The Hartford Enters Growing Market for Indexed UL Insurance With Simplified Policy Tied to the S&P 500(R)
September 8, 2010 by N/A
Consumers receive death benefit protection and upside account value accumulation potential linked to performance of the S&P 500(R) Equity Index, while enjoying downside protection against market-based losses.
SIMSBURY, Conn., Sep 07, 2010 (BUSINESS WIRE) — The Hartford, which is well-known for its universal life and variable life insurance policies, is entering the $500 million market for indexed universal life insurance policies with a simple, transparent policy with credited interest rates that are tied to the S&P 500(R) equity index.
The new policy, which will be available with the company’s popular chronic illness accelerated benefit rider, will allow policyholders to choose how much of their premiums (0%-100%) to allocate between a Fixed Account and an Index Account. The Index Account will have a guaranteed annual interest rate floor of 0% and a maximum growth rate that is currently capped at 12%. The fixed account will provide a minimum 2% interest crediting rate. All guarantees within the policy are based on the claims-paying ability of the issuing company.
In addition to a death benefit, Hartford Frontier Indexed UL will provide clients with upside cash value growth potential and help protect them from market-based losses. It will also help The Hartford to meet the growing consumer demand for indexed-based products.
“Sales of indexed UL policies have tripled since 2005 because consumers want to participate in equities, but also want to be protected from the downside risks of the market,” said Steve Roche, vice president of product management in The Hartford’s Individual Life Division. “Our new policy does this in a simple, transparent way and gives consumers a balance of growth and protection that is difficult to find elsewhere.”
The Life Access Accelerated Benefit Rider(R) is being offered, at an additional cost, with the new Hartford Frontier Indexed UL. The popular rider gives policyholders access to their death benefit, should the policy insured become chronically ill and otherwise qualify under the terms of the rider. There are no restrictions on how the accelerated benefits can be used to help if the insured is diagnosed with a chronic illness. Benefit payments may be used to pay for typical chronic illness needs, including assisted living, skilled nursing care, adult daycare, intermediate care, and hospice or respite care. At the same time, they may also be used for non-medical needs, such as family care, home maintenance, or transportation. Receiving benefits under the rider will reduce the death benefit available to the policy beneficiaries. The rider may not cover all of the costs associated with the chronic illness of the insured.
Life insurance policies contain fees and expenses, including cost of insurance, administrative fees, premium loads, surrender charges and other charges or fees that will impact policy values. Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and will reduce the policy’s Account Value and Death Benefit. Assuming a policy is not a Modified Endowment Contract, loans are free from current Federal taxation and withdrawals are taxed only to the extent that they exceed the policy owner’s basis for the policy.
This policy is not a variable contract or an investment contract. Although the policy will be affected by changes in the S&P 500 Index, the policy does not participate in any stock or equity investments.
For more information on The Hartford’s new Frontier Indexed UL, visit www.hartfordinvestor.com/frontier.
About The Hartford
Celebrating 200 years of helping its customers achieve what’s ahead, The Hartford /quotes/comstock/13*!hig/quotes/nls/hig (HIG 21.95, +0.33, +1.53%) is an insurance and wealth management company. Through its unique focus on customer needs, the company serves businesses and consumers by providing the products and solutions they need to protect their assets and income from risks and manage their wealth and retirement needs. A Fortune 100 company, The Hartford is recognized widely for its service expertise and as one of the world’s most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.
Hartford Frontier Indexed UL is a flexible premium adjustable life insurance policy with an index-linked interest crediting feature. Hartford Life Insurance Company (HLI) policy form # HL-19288(10)(NY). Hartford Life and Annuity Insurance Company (HLA) Interstate Compact policy form # ICC10-1342. Hartford Life and Annuity (HLA) non-Interstate Compact policy form # LA-1342(10) and may include state abbreviations. Product features may vary by state.
“Standard & Poor’s(R)”, “S&P(R)”, “Standard & Poor’s 500(TM)” and “S&P 500(R)”are trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by Hartford Life Insurance Company. Hartford Frontier Indexed UL is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s does not make any representation regarding the advisability of investing in Hartford Frontier Indexed UL.
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2007 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
HIG – W 101349 8/10
SOURCE: The Hartford
Robert DeMallie, 860-843-5215
Timothy Benedict, 860-843-5150
Copyright Business Wire 2010