With the April 16 deadline only weeks away... The Road to Greater Financial Security Can Start With A Drive Through Your Federal Tax Return

The Internal Revenue Service estimates that it processes more than 135 million 1040 individual income tax returns annually. That cycle will begin anew on April 16 when federal tax returns are due from most Americans. A virtual archive of a person’s financial data from the prior year, each one of those returns holds clues – some obvious and some obscure – about how taxpayers can improve the financial security of their family, business or both. "An individual’s 1040 Form is one of the most comprehensive pieces of financial information available in one place, although few understand its power,” said Patrick Smith, vice president of estate and business planning for The Hartford Financial Services Group, Inc. (NYSE: HIG). "The Hartford recommends that taxpayers work with their financial professionals and use this information to learn more about their financial strengths and vulnerabilities, and their life insurance needs for income protection, business continuation or wealth transfer.” The 1040 Form includes data about each taxpayer’s income from salaries, certain investments and businesses, how much they paid in taxes, contributions to certain retirement savings, and deductible expenses. Smith said the information can be used as a roadmap for millions of taxpayers to help determine whether or not they are protecting their assets adequately. Specific sections of the income tax form are useful for different financial security and life insurance issues, Smith said. He provided tips to deciphering several of the lines of the 1040 and putting its information to best use to increase an individual’s financial protection: 1040 Form, Lines 1-5 – The "Filing Status” section of the form provides a snapshot of your family and raises several fundamental protection questions that a person needs to answer. Using the 1040 as a protection roadmap -- Different filing statuses such as "Single,” "Married Filing Jointly,” "Head of a Household” or "Qualifying Widow(er)” all point to potential life insurance needs. If you file jointly, you need to make sure you have enough life insurance to replace lost income for your family to live comfortably if you or your spouse happens to die before having the chance to fully fund an education or retirement plan. 1040 Form, Lines 7-22 – Taken together, these lines provide the bottom line on your annual income, the benchmark on which you base your annual spending and savings plan. Using the 1040 as a protection roadmap: This benchmark is what can guide decisions on how much life insurance is needed. Many people with families need life insurance equal to between seven and 10 times their annual income – or more – depending upon their education needs and financial goals. 1040 Form, Line 13 – The "Capital Gains and Losses” section provides the scoreboard for how some of your investments performed. Using the 1040 as a protection roadmap: In contrast to the profits from the sale of equities, for example, cash value increases within a life insurance policy or annuity compound on a tax-deferred basis. Transfers of funds between different subaccounts are tax-free. The cash value increases within an annuity are taxable upon withdrawal. Taxable distributions and certain deemed distributions are subject to ordinary income tax, and if taken prior to age 59-1/2, subject to a 10 percent federal income tax penalty. Life insurance, on the other hand, currently allows federal income-tax-free access to the basis in the policy and federal income-tax-free access to cash value increases if they are taken through policy loans.* Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. If you are concerned about losses, you might consider purchasing an annuity with a minimum guaranteed withdrawal benefit to help ensure that you enjoy a guaranteed retirement income. All policy guarantees are based upon the claims-paying ability of the issuing insurance company. *Assumes the policy is not a Modified Endowment Contract (MEC). Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10 percent additional tax, with certain exceptions. 1040 Form, Lines 12 and 17 – If you report income on these lines it means that you own some type of business or are the beneficiary of a trust. Using the 1040 as a protection roadmap: Life insurance can help accomplish a number of financial objectives in this area, including passing a business interest to heirs or associates, or accumulating enough assets to supplement retirement income. If you are the beneficiary of a trust, life insurance can provide significant tax advantages for estate planning or wealth transfer. 1040 Form, Line 40 – Itemized deductions such as mortgage interest, state and local income taxes, and charitable contributions may be deductible. Using the 1040 as a protection roadmap: Clients who wish to enhance their charitable giving might consider donating a life insurance policy and taking a tax deduction in recognition of their generosity. 1040 Form, Line 63 – This is the bottom line on how much tax you must pay. Do you think you’re paying too much? Using the 1040 as a protection roadmap: One of the best ways to limit your tax liability is to remember that assets you hold within a life insurance policy or annuity accumulate tax-deferred. This is one way you can use your life insurance policy while you’re alive. The Hartford’s Patrick Smith summarized his views about unlocking the power of the Form 1040. "The 1040 is a highly effective planning tool for life insurance and other financial needs,” Smith said. "Each taxpayer’s circumstances are unique, and The Hartford recommends that you meet at least annually with your financial professional to review your financial picture. Make sure you bring your 1040 Form.” The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2006 revenues of $26.5 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is www.thehartford.com. HIG-L The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company (New York) and Hartford Life and Annuity Insurance Company (Outside New York). This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice. Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include, without limitation, those discussed in our Quarterly Reports on Form 10-Q, our 2006 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.