AXA Equitable Life Insurance Company says an option it has added to its variable universal life policies works to stabilize volatility through performance caps and downside buffers.
Called the Market Stabilizer Option, the feature is available on the insurer’s Incentive Life Optimizer VUL policy. It is a policy investment option with a rate of return tied to the S&P 500 Price Return index, up to a cap on growth, according to AXA Equitable, New York, a unit of AXA S.A., Paris.
The option also provides a “downside buffer” of up to 25% if there is a decline in the performance of the index, the company adds.