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First-To-Die Life Policy Debuts

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A first-to-die universal life policy is targeting couples or small-business partners who have cash flow or liquidity-on-first-death concerns.

Called Phoenix Joint Advantage Universal Life, the policy is issued by life insurance subsidiaries of the Phoenix Companies Inc., Hartford.

The contract covers 2 lives under one UL policy and one premium payment and pays a death benefit on the first death.

A survivor purchase option rider allows the surviving spouse or business partner to buy a new Phoenix policy at the first death with no evidence of insurability, the company says.

Other features include:

–A rider, available at no additional cost, allowing clients to exchange the policy for 2 single life policies without evidence of insurability.

–An overloan protection rider, also at no additional cost, to help prevent policy lapse if loan debt should exceed cash value.

–Extra-costs options, including a level term rider, increasing term protection rider, alternative surrender value rider and waiver-of-surrender-charge rider.

Phoenix is positioning the policy as a “significantly cost-effective alternative” to paying for two standard UL policies while still offering cash accumulation, says Tom Buckingham, Phoenix senior vice president, life and annuity product development.