB.”

You read that right! It basically states ‘Please Mr./Mrs. Client, don’t hold us to our guarantees. They’re too much for us! We’d like to buy you out of our promise!’ The letter then went on to say:

“Why are we making this offer now? First, providing these features is costly in this environment.”

I know the advisor we consult and a couple people I’ve shared this with are blown away! So I’ll challenge you to think about how to use this.

  • If pricing is this difficult on current policies, how confident can policyholders be?
  • How do you use this information at in appointments when variable annuities are owned or presented?
  • Have you sold any AXA Equitable VAs in the past? Are they offering this to your clients? And
  • Through your fact-finding processes in hundreds (or thousands) of appointments, how many clients can you contact who own AXA variable annuities right now and might benefit?

If you’d like a copy of the letter, contact me. I’m happy to forward it your way.

Let this be proof that in positioning safe-money, fixed annuity solutions you’re doing an amazing service for your clients! Fixed annuities have an enormous pricing advantage in their riders compared to principal-at-risk vehicles. You’re seeing separations in client benefit grow wider all the time and confidence in FIA riders gaining momentum. Stay focused and sell with passion.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s