Phoenix Enhances and Expands Living Benefit Riders

The Phoenix Companies, Inc. (NYSE: PNX) today announced enhancements to its top-selling Phoenix Flexible Withdrawal Protector^SM guaranteed minimum withdrawal benefit (GMWB) rider and the launch of a new combination benefit rider, Phoenix Retirement Protector^SM, which offers a GMWB, a guaranteed minimum accumulation benefit (GMAB), and an optional guaranteed minimum death benefit (GMDB). Both riders are available for purchase with most Phoenix variable annuities. Guarantees are based on the claims-paying ability of the issuing insurance company.

"At Phoenix, we recognize that many people are facing unprecedented challenges to retirement planning,” said Tom Buckingham, senior vice president, Product Development, Life and Annuity. "Our new living benefit riders provide flexible solutions that give customers access to guaranteed income when they need it. And, they provide additional benefits to address real-life needs, such as increased income during nursing home stays, protection of principal and contract gains from market volatility and enhanced beneficiary protection.”

According to the 2008 Phoenix Wealth Survey conducted earlier this year, 40 percent of individuals surveyed said they were concerned about sustaining their income in retirement and 44 percent said they worried about the impact of unforeseen health care costs.

"The rising cost of health care and other essentials has people concerned about outliving their assets or experiencing a decline in their standard of living,” said Buckingham. "A Phoenix variable annuity combined with an optional living benefit rider is designed to help protect retirement assets against longevity and inflation risks by providing guaranteed income and income growth potential.”

Phoenix Flexible Withdrawal Protector, an optional GMWB rider for individuals or spouses, will replace the existing GMWB rider and includes several noteworthy enhancements, including:

• The guaranteed income amount available is 5%, 6% or 7% of the benefit base and is based on the age at first withdrawal. The longer withdrawals are delayed, the greater the guaranteed income amount.
• The benefit base, used to determine the guaranteed income amount, is increased by the greater of automatic step-ups or annual roll-ups until the first withdrawal. Automatic step-ups lock in market gains while annual roll-ups provide 6.5% compound interest. The longer withdrawals are delayed, the greater the income growth potential.
• Also new, the benefit base is guaranteed to be at least double the amount of first year premiums paid when withdrawals are postponed until the end of the roll-up period or the youngest covered person’s 70^th birthday.
• The initial roll-up period is still 10 years, however, the new rider offers the opportunity to reset the roll-up period to 10 additional years from the date of each automatic step-up if no withdrawals have been made. A longer roll-up period provides greater income growth potential.
• The new optional Extended Care Enhancement feature doubles the income amount available during nursing home confinement of 180 days or longer. This provides a dependable income stream and helps protect quality of life.

Phoenix Retirement Protector, a combination benefit rider for individuals or spouses, offers up to three benefits and provides the greatest retirement planning flexibility of all Phoenix living benefit riders. The guaranteed minimum withdrawal benefit (GMWB) guarantees lifetime income withdrawals or non-lifetime income withdrawals for a specified period of time. The guaranteed minimum accumulation benefit (GMAB) guarantees principal protection against market volatility and offers the opportunity to increase the protected amount as the contract value increases in value. The optional guaranteed minimum death benefit (GMDB) provides enhanced death benefit protection for heirs.

Key features of this new rider include:

• A GMWB that offers a choice of lifetime withdrawals for individuals or spouses of 5%, 6% or 7%, based on the age at first withdrawal – or non-lifetime 7% withdrawals for a specified period.
• The GMWB Benefit Base is calculated similar to the Phoenix Flexible Withdrawal Protector and features automatic step-ups, annual 6.5% compound roll-ups, a 10-year roll-up period reset if no withdrawals are taken, and the opportunity to increase the benefit base to double the amount of first-year premiums if withdrawals are delayed sufficiently.
• The GMAB protects principal and guarantees the return of first-year premiums paid after a 10-year waiting period. It also offers the opportunity to increase or step up the protected amount to include subsequent premiums and increases to contract value. At each GMAB step-up, a new 10-year waiting period begins.
• The optional GMDB provides a greater death benefit in a down market than the death benefit offered under the base variable annuity contract, provided the covered person dies before age 85 and the contract value has not been reduced to zero. The GMDB Benefit Base is calculated similar to the GMWB Benefit Base and may increase as a result of automatic step-ups and 6.5% compound roll-ups. In addition, the GMDB Benefit Base is reduced dollar-for-dollar for withdrawals within the non-lifetime withdrawal amount.

