Hartford Bicentennial UL Joint Freedom II

Transcription

1 Product Name Hartford Bicentennial UL Joint Freedom II Hartford Bicentennial UL Joint Freedom II 2013 Updated Name Launch Date September 8, 2012 December 3, th quarter 2012 launch Product Type Last Survivor Flexible Premium Universal Life Last Survivor Flexible Premium Universal Life Single or Joint Life Joint Life Joint Life Replacement or Update Current product Replacement Product Description and Purpose of this Update Key focus Issuing Company Last survivor flexible premium universal life insurance product with a secondary guarantee. Death Benefit Protection with Secondary Guarantees Hartford Life and Annuity Insurance Company Hartford Life Insurance Company Contract Forms Base Policy Rider Form #s Countrywide: LA-1264(05) NY: HL-15925(05) Policy Protection Rider Form #s LA-1265(05)Rev HL-15926(05)(NY)Rev Last survivor flexible premium universal life insurance product with a secondary guarantee. Tiered Policy Protection Premium load structure no longer varies by state Update product to recognize changes to AG38 reserving requirements while minimizing impact on premiums for core funding scenarios (1-pay, all-pay, typical 1035x's) Addtion of Mimimal Funding Expense Charge to Policy Protection Account Death Benefit Protection with Secondary Guarantees Hartford Life and Annuity Insurance Company Hartford Life Insurance Company Base Policy Rider Form #s Compact: ICC Non: LA-1384(12) HL-19359(12)NY Policy Protection Rider Form #s Compact: ICC Non: LA-1385(12) NY: HL-19360(12)NY Changes are noted in this comparison Product updated to comply with 1/1/13 NAIC changes to reserving requirements. Similar to Freedom, Tiered Policy Protection Premium Load structure adds ability to adjust heavily early funded in future without impacting other funding scenarios. New Form Numbers CUSIP # A379 New CUSIP NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 1 of 6

2 Minimum face $100,000 $100,000 Face Amount Bands No face banding (except for monthly administrative No face banding (except for monthly administrative charges and shadow COI rates) charges and shadow COI rates) Issue Ages Level, Return of Account Value DBO for all risk classes Level, Return of Account Value DBO for all risk classes Risk classes Return of Premium DBO for all risk classes Preferred Plus Non-Nicotine Preferred Non-Nicotine Standard Non-Nicotine Return of Premium DBO for all risk classes Preferred Plus Non-Nicotine Preferred Non-Nicotine Standard Non-Nicotine Preferred Nicotine Standard Nicotine Joint Insurable (one life only, with Table 6 limit on the rating of the insurable life) Preferred Nicotine Standard Nicotine Joint Insurable (one life only, with Table 6 limit on the rating of the insurable life) Issue Age basis Age Nearest Birthday Age Nearest Birthday Age Charges Cease Age 120 The tax consequences of continuing a policy beyond age 100 of an insured are uncertain. Consult your tax advisor. Age 120 The tax consequences of continuing a policy beyond age 100 of an insured are uncertain. Consult your tax advisor. Death benefit options Level Level Commissions Renewal and Excess cmmn duration - 10 years Excess Cmmn Rate may change Renewal and Excess cmmn duration - 10 years Excess Cmmn Rate may change NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 2 of 6

3 No Lapse guarantees Policy Protection Rider is included on all policies, and is available on all death benefit options. This rider protects Policy, including any attached riders, from going into default as long as Policy Protection Value Policy Protection Rider is included on all policies, and is available on all death benefit options. This rider protects Policy, including any attached riders, from going into default as long as Policy Protection Value Revised Policy Protection Account charges (PPV) is positive. PPV may be brought positive at any (PPV) is positive. PPV may be brought positive at any time by paying sufficient premium. time by paying sufficient premium. per 1000 of initial face. This charge applies only to the Policy Account Value and is not assessed to Shadow Accounts per 1000 of initial face. This charge applies only to the Policy Account Value and is not assessed to Shadow Accounts All guarantees and benefits within the policy are based on the claims-paying ability of the issuing company. All guarantees and benefits within the policy are based on the claims-paying ability of the issuing company. Life Insurance Qualification Test Cost of Insurance charges Guideline Premium Test or Cash Value Accumulation (chosen at time of issue) Current COI rates will vary by gender, underwriting class, issue age, duration, face amount band. Policy Protection Rider charges updated as follows: 1) Premium Loads are repriced and additional structure is added: - a tiered premium load structure is added which charges a different premium load on cumulative premium paid in the 1st five policy years above a specified threshold. 2) Repriced per $1000 charges, and per $1000 charge basis changed as follows: Yr 1-5 based on the greater of initial face and current death benefit Yr 6+ based on current death benefit 3) Repriced COIs 4) Minimal Funding Expense Charge conditionally assessed, generally when premiums paid are below the policy's Reference Premium Limit. Guideline Premium Test or Cash Value Accumulation (chosen at time of issue) Current COI rates will vary by gender, underwriting class, issue age, duration, face amount band. No structural changes - revised rates Guaranteed Cost of Insurance Rates are based on the 2001 CSO Male or Female, Nonsmoker/Smoker table, ANB Mortality Table Guaranteed Cost of Insurance Rates are based on the 2001 CSO Male or Female, Nonsmoker/Smoker table, ANB Mortality Table NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 3 of 6

