A financial services giant is working with an independent plan administrator to market a new defined benefit plan to small businesses.
Hartford Financial Services Group Inc., Hartford, will be working with Plan Administrators Inc., De Pere, Wisc., to sell the Solo db Life plan.
The plan is designed for business owners with fewer than 10 employees who need both life insurance and a retirement plan.
Solo db Life is split-funded, meaning that part of the employer’s contribution is allocated to traditional investments such as mutual funds, while the other part is used to buy whole life insurance.
Solo db Life offers business owners an alternative to 401(k) plans, Simplified employee pension individual retirement accounts, profit-sharing plans and other traditional defined-benefit plans, Hartford says.
The life insurance policy in a Solo db Life plan will be the Hartford Extraordinary Whole Life policy.
The typical owner prospect for the plan should be at least 45 years old, earn more than $75,000 per year, and have the ability to contribute more than $46,000 to the plan each year, Hartford says.
The prospect also should have an established need for life insurance and not expect to retire for at least 7 years, Hartford says.
The plan is not available in New Jersey and Pennsylvania.