Hartford insurer The Phoenix Cos. has unveiled a new first-to-die universal life insurance policy partly geared toward business owners.
The product, which is known as the Phoenix Joint Advantage UL (Universal Life), is designed to appeal to couples or small business partners who are concerned about cash flow or liquidity on a partner’s death.
The product covers two lives under one policy and one premium payment. It pays a death benefit on the first death, and, if clients add a rider to their policy, the surviving spouse or business partner can buy a new policy without having to provide medical evidence of insurability.
For businesses, its primary use is protecting each partner’s interest for buyout purposes when and if one partner dies. When that occurs the life insurance policy would allow the surviving partner to buyout the deceased partner for some prescribed value, said Tom Buckingham, Phoenix’s senior vice president of life and annuity product development.
“When one partner dies in a small business partnership it’s unlikely that the other partner will have enough cash to buy out the other person’s interest,” Buckingham said. “With a policy like this, the deceased partner’s family could get proceeds of the business rather than have someone step in and take over.”
Buckingham said the company has been developing the product for the last two years and saw the economic downturn as a good time to put into the market since people are looking for cost effective ways to protect their future assets.
“We heard from advisors that in today’s volatile markets, their clients want insurance products that offer an economical approach coupled with flexibility and an opportunity for steady cash accumulation,” Buckingham said. “This product delivers on both counts.”
He said the product is a “significantly” cost-effective alternative to the expense of two standard universal life policies.
For example, a male and a female, both age 45 with face amounts of $1 million coverage and a preferred plus risk class, would pay an annual premium cost of $12,103 for two individual universal life policies. The annual premium cost for one Phoenix Joint Advantage UL Policy with Survivor Purchase Option Rider is $10,193, creating annual savings of 16 percent over two individual policies.
The insurance product also allows clients to decide when and how much they want to pay. Couples or business partners can elect to have different amounts of coverage on the two people being ensured. Clients can also choose either a fixed death benefit equal to the policy’s face amount or an increasing death benefit that equals the policy’s face amount added to its cash value.
Name Change
Newington-based NorthStar Planning Group is changing its name and moving to a more spacious office in West Hartford Center to accommodate recent growth in business.
The company, which is an independent financial planning firm, will now be called NorthStar Wealth Partners and will move Sept. 1 into its new digs at 29 South Main Street in West Hartford.
The new office will double their square footage and create more room for the company as it prepares to add three new associates by 2010.
“NorthStar Wealth Partners is committed to the Hartford community and we look forward to expanding our presence and reputation as the partner of choice for those seeking independent financial planning, support, and guidance,” said Robert Laraia, a partner with the company.
Laraia said NorthStar has seven associates right now and will add three more by 2010. The company recently hired Stevin L. Moses as a wealth advisor. Stevin is a 14 year veteran of the financial services industry whose past associations include 7 years with Ameriprise.
Laraia said the company’s recent growth is related the current state of the markets, which has escalated the desire of successful individuals and business owners to retain an independent financial planning firm that is capable of delivering advanced strategies and techniques.
Brandon Marinelli, a partner at NorthStar, said the name change was meant to align the company with its national affiliate Stratos Wealth Partners, an Ohio-based, partner owned independent financial services firm. Both companies are affiliated with LPL Financial, a Boston-based independent broker/dealer supporting more than 12,000 financial advisors nationwide.
Marinelli said their new office provides them a more central location where the majority of their clients are located. He said it will also help them recruit other advisors.
“There are a lot of quality people on the street right now,” said Marinelli, who added that the firm currently has 1,200 active clients. “We are hiring people that wouldn’t be readily available in a normal market.”
Greg Bordonaro is a Hartford Business Journal staff writer.
