The Hartford, a provider of universal life and variable life insurance policies, is entering the $500m market for indexed universal life insurance policies with a new transparent policy with credited interest rates that are tied to S&P 500 equity index.

The company said that the new policy will allow policyholders to choose how much of their premiums (0%-100%) to allocate between a fixed account and an index account.

The index account will have a guaranteed annual interest rate floor of 0% and a maximum growth rate that is currently capped at 12%, while fixed account will provide a minimum 2% interest crediting rate.

In addition, the Frontier indexed UL will provide clients with upside cash value growth potential and help protect them from market-based losses.

In addition to Frontier indexed UL, Life Access Accelerated Benefit rider is also being offered which provides policyholders access to their death benefit, should policy insured become chronically ill and otherwise qualify under terms of the rider.