NU Online News Service, June 18, 5:13 p.m. – The Hartford Financial Services Group Inc., Hartford, has introduced a new variable universal life insurance policy designed specifically for clients of Morgan Stanley Investment Management, New York.
The new policy, the Hartford Select Leaders Last Survivor Variable Universal Life policy, will be issued by Hartford’s Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company units.
The policy will insure two lives and pay a death benefit after both insureds have died.
Last survivor policies are popular in the estate-planning market, because married couples can buy the policies for less than they would pay for two separate life policies, Hartford says.
Morgan Stanley, a unit of Morgan Stanley Dean Witter & Company, New York, will sell the new policy. Morgan Stanley will also manage 10 of the investment funds bundled into the policy.
Clients who buy the policy for estate-planning purposes can cancel their policies without paying a surrender charge if the federal government fails to reinstate the estate tax in 2011.
Current law calls for the estate tax to expire completely in 2010, then return at 2001 levels in 2011 if Congress fails to approve permanent elimination of the estate tax.