Key Considerations

Only one rider may be elected per contract. Optional riders are at an additional cost.

Both riders require investment in an asset allocation option. Thirteen asset allocation options from leading money managers are available, including a new aggressive growth option, the AllianceBernstein VPS Wealth Appreciation Strategy, which offers 100% equity exposure and is available with most Phoenix Variable Annuities.

The annual fee of each rider is based on the asset allocation option selected. In the event of multiple asset allocation options in a year, the highest fee will apply.

Most variable annuity contracts permit annual, surrender charge-free withdrawals up to a certain percentage (e.g., 10%) without the purchase of a GMWB rider.

For Phoenix Flexible Withdrawal Protector, the fee ranges from 0.50% to 1.35% for the single life version, and 0.70% to 1.70% for the spousal life version, of the greater of the benefit base or contract value. If the optional Extended Care Enhancement feature is elected, a 0.20% fee is added to the annual fee. The rider fee could be increased as a result of any automatic step-up. Investors will be notified at least 30 days in advance and may decline the step-up to avoid the higher fee.

For Phoenix Retirement Protector, the fee ranges from 0.85% to 1.70% for the single life version, and 1.05% to 2.05% for the spousal life version, of the greater of the GMWB benefit base, GMAB benefit base or contract value. If the GMDB is elected, a 0.30% fee is added to the annual fee. In addition, the rider fee may increase as a result of any step-up. Investors will be notified at least 30 days prior any step-up date and may decline the step-up to avoid paying the higher fee.

Fees may be subject to change.

About Variable Annuities

Variable annuities are long-term investment vehicles intended to help investors accumulate tax-deferred earnings over time and provide guaranteed retirement income. Contract value will be influenced by mortality, administrative and investment advisory fees, as well as charges for contract surrender, riders and other elected options.

Variable annuities involve investment risk, including possible loss of principal. Phoenix variable annuities offer investors more than 50 diverse subaccounts in which to invest. As with any investment, subaccounts are subject to market risk and value fluctuations. Performance is not guaranteed and investors may receive more or less than the original investment amount.

Guarantees are based upon the claims-paying ability of the issuing company.

Withdrawals are subject to ordinary income tax, and if taken before age 59 ½ , a 10% federal income tax penalty may apply. Early withdrawals are also subject to surrender charges, and reduce the death benefit and cash surrender value.

About The Phoenix Companies

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 2000. Phoenix has been recognized for its people-friendly programs by Working Mother magazine, the National Association of Female Executives and The Princeton Review. In 2007, Phoenix had annual revenues of $2.6 billion and total assets of $30.2 billion. For more information, visit www.phoenixwm.com.

About the Phoenix Wealth Survey

The Phoenix Wealth Survey monitors the demographics, attitudes and financial behavior of the high net worth in the United States. The 2008 Survey was conducted by Harris Interactive between February and March 2008 and comprised online interviews with more than 1,900 randomly selected high-net-worth individuals (net worth of $1 million or more, minus any debt and the value of their primary home).

IRS Circular 230 Disclosure: Pursuant to requirements related to practice before the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any transaction tax-related matter addressed herein. Individuals should seek independent tax advice based on their own circumstances.

GMWB riders provide protection from market downturns. If the investor's current contract value is greater than their guaranteed benefit once withdrawals begin, they will pay for a guarantee that is not exercised.

Investors should carefully consider the investment objectives, risks, charges and expenses of a Phoenix variable annuity before investing. For a contract prospectus and the underlying fund prospectuses containing this and other information, contact your financial representative, call Phoenix at 1-800-417-4769 or visit phoenixwm.com. Please read the prospectuses carefully before investing.

Details regarding living benefit riders or death benefits may vary in a particular state based on the terms of that state’s approval. Please read the contract prospectus for complete information.

Variable annuities issued by Phoenix Life Insurance Company (East Greenbush, NY) and PHL Variable Insurance Company (PHLVIC) (Hartford, CT). PHLVIC is not authorized to conduct business in NY and ME. The insurers referenced above are separate entities and each is responsible only for its own financial condition and contractual obligations. Securities distributed by Phoenix Equity Planning Corporation, Hartford, CT. Members of The Phoenix Companies, Inc.