NEW YORK--(BUSINESS WIRE)--
As part of its ongoing commitment to provide consumers with a flexible array of tools to help protect their future financial security, The Guardian Life Insurance Company of America announced important enhancements to two policies in its flagship Whole Life portfolio.
Known as 20 Pay Whole Life and Life Paid Up at Age 65, both policies offer lifetime protection without the worry of having to pay for it over a lifetime: The first enables clients to fully pay for their permanent coverage in 20 annual premium payments, while the second ensures that premiums stop when clients are ready to start enjoying their retirement.
Now Guardian has optimized policy distributions (loans/withdrawals) on both policies, making them ideally suited for someone who wants to obtain guaranteed protection now at a guaranteed premium, while accumulating cash values (dividends) that may be used later to fund a supplemental retirement benefit or other needs down the road. This enhancement in particular may offer a measure of confidence to a generational cohort that has been disproportionately impacted by the turmoil of the economic landscape, noted Michael Ferik, FSA, Guardian Senior Vice President, Individual Life.
“Guardian research reveals anxiety among all Americans, regardless of age, about their ability to save for a comfortable retirement,” observed Ferik, “but this trepidation is felt most deeply by members of Generation X, whose eldest members will start to retire in 20 years.”
According to Financial Guidance for the Whole Life: Generations Y, X & Boom, a national Guardian survey designed to gauge generational perceptions of the economy and its impact on their financial futures, Gen X (defined as Americans between 47 years of age and those in their early 30s) feels the least financially secure (47%) of any group, compared to about one-third of the general population. Gen X members are also the most concerned (59%) that they will not have enough saved for retirement, compared to half of the general population, perhaps reflecting the sequence of economic forces that have impacted the continuum of their working lives – from the 1987 stock market crash to unprecedented levels of college debt to the persistent housing slump.
“By optimizing policy distributions on these limited-pay Whole Life products, we’ve enhanced an already powerful tool for someone who wants to protect his or her earnings potential now and also supplement a retirement income strategy,” commented Ferik, noting that the policies are designed so that their fixed loan interest rate of 8% changes to 4% at the later of age 65 or the 21st year of the policy.
Ferik believes that the guarantees built into Whole Life’s product design will have particular appeal for the demographic best positioned, age-wise, to take advantage of the newly enhanced 20 Pay Whole Life and Life Paid Up at Age 65 offerings: Generation X. While most Guardian survey respondents (60%) believe it is important to keep investing in their retirement funds during a down economy, skittish Gen X is the exception, with 47% saying that investing in their retirement fund is actually less important during this time of economic instability.
“In uncertain times, there’s a lot to be said for having an asset with guaranteed cash value that protects one’s hard-earned savings from market risk,” Ferik said.
In addition, for parents and grandparents of any generation, 20 Pay Whole Life is versatile enough and equally effective for:
Accumulating funds for college once they start a family (or even before the baby arrives; unlike an Education IRA or 529 Plan, a Whole Life policy doesn’t require that the child be born and have a Social Security number); and Giving the gift of life insurance to a child or grandchild – the optimized version makes juvenile policies even more attractive.This release pertains to Guardian Policy Form Numbers 12-L20 and 12-L65. Guardian, its subsidiaries, agents or employees do not provide legal or tax advice. Individuals should consult their tax or legal advisor regarding their individual situation. Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors. 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.
About Guardian
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life, disability income and dental insurance products, and offer 401(k), annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide.
For more information about Guardian, please visit www.GuardianLife.com.
