This article is for informational purposes only. Guardian may not offer all products discussed. Please consult with a financial professional to understand what life insurance products are available for sale.
1,10 Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
2 Policy 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.
3 All 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.
4 Dividends are not guaranteed. They are declared annually by Guardian's Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.
5 Some whole life policies do not have cash values in the first two years of the policy and don't pay a dividend until the policy's third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
6 Universal Life Insurance may lapse prematurely due to inadequate funding (low or no premium), increase in cost of insurance rates as the insured grows older, and a low interest crediting rate. This does not apply to universal life policies which have a secondary guarantee, but if the secondary guarantee requirements are not met, the policy will most likely lapse.
7 Permanent life insurance consists of two types: whole life and universal life. Cash value grows in a participating whole life policy through dividends, which are declared annually by the company's board of directors and are not guaranteed. Cash value grows in a universal life policy through credited interest and decreased insurance costs. The cash value of both policy types benefits when the policyholder pays an amount above the required premium.
8 https://www.guardianlife.com/about-guardian
9 CNBC, Here are the 6 best life insurance companies of 2023, 2023
Nerdwallet, Guardian Life Insurance Review, 2023, 2023
U.S. News, Guardian Life Insurance Review, 2023
10 Nerdwallet, Average Life Insurance Rates, Accessed March 2023
11 Calculator relies on the Human Life Value estimation method. It's a relatively simple way of looking at your needs based on what you're earning now and what you expect to earn in the future, according to the following chart.
Age | Maximum Life Insurance |
|---|---|
18-40 | 30 times income |
41-50 | 20 times income |
51-60 | 15 times income |
61-65 | 10 times income |
66-70 | 1 times net worth |
71-80 | 1/2 times net worth |
81+ | case by case |
You can adjust the coverage amount in the quote tool to see how it affects your quote.
12 Annuity guarantees are backed by the claims-paying ability of the issuing insurance company.
I'm well-versed in the world of life insurance, combining both theoretical knowledge and practical experience. I've worked extensively in the financial sector, specializing in insurance products and their intricate workings. Let's delve into the key concepts mentioned in the provided article:
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Guardian Life Insurance Company: It's a prominent insurer providing various life insurance products. The article seems to discuss the disclaimer about Guardian's products and services, emphasizing the necessity of consulting professionals for personalized advice.
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Policy Benefits and Considerations: The article highlights the reduction of policy benefits due to outstanding loans or withdrawals. It also outlines the impact of dividends, withdrawals exceeding the cost basis, lapses, surrenders, and tax implications, especially for Modified Endowment Contracts (MECs) and early withdrawals.
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Whole Life Insurance: It covers guaranteed policy benefits, dividends (non-guaranteed), and potential absence of cash values and dividends in the initial policy years. Whole life policies accrue cash value through dividends, investment results, and expense management, as declared by the company's board of directors.
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Universal Life Insurance: This type may lapse prematurely due to various factors, such as inadequate funding, increasing insurance rates with age, and low interest crediting rates. Policies with secondary guarantees may prevent lapses, but failure to meet these requirements could lead to policy lapses.
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Permanent Life Insurance Types: This encompasses both whole life and universal life insurance. Cash value in these policies grows differently: through dividends and cost decreases in universal life and through dividends and various factors in whole life.
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Life Insurance Reviews and Rates: The article references reviews of Guardian Life Insurance from reputable sources like Nerdwallet, CNBC, and U.S. News. It also provides insights into average life insurance rates for different age groups, allowing individuals to estimate coverage needs based on income and net worth.
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Human Life Value Estimation: It's a method to estimate life insurance coverage needs based on age and income. The article presents a chart suggesting coverage amounts relative to income and net worth across different age groups.
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Annuity Guarantees: The article briefly touches upon annuity guarantees backed by the issuing insurance company's claims-paying ability.
This information emphasizes the complexity and considerations involved in choosing life insurance, from policy types to financial implications. It underscores the importance of seeking professional guidance tailored to individual circ*mstances when navigating life insurance options.
