Phoenix Launches Two Fixed Indexed Annuity Products

The Phoenix Companies, Inc. (NYSE: PNX) today introduced Phoenix Index Select^SM and Phoenix Index Select Bonus^SM. Both products are modified guaranteed, single-premium fixed indexed annuities featuring a simple structure, a 10-year surrender charge schedule, three optional guaranteed minimum withdrawal benefit riders and guaranteed principal protection. Each guaranteed minimum withdrawal benefit rider offers a unique feature that allows the product to be tailored to each consumer’s particular income requirement. In addition, Phoenix Index Select Bonus provides an upfront 5 percent premium bonus.

The Phoenix Index Select product series is designed to meet heightened interest in today’s market for growth potential without exposure to downside market risk, as well as demand for guaranteed income. It is one of the ways Phoenix is strengthening its business with products and services that address needs in market segments with the most growth potential for the company.

"Right now, there is increased demand from both distributors and consumers for products that take advantage of the market’s earning potential without exposing core retirement funds to the risk of loss. At the same time, many people are concerned that a fixed rate of return alone may not keep pace with inflation. The challenge is finding a product that will maximize income potential without significant downside risk, and our new indexed annuity products respond to that need exceptionally well,” said Tom Buckingham, senior vice president, Product Development, Life and Annuity.

"A well-funded annuity can be one of the most reliable income sources in retirement. Our goal in designing the Phoenix Index Select product series was to offer a structure that is simpler and more straight-forward than other indexed annuities in the market. That way, consumers can better understand the benefits and features and feel comfortable that they have made an informed choice,” Buckingham said.

As a single-premium annuity, the premium is paid in its entirety when the annuity is issued, with a minimum of $15,000 and a maximum of $1 million.

With Phoenix Index Select Bonus, a premium bonus equal to 5 percent of the single premium is applied upfront to the account value. The bonus is distributed to each account in the same proportion as the single premium dollars and earns interest and/or index credits in the same way as the premium. Products offering a bonus may offer lower credited interest and/or indexed account rates than products not offering a bonus. Over time, and under certain circumstances, the amount of the bonus may be more than offset by the lower rates.

If the consumer makes an excess withdrawal or surrenders the contract during the surrender charge period, the withdrawal or surrender will be subject to a market value adjustment and for Phoenix Index Select Bonus, a portion of the bonus will be recaptured.

Three optional guaranteed minimum withdrawal benefit riders are offered for consumers who want to buy additional income protection.

• "Income 25” provides an upfront bonus to the benefit base equal to 25 percent of the accumulation value at issue.
• "Income Plus” provides a guaranteed minimum 8 percent compound increase to the benefit base for the first 10 years.
• "Income Max” provides high withdrawal percentages maximizing the guaranteed lifetime income amount available.

The Phoenix Index Select product series offers five point-to-point indexed accounts: one-year S&P 500, one-year DJIA (Dow Jones Industrial Average), one-year DJ (Dow Jones), EURO STOXX 50, one-year Balanced Allocation, and five-year S&P 500. The Balanced Allocation includes the three indices and appeals to consumers who want a more diversified investment strategy. In addition, consumers can also select a fixed account that credits interest daily at a specified rate.

The single premium, any premium bonus and interest credited to the contract are allocated to a Separate Account. Under state law, the Separate Account assets are segregated from the General Account and consequently the Separate Account assets may not be used to pay liabilities arising out of other business Phoenix may conduct and are insulated from any creditors of the Phoenix Companies. Guarantees are based on the claims-paying ability of the issuing insurance company, PHL Variable Insurance Company or Phoenix Life Insurance Company.

BACKGROUND ON INDEXED ANNUITIES

An indexed annuity allows consumers to benefit from growth in the market without the risk of direct investment in the market. It guarantees that principal will be protected because the account value increases as a result of positive index performance but never loses value due to market downturns. When the index shows a positive performance over the particular indexed account’s segment duration (either one-year or five-year), "index credits” that are based on that performance are added to the account value. Unlike direct investments, the account does not lose any value when the markets go down because the index credit can never be negative – keeping the account value intact.

To learn more about Phoenix Index Select Bonus, Phoenix Index Select and other annuity products available from Phoenix, agents and financial advisors can contact their Phoenix wholesaler, the Life and Annuity Sales Desk at 800-417-4769, or visit www.phoenixwm.com.

ABOUT PHOENIX

Dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) provides financial solutions using life insurance and annuities, with particular expertise in the high-net-worth and affluent market. In 2008, Phoenix had annual revenues of $2.0 billion and total assets of $25.8 billion.

Phoenix is a leader in the life insurance industry, with a distinguished record of industry firsts in product design and underwriting. The company's underwriting capabilities can accommodate a range of customers and risk situations and address clients' estate, business and retirement planning strategies. Phoenix also offers a complete suite of annuity products with a full spectrum of optional guarantees, and with expert technical analysis of complex annuity contracts to help customers own the right products to fit their unique needs.