4 Premium Loads CURRENT CW OR & TX MT CURRENT CW MT OR and TX now use Year % 8.00% 8.75% Year % 8.75% Countrywide rates Year % 6.00% 6.75% Year % 6.75% Monthly Administrative charges Monthly per $1000 Charges GUARANTEED CW OR & TX MT Year % 12.00% 12.75% Year % 12.00% 12.75% Current: $10 for face amount up to $250,000 $7.50 for face amount $250,000+ Guaranteed: $10 Maximum - Per 1000 charges are non-level (decreasing) rate. - Duration 20 years. - Charge varies by initial face amount, duration and age. GUARANTEED CW MT Year % 12.75% Year % 12.75% Current: $10 for face amount up to $250,000 $7.50 for face amount $250,000+ Guaranteed: $10 Maximum - Per 1000 charges are non-level (decreasing) rate. - Duration 20 years. - Charge varies by initial face amount, duration and age. No structural changes Surrender Charge 19-year surrender charge schedule applies. 19-year surrender charge schedule applies. No structural changes Guaranteed Minimum Interest Rate 3.00% 2.00% Guaranteed Minimum Interest Rate Changed Policy Loan Interest Rate Loan Interest Rates Changed Non-Preferred Current Rate / Guaranteed Rate Yrs 1-10: 5% / 5% Yrs 11+ 4% / 4.25% Non-Preferred Current Rate / Guaranteed Rate Yrs 1-10: 4% / 4% Yrs 11+ 3% / 3.25% Preferred Current Rate / Guaranteed Rate Preferred Current Rate / Guaranteed Rate Yrs 1-10: N/A / N/A Yrs 1-10: N/A / N/A Yrs 11+ 3% / 3.25% Yrs 11+ 2% / 2.25% Policy Loan 3.00% 2.00% Loan Credited Rates Credited Rate Changed Policy Loans Minimum loan: $500 Minimum loan: $500 Maximum loan: 100% of Cash Surrender Value. Maximum loan: 100% of Cash Surrender Value. Withdrawals Minimum withdrawal amount: $500 Minimum withdrawal amount: $500 Maximum withdrawal amount: Cash Surrender Value Maximum withdrawal amount: Cash Surrender Value minus $1000 minus $1000 NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 4 of 6

5 Maturity Extension Policy automatically continues beyond age 120 of the younger insured, death benefit becomes to Level option and charges cease. Policy automatically continues beyond age 120 of the younger insured, death benefit becomes to Level option and charges cease. Options & Riders LS Exchange Option Rider (inherent) LA-1266(05)/ HL (05)) Estate Protection Rider ILA-1023 / HL Owner Designated Settlement Option Rider LA- 1337(09) / HL-19284(09) LifeAccess Accelerated Benefit Rider LA-1298(07) / HL-19224(07) LS Exchange Option Rider (inherent) LA-1266(05)/ HL (05)) Estate Protection Rider ILA-1023 / HL Owner Designated Settlement Option Rider LA- 1337(09) / HL-19284(09) LifeAccess Accelerated Benefit Rider LA-1298(07) / HL-19224(07) Additional details are available in the product prospectus and in the rider forms. Additional details are available in the product prospectus and in the rider forms. Riders listed may not Riders listed may not Exchange Option Rider This rider provides the option of exchanging the Last This rider provides the option of exchanging the Last Survivor Policy to which it is attached, for an individual Survivor Policy to which it is attached, for an individual life insurance policy on the life of each of the Insureds life insurance policy on the life of each of the Insureds under the Last Survivor Policy under the Last Survivor Policy Estate Protection Rider Issue ages: Issue ages: This is a four-year term rider which provides a term This is a four-year term rider which provides a term insurance benefit for the Last Surviving Insured's insurance benefit for the Last Surviving Insured's death. The Estate Protection Rider is used for death. The Estate Protection Rider is used for situations where death occurs within four years of a situations where death occurs within four years of a trust being established and the policy is included in the trust being established and the policy is included in the estate estate NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 5 of 6

6 LifeAccess Accelerated Benefit Rider This rider provides for the acceleration of up to 100% of the death benefit and any term insurance amount available under the policy when the Insured has been certified as being chronically ill by a Licensed Health This rider provides for the acceleration of up to 100% of the death benefit and any term insurance amount available under the policy when the Insured has been certified as being chronically ill by a Licensed Health Care Practitioner. The rider does not require expenses Care Practitioner. The rider does not require expenses to be incurred in order for benefits to be paid. Death benefits, account value, cash value and loan value, if any, will be reduced for accelerated death benefits paid out under this rider. to be incurred in order for benefits to be paid. Death benefits, account value, cash value and loan value, if any, will be reduced for accelerated death benefits paid out under this rider. Owner Designated Settlement Option Rider Electable rider, no charge. Rider allows policyholder to designate a settlement option for the beneficiary(ies). If exercised, beneficiary cannot change the option elected by the policyholder. Electable rider, no charge. Rider allows policyholder to designate a settlement option for the beneficiary(ies). If exercised, beneficiary cannot change the option elected by the policyholder. Policy Protection Rider See description under No Lapse Guarantees section. Inherent Rider, included in all policies. per 1000 of initial face. See description under No Lapse Guarantees section. Inherent Rider, included in all policies. per 1000 of initial face. All policy guarantees and benefits are based on the claims-paying ability of the issuing company. This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. "The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company (New York) and Hartford Life and Annuity Insurance Company (outside new York), Simsbury, CT. The mailing address for both issuers is P.O. Box 2999, Hartford, CT Hartford Bicentennial UL Joint Freedom II 2013 is a Last Survivor Flexible Premium Universal Life insurance policy. When issued outside of New York by Hartford Life and Annuity Insurance Company, the policy form number is LA-1384(12)., Interstate Compact policy form number is ICC When issued in New York by Hartford Life Insurance Company, the policy form number is HL-19359(12)NY. In certain states, the policy form number may be followed by a state abbreviation. Not all product features are available in all states. NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC OR USED IN ORAL OR WRITTEN FORM AS SALES LITERATURE. Page 6 of 6