How does the principal guarantee work with Escrow Shield Plus™?

The return of the principal amount (net of any valid claims) and any accrued interest is guaranteed by AXA Equitable. In that, should there be any loss on the assets of the separate account, AXA Equitable is obligated to make the investors whole on invested capital and any accrued interest.  This guarantee is secured by the assets in the separate account as well as backed by AXA Equitable’s general account. Guarantees are based on claims paying ability of AXA Equitable.

Invested assets are held in a separate account that is segregated from AXA Equitable’s other assets. The separate account is insulated from any claims that other creditors and policyholders might have against AXA Equitable’s general account. This is in contrast to bank deposits in which the depositor is an unsecured creditor of the bank, subject to the limited protection of FDIC insurance.

There is no risk of floating Net Asset Value (NAV) reducing the size of principal.  New rules take effect October 2016 (escrow accounts established in 2015 and thereafter can be affected) which could require that institutional prime money market funds will no longer be carried at a stable net asset value and therefore could have a risk of loss of principal.  

See Escrow Shield Plus overview and prospectus for more information.

Contact us at to learn more.

Posted in: Services: Escrow Shield Plus