New Executive Benefits Program from Phoenix Helps Small, Mid-Sized Firms Address Retirement, Benefits Issues.

HARTFORD, Conn. -- The Phoenix Companies, Inc. (NYSE: PNX) has introduced a new executive benefits program that helps owners of small and mid-sized companies address the unique challenges of funding retirement benefits for themselves and their key executives.

Phoenix's turnkey program uses universal or variable universal life insurance policies with customized investment options to give small and mid-sized firms and non-profit organizations a range of retirement and benefits funding choices. Phoenix has partnered with a third party administrator to offer dedicated sales support and convenient plan administration.

"An exceptional employee is a valuable asset for a company, and a competitive benefits package is crucial to helping a company recruit, reward and retain talented executives," said Edward W. Cassidy, senior vice president, Life Distribution and Sales at Phoenix.

"Unfortunately, restrictive regulations and escalating administrative costs have made it difficult for small and mid-sized businesses to use qualified plans for executive benefits. That's why more businesses use life insurance to develop customized benefits programs."

The Phoenix executive benefits program focuses on one of the most compelling issues business owners face - the retirement funding gap.

"Owners and key executives at small and mid-sized businesses are increasingly concerned about their retirement security because their companies don't offer pension plans. In addition, since they are considered 'highly compensated individuals,' there are limits on their contributions to Individual Retirement Accounts, 401(k)s, or other qualified retirement plans," Cassidy noted. "These restrictions can create a significant gap between the amount of money they need to maintain a comfortable retirement lifestyle and their expected retirement income."

Although plan designs will vary based on the needs of the company and the executives, typically, a business will purchase a Phoenix universal or variable universal life insurance policy to fund a supplemental retirement income plan for key employees. Plan contributions are usually tax-free to the business, and the employee receives a valuable death benefit throughout his or her working years. Upon retirement, the employee can keep the policy in force or can use the policy's cash value for income.

A nonqualified plan provides more flexibility for an employer, Cassidy noted. For example, an employer can choose a unique vesting schedule for its contributions, and can decide whether to match the executive's contributions. By using universal or variable universal life insurance policies, executive benefits plans can be funded as a firm's cash flow allows, in either a lump-sum contribution; monthly, quarterly or annual installments; or periodically.

In addition to providing supplemental retirement funding, Phoenix's universal or variable universal life insurance policies can be used to fund a bonus plan or deferred compensation plan. The Phoenix program is also available as a nonqualified 457(f) plan for non-profit organizations.

Phoenix's Executive Benefits Consultants will work with a company's insurance agent or financial advisor to determine the company's goals, design a customized program, and implement and service the plan. To help advisors customize plans and maximize tax strategies for high-net-worth clients, the consultants are supported by Phoenix's Advanced Planning Group, which comprises attorneys trained to address the sophisticated estate, business continuation, and tax-planning scenarios of business owners and high-net-worth clients. Companies looking for more information on executive benefits can contact Bob Nienaber, national sales manager for Executive Benefits, at: [e-mail].

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.

With roots dating to 1851, The Phoenix Companies, Inc. (NYSE:PNX) helps individuals and institutions solve their often highly complex personal financial and business planning needs through its broad array of life insurance, annuities and investments. The company's products and services reflect deep insights into the wants and needs of consumers and financial professionals gleaned from research, including its Phoenix Wealth Survey, conducted annually since 1999. Phoenix has been recognized for its people-friendly programs by Working Mother magazine, the National Association of Female Executives, and The Princeton Review. In 2005, Phoenix had annual revenues of $2.6 billion and total assets of $27.7 billion. For more information, visit www.phoenixwm.com.

Phoenix Executive VUL (V614) is issued by Phoenix Life Insurance Company (East Greenbush, NY), PHL Variable Insurance Company (PHLVIC) (Hartford, CT), and Phoenix Life and Annuity Company (PLAC) (Hartford, CT). PHLVIC is not authorized to conduct business in NY and ME. PLAC is not authorized to conduct business in CA, GA, MA, ME, MN, NH, and NY and not authorized to conduct variable universal life insurance business in ID and LA. The insurers referenced above are separate entities and each is responsible only for its own financial condition and contractual obligations. Variable products distributed by Phoenix Equity Planning Corporation, One American Row, Hartford, CT 06102