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Life Health > Life Insurance

Hartford Policy Reflects Estate Tax Confusion

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A New England insurer is trying to help life insurance purchasers cope with uncertainty in Washington.

The Hartford Financial Services Group, Inc. has introduced the Hartford Variable Universal Life Last Survivor life insurance policy, a product that comes with features designed for customers who have concerns about whether Congress will reduce or eliminate the federal estate tax.

The policy, which insures 2 lives and pays a death benefit upon the second death, can provide $100,000 to $1 million in death benefits and comes with a 10-year no-lapse guarantee for holders of most ages.

The policy also comes with a built-in estate tax repeal rider and a last survivor exchange option rider.

The estate tax repeal rider will waive surrender charges for policies surrendered in January 2011 if there is no federal estate tax in 2011.

The last survivor exchange option rider will allow the survivorship policy to be exchanged for 2 individual policies in the event of divorce, reduction of the maximum federal estate tax bracket by at least 50%, or repeal of the unlimited federal estate tax marital deduction.

Another rider, an estate protection rider, will pay an additional death benefit if both insureds die within four years of purchasing the policy.

Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company, the Hartford subsidiaries that are issuing the policy, are responsible for backing the policy guarantees.


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