Variable Universal Life Insurance

Variable Universal Life (VUL) provides lifelong death benefit protection, flexible premium payments and the ability to build cash value. You choose how your premiums are invested. Choices generally include a wide variety of professionally managed sub-account options that are subject to market-based risk.

VUL policies have the potential for greater cash value growth than other types of life insurance. They can also lose cash value. If you’re comfortable with the risks of market ups and downs, a VUL policy may be an option to consider.

Key Benefits of VUL Insurance

• Permanent death benefit coverage, provided premium requirements are met
• Flexible investment options
• Cash value that fluctuates based on the performance of the investment options you choose
• Flexibility to increase or decrease your planned premiums within certain limits
• Ability to access your cash value through tax-advantaged loans and withdrawals
• Optional features (riders) to customize your coverage

How Does VUL Insurance Work?

1. You pay premiums.
2. Premium charges, taxes and any rider fees are deducted from your premium.
3. The net premium is allocated to the investment options you’ve selected and/or a fixed account. Your account value will vary, depending on the performance of those investment options.
4. Monthly insurance charges are deducted from the cash value. Unpaid loans plus interest and withdrawals will also reduce the death benefit and cash value.
   As long as cash value is available, the policy remains in force.
5. The death benefit – minus any outstanding policy loans and interest due – is paid to your beneficiaries at death.

 VUL Insurance Choices from The Hartford

• Hartford Leaders VUL Liberty 2012
• Hartford Leaders VUL Legacy
• Hartford Leaders VUL Joint Legacy II

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. 

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.

Guarantees and benefits within the policy are based on the claims-paying ability of the issuing insurance company. Broker/dealers, insurance agencies and their affiliates who sell the policy make no representations or guarantees regarding such ability.

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.

This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.

"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.

Hartford Leaders VUL Liberty 2012 is a flexible premium variable universal life insurance policy. Interstate compact policy form #ICC12-1375. HLI policy form # HL-19348(12)(NY). HLA policy form # LA-1375(12) and may include state abbreviations. Features may vary by state.

Hartford Leaders VUL Legacy is a flexible premium variable universal life insurance policy. HLI policy form # HL-15894(03)(NY). HLA policy form # LA-1238(03) and may include state abbreviations. Features may vary by state.

Hartford Leaders VUL Joint Legacy II is a last survivor flexible premium variable universal life insurance policy. HLI policy form # HL-19217(06)(NY). HLA policy form # LA-1287(06) and may include state abbreviations. Features may vary by state.