The Hartford (NYSE:HIG) and Plan Administrators have teamed up to create a defined benefit retirement plan designed for business owners with less than 10 employees. Solo db Life is split-funded, meaning that part of the employer's contribution is allocated to traditional investments and the other part is used to purchase life insurance.
The new plan is embedded with Hartford Extraordinary Whole Life, a new permanent life insurance product that offers guaranteed level premiums, cash values and a death benefit. On the investment side, the plan offers the ability to invest in The Hartford mutual funds. The mutual funds and the cash value portion of the life insurance provide the funding for the future defined benefit. And, since it is a qualified plan, contributions are generally tax-deductible.
"Our Solo db Life is for small business owners who need life insurance and also need to accelerate their funding towards retirement," Brian Murphy, executive vice president of The Hartford's individual life insurance division, said in a statement. "It's one more example of our intense focus on offering life insurance products that small business owners can use to help secure their future and reduce their risk."