AXA Equitable Life Insurance Co. is revamping its flagship Athena Universal Life insurance policy.

The new policy is described by the company in a statement as “an innovative, hybrid development in universal life coverage, offering cost-effective, long-term guaranteed protection, cash value accumulation, a long-term care funding option and the ability to leave a charitable legacy.”

The new policy is designed to respond to the economic downturn. “In today’s tough economy, many Americans on tight budgets need an affordable and flexible way to protect their families, businesses and retirement dreams,” said Claude Methot, executive vice president and chief product officer. “Our enhanced Athena UL helps to meet these challenges by eliminating the traditional dilemma of universal life coverage — having to choose between meaningful guaranteed protection, or cash value accumulation potential. Today’s Athena UL breaks down that barrier.”

Athena UL is now designed with a built-in No-Lapse Guarantee Rider available at no additional charge, ensuring coverage will not lapse for a period of up to age 90, depending on the issue age. This rider remains intact even if the policy’s account value falls to zero and as long as a certain level of premiums is maintained and certain policy requirements are met, the company said.

“Redesigning Athena UL to include a long-term no-lapse guarantee helps keep the costs of insurance down and increases the policyholder’s potential for greater cash value accumulation — money that is not subject to equities risk and that can be used to supplement retirement needs,” Methot said. The rider is likely to appeal to business owners looking to protect and retain key employees and provide for their financial futures, he said.

The Athena UL product also offers a choice of optional riders for an additional cost, including a Long-Term Care Services Rider. Available at issue for a monthly charge to people between the ages of 20 and 70, the Long-Term Care Services Rider functions as an acceleration of the life insurance policy’s death benefit that can be used for qualified long-term care expenses. When electing the Long-Term Care Services Rider, the policyowner chooses from a certain benefit percentage of the policy’s face amount, reflecting the maximum monthly payments to be received, if he or she becomes chronically ill, the company said.

AXA Equitable said it is also helping to make it easier for individuals to continue charitable giving through the Charitable Legacy Rider, now available at no additional cost on an Athena UL policy. The Charitable Legacy Rider allows clients with a policy face amount of $1 million or greater to leave an additional one percent of the death benefit to a qualified charity or two charities of their choice, up to a maximum $100,000. The Charitable Legacy Rider adds no additional costs to the policy, does not increase the premium, and does not reduce cash values or cause a reduction in death benefit, the company said.

Athena UL is issued by AXA Equitable Life Insurance Co., based in New York.