Representatives of AXA Advisors (“AXA Advisors”) offer variable and fixed insurance products issued by approximately 60 insurers. Such products are offered in conjunction with AXA Network, LLC, an insurance general agency affiliate of AXA Advisors. Among the products offered by AXA Advisors are those issued by its affiliates, including AXA Equitable Life Insurance Company, AXA Life and Annuity Company, MONY Life Insurance Company, MONY Life Insurance Company of America and U.S. Financial Life Insurance Company.
In connection with the sale of an insurance product, AXA Advisors and its affiliates receive a commission payment from the insurer. The amount of the commission typically varies from product to product and from insurer to insurer. Commissions for life insurance products are generally higher than for annuity products and mutual funds. Commissions for annuities are generally higher than for mutual funds. The prospectus for the product you are considering includes information about commissions, usually in the “Distribution of the Contracts” section. Please refer to the prospectus and the Statement of Additional Information (SAI) for more information.
AXA Advisors and its affiliates, in turn, pay a portion of the commissions that it receives on the sale of a product to its representative(s) who participate in the sale of the product to you. AXA Advisors and its affiliates typically also pay a portion of the commissions (and/or other compensation) to its sales managers. Amounts paid to sales managers are generally based on the commissions earned by the representatives they manage.
In addition to commissions, AXA Advisors and its representatives and sales managers may receive other compensation related to the sale of insurance products. For example, representatives and their sales managers may receive AXA stock options and/or stock appreciation rights (SARs), branch allowances and other assistance with marketing and related activities, training and education, trips, prizes, entertainment, awards and other merchandise. Currently, the amount of stock options and SARs awarded are based on the representative’s total sales of life and annuity products and the assets under management associated with the representative’s total life and annuity book of business, subject to a vesting schedule. The representative must achieve a designated total production target in order to be eligible for such an award.
AXA Advisors, its representatives and/or its sales managers may receive higher levels of cash compensation or other incentives for selling products issued by its affiliates rather than products issued by third parties. Representatives qualify for certain benefits, such as health and retirement benefits, based solely on sales of these affiliated products. Also, some representatives own a reinsurance company, which provides an opportunity for them to participate in profits and losses from the reinsurance of certain AXA Equitable life insurance products they sell.
Although the arrangements described above can create a potential conflict of interest, under applicable rules of the FINRA, Inc. our representatives may only recommend products that they reasonably believe are suitable for you based on facts that you have disclosed regarding financial situation and needs and other security holdings. If you have any questions, please ask your financial professional or contact us.