Variable universal life insurance policies contain fees and expenses, including cost of insurance, administrative fees and premium loads, surrender charges and other charges or fees that will impact policy values. The underlying funds also have fund operating expenses. The investment return and principal value will fluctuate so that when redeemed, may be worth more or less than their original cost.
Variable Universal Life (VUL) insurance is permanent life insurance that provides death benefit protection with the ability to build cash value. You decide how to invest your net premium among the investment options offered for the policy, or you can choose a professionally-developed asset allocation option based on your investment goals, risk tolerance and time horizon.
Where does VUL get its name?
The policy is “variable” because its cash value will vary according to the performance of the investment options you choose.“Universal” refers to the policy's flexible premiums. You can set your premium amount and payment schedule, provided they are sufficient to support the death benefit and sustain the policy.
Who may have a need for VUL?
Most VUL customers are looking for death benefit protection for their families and either:- have concerns about the future of their estate or business, or
- are looking for a means to supplement retirement income.
What are the benefits of VUL?
A VUL policy can help you prepare for the future of your family, your business and your legacy.Protection for you and your family
- Obtain death benefit protection
- Replace your income in the event of your death
- Plan ahead for a loved one with special needs
- Supplement your retirement income
Protection for your business
- Plan for continuation of your business in the event of your death
Estate planning
- Help protect savings and the total value of your estate for future generations
- Create liquid assets to help pay for estate taxes
- Transfer wealth on a tax-efficient basis
- Leave a legacy to charity
How does a VUL policy work?
Your premium payments, after fees, are allocated to the investment options you choose. The performance of your investment options impacts your policy's account value and can help support the death benefit. You can also access the policy account value through loans and withdrawals to fund present and future needs. And, upon your death (second insured for survivorship product), your beneficiaries will receive a death benefit.Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy's Account Value and Death Benefit. Depending upon the performance of a VUL policy's investment choices, the Account Value may be worth more or less than the original amount invested in the policy. Assuming a policy is not a Modified Endowment Contract (MEC), withdrawals are taxed only to the extent that they exceed the policyowner’s cost basis in the policy and usually loans are free from current Federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to Federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions.
You should carefully consider the investment objectives, risks, and charges and expenses of any variable universal life insurance policy and its underlying funds before investing. This and other information can be found in the prospectus for the variable universal life insurance policy, the prospectuses for the underlying funds and appropriate product information, which can be obtained from your financial professional or by calling (800) 231-5453. Please read them carefully before you invest or send money.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company (HLI) (New York) and Hartford Life and Annuity Insurance Company (HLA) (Outside New York), Simsbury, CT. The mailing address for both issuers is PO Box 2999, Hartford, CT 06104-2999.
Variable life insurance products discussed in this material are distributed by Hartford Equity Sales Company, Inc. (HESCO), a broker/dealer affiliate of The Hartford.
