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February 01, 2007
GUARDIAN LAUNCHES NEW LIFETIME FOCUSSM ANNUITY RIDER
Helps Clients Who Seek Balance Between Asset Growth Potential and Guaranteed Withdrawals
NEW YORK, February 1, 2007 — Guardian today introduced a new guaranteed minimum withdrawal benefit with enhanced features that can help meet the needs of Boomers who want to save more for retirement, supplement traditional sources of lifetime retirement income and are seeking some guarantees. The new rider, Lifetime Focus, will be available with variable annuities issued by The Guardian Insurance & Annuity Company (GIAC). GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.
Lifetime Focus builds on the success of Guardian's popular Lifetime and Spousal AssetAccess riders, which were elected on more than 55% of GIAC annuities sold during the fourth quarter of 2006. The optional rider offers the potential for quarterly step-ups, a 5% minimum guarantee roll-up feature if no withdrawals are made in a contract year , and investment models that allow for greater participation in the equity markets. Quarterly step-ups are available for the first 30 contract years. Two of the four models offer an 80% equity and 20% fixed income allocation, while two others provide a 60% equity, 40% fixed income mix. The rider is available in a single life and a spousal version.
"Guardian's Boomer research shows that outliving financial assets and losing purchasing power due to inflation are serious concerns for the majority of those approaching retirement," said Bruce Long, president, Guardian Insurance & Annuity Company (GIAC). "Lifetime Focus was designed to help Boomers address both of these issues."
The new rider is available with The Guardian Investor Income Accesssm, The Guardian Investor Asset Buildersm and The Guardian CXCsm variable annuities.
GIAC's Income Accesssm, Asset Buildersm and CXCsm variable annuities are long-term investment vehicles designed for retirement purposes. They offer a combination of investment features to help individuals accumulate and manage assets before and during retirement. GIAC variable annuities offer professional investment management from a variety of well-respected firms, tax-deferral on any investment earnings, and optional living benefits that can provide lifetime withdrawal amounts while assets are invested for the future. They also offer a choice of annuity options that can provide guaranteed income payments for life.
Withdrawals of taxable amounts will be subject to ordinary income tax and possible mandatory federal income tax withholding and, if taken prior to age 59½, a 10% IRS penalty may also apply. Withdrawals affect the variable annuity’s death benefit, cash surrender value and any optional living benefits and may be subject to surrender charges. Withdrawals have the effect of reducing the variable annuity's death benefit, cash surrender value and any optional living benefits, including Lifetime Focus.
The annual cost of Lifetime Focus is 0.60% (maximum 1.25%) for the single version, and 0.75% (maximum 1.25%) for the spousal version, of the adjusted Guaranteed Withdrawal Balance. The adjusted Guaranteed Withdrawal Balance is the greater of total premium payments made or the Guaranteed Withdrawal balance on the day preceding deduction of the rider fee. Depending upon the performance of the underlying investment options, the selection of a Lifetime Focus rider may result in higher contract expenses for which no additional benefit is received.
For GIAC variable annuities, operating expenses for the investment options ranged from 0.37% to 1.51% for the 2005 fiscal year; actual charges will depend upon the variable investment options selected. Mortality and expense risk charges range from 1.00% to 1.55% of the net asset value of the variable investment options, depending on the variable annuity contract chosen. The annual administrative expense is 0.20% of the net asset value of the variable investment options. If the accumulation value in the contract is less than $100,000 on the contract's anniversary date, there is an annual contract fee of $35. The maximum potential declining surrender charge is 8%. Surrender charges are specific to each variable annuity; refer to each variable annuity's prospectus for more information. Additional charges will apply if any additional contract riders are selected. Product availability and features may vary by state. All contract benefits and annuity payment guarantees are backed solely by the strength and claims-paying ability of GIAC.
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. As of December 31, 2005, Guardian and its subsidiaries had $36.9 billion in assets (on a consolidated statutory basis). With more than 5,000 employees and 3,000 financial representatives, as well as over 85 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses, and their employees with life, disability, health, long-term care, and dental insurance products, and offer 401(k), financial products and trust services. More information about Guardian can be obtained at: www.guardianlife.com.
Annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation, and distributed by Guardian Investor Services LLC (GIS). GIAC and GIS are located at 7 Hanover Square, NY, NY 10004. GIAC and GIS are wholly owned subsidiaries of The Guardian Life Insurance Company of America, New York, NY.
Variable annuities and their underlying investment options are sold by prospectuses only. Prospectuses contain important information, including fees and expenses. Please read them carefully before investing or sending money. You should consider the investment objectives, risks, fees and charges of the investment company carefully before investing. Prospectuses contain this and other important information and can be obtained by contacting your financial professional or calling 800-221-3253.
Variable annuities and their underlying investment options are not deposits or obligations of, or guaranteed or endorsed by, any bank or depository institution, nor are they insured by the Federal Deposit Insurance Corporation (FDIC), The Federal Reserve Board, the National Credit Union Association (NCUA) or any other agency. They involve investment risk, including possible loss of the principal amount invested. Investment return and principal value may fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Product and rider availability and features may vary by state.
GIS is a member of NASD, SIPC.
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