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March 21, 2006
GUARDIAN EXPANDS AVAILABILITY OF ACCELERATED DEATH BENEFIT RIDER OFFERS ACCESS TO LIFE INSURANCE PROCEEDS IN THE CASE OF DEBILITATING ILLNESS
Provides Protection at No Extra Premium
| For media inquiries, contact:
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Paige Holden
Manning Selvage & Lee
Tel: 212.468.4056
Fax: 212.468.3654
paige.holden@mslpr.com
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| Anayo Afolabi
The Guardian Life Insurance Company of America
Tel: 212.598.8329
Fax: 212.919.2790
anayo_afolabi@glic.com
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New York, March 21, 2006 — The Guardian Life Insurance Company of America (Guardian) today announced that the company's Enhanced Accelerated Benefit Rider (EABR) is now available in 42 states, including New York — the most recent state addition. EABR enables whole life policyholders to obtain a portion of the death benefit while the insured is still living, due to terminal or permanent chronic illness of the insured.
Unlike other life insurance early payment options on the market, the rider is included at no additional premium and there are no restrictions on how the accelerated funds are used. Guardian's EABR distributions are tax-free, in most circumstances, under current law.
"Sometimes extra cash can help a terminally or chronically ill person enjoy a better quality of life," said Robert Lehmert, Guardian Vice President, Life Marketing Services. "In many cases, the EABR can act as a supplement to long term care insurance (LTCI) or as a financial resource for those who were too young to consider buying LTCI before they fell ill. Because there is no premium collected for the rider, there is no cost for the additional benefit unless a claim occurs."
Policyholders who are permanently chronically ill and unable to perform at least two of six activities of daily living (ADLs: eating, bathing, continence, dressing, toileting and transferring) as defined by the IRS, or who have a permanent cognitive impairment that requires supervision, can receive benefits. Unlike similar riders, there is no requirement for catastrophic illness or organ transplant before benefits are triggered.
For chronic illness, the total lifetime maximum is 100 percent of the cash value of the policy, plus between 20 percent and 80 percent of the policy's Net Amount at Risk (NAR), depending on the age of the insured when the first claim occurs. Annual benefit limits are set using the IRS definition for tax-free per diem long-term care benefits — $91,250 in 2006. Some states may impose other limitations. Payments begin after a 90-day waiting period in most states.
The benefit can be paid immediately to terminally ill policyholders. The terminally ill can receive the full cash value plus 80 percent of the policy's NAR. The cash advances on the death benefit do not have to be repaid even if the insured survives.
The EABR rider, which can be included on virtually any of Guardian's whole life policies, must be elected at issue of a policy and underwritten. Accelerated funds reduce the death benefit and cash surrender value.
For more information please contact your local Guardian agent or log on to to find a representative near you.
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2004, Guardian and its subsidiaries had $39.5 billion in assets. With more than 5,000 employees and 2,900 financial representatives, as well as over 80 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their
employees with life, disability, health and dental insurance products, and offer 401(k), financial products and trust services. More information about Guardian can be obtained at: www.guardianlife.com.
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