To Help Protect, Conserve and Transfer Wealth to Heirs
NEW YORK, N.Y., June 7, 2017 – The Guardian Life Insurance Company of America® (Guardian), one of the nation’s largest mutual life insurers and a leading provider of whole life, individual disability insurance and employee benefits, is introducing Guardian EstateGuard® Whole Life Insurance (17-SWL).
It offers individuals a unique, tax-advantaged1 financial strategy for protecting, conserving and transferring wealth to their heirs who would otherwise incur high estate taxes. In addition, Guardian EstateGuard Whole Life gives policy owners a unique benefit that accelerates the issuance of death benefits to help pay for unexpected expenses incurred as a result of a chronic illness.
Guardian EstateGuard Whole Life Insurance offers significant estate preservation strategies:
- Two people are insured under one policy, with a survivorship benefit for individuals with sizable estates, making it more economical than two separate policies.
- The policy cash value increases after the first death occurs, so the surviving insured can use the cash value to cover policy premiums and expenses or help supplement retirement income.2
- Clients are given the opportunity to add additional death benefit protection in the early years when they are designing their estate plan and trusts. If qualified, they can receive a 100 percent death benefit match of the base policy face amount, up to $5,000,000 in extra protection in the first four years.
There are also living benefits with EstateGuard Whole Life. Individuals are able to withdraw or borrow money from the policy’s cash value to meet living needs that will not be subject to income taxes.3 It can help supplement retirement income, be used for a down payment on a vacation home or cover any other sizable expenses.
“Leaving a lasting legacy is easier with EstateGuard Whole Life. Our clients get the stability of whole life insurance protection unaffected by market volatility, and tax-advantaged cash accumulations that can be passed on to heirs without a large tax responsibility,” says Andrew Gordon, Head of Life Product and Pricing. “Our clients also benefit from a solid financial strategy with three guarantees: a death benefit, level premium payments, and cash value that is guaranteed to increase each year until it reaches the face amount.4 Policyholders may also receive dividends,5 which they can use to increase the policy’s cash value and death benefit above the policy’s guarantees.”
To learn more about Guardian EstateGuard® Whole Life, please visit here.
1Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
2This Material is Intended For General Public Use. By providing this material, we are not undertaking to provide investment advice for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact one of our financial professionals for guidance and information specific to your individual situation
3Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
4All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
5Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
The Guardian Life Insurance Company of America® (Guardian) is one of the largest mutual life insurers, with $7.4 billion in capital and $1.5 billion in operating income (before taxes and dividends to policyholders) in 2016. Founded in 1860, the company has paid dividends to policyholders every year since 1868. Its offerings range from life insurance, disability income insurance, annuities, and investments to dental and vision insurance and employee benefits. The company has approximately 8,800 employees and a network of over 2,750 financial representatives in 58 agencies nationwide. For more information about Guardian, please visit our website, www.GuardianLife.com. You can also follow Guardian on Facebook, LinkedIn, Twitter and YouTube.
Financial information concerning The Guardian Life Insurance Company of America® as of December 31, 2016 on a statutory basis: Admitted Assets = $51.9 Billion; Liabilities = $45.7 Billion (including $39.4 Billion of Reserves); and Surplus = $6.2 Billion.