AXA Product Overview: Incentive Life Optimizer III

On Monday, February 22, 2016, AXA released a new version of their accumulation-oriented variable universal life product, now called Incentive Life Optimizer III. With this release, AXA mostly solidified its already competitive standing with clients 55 and under while falling slightly backward with clients over 55. This distinction is most evident at an 8% illustrated rate, where Incentive Life Optimizer III sports its strongest competitive positioning.

AXA was already comfortably nestled in the top quartile of distributions for most clients under 60, showing particular strength with clients’ ages 50-55. With the update, Incentive Life Optimizer III made marginal improvements to its accumulation patterns almost universally, and this was mostly reflected by slight improvements in income as well. However, clients 60+ see slight decreases in distributions when illustrating at 8%, and many clients 45+ experience these decreases when illustrating at 6%. As a result, Incentive Life Optimizer III’s strengths tend to be more pronounced when illustrated at 8% despite a higher management fee (.098%) than when illustrated at 6% (0.96%).

AXA also initiates a persistency bonus at year 9. For ages 20-55, this bonus increases as clients approach retirement, boosting Incentive Life Optimizer III’s competitive positioning for cash accumulation at age 65.

Targets improved for clients 30 and under and decreased for some clients ages 45-55. In an unusual twist, Optimizer’s targets are strongest where the product is strongest.

Rates were updated on the LifeTrends website on Monday, February 17th.