NU Online News Service, July 17, 10:18 a.m. – The Hartford Financial Services Group Inc., Hartford, says it will eliminate mortality and expense charges for customers who hold some of its variable universal life insurance policies for at least 20 years.
The move affects the company’s Stag Accumulator Variable Universal Life, Stag Protector Variable Universal Life, Stag Variable Life Last Survivor II and Hartford Select Leaders Last Survivor Variable Life policies.
Hartford will eliminate M&E charges after the 20th year for customers who already own these four types of policies and for customers who buy new policies in those series, the company says.
Hartford issues the policies through its Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company units.
Annual M&E charges on Hartford VUL policies held for more than 20 years previously ranged from 0.25% and 0.60% of the VUL cash accumulation, Hartford says.
Hartford can now afford to eliminate the M&E charges because the VUL operation is bigger and more efficient than it used to be, the company says.