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March 19, 2004
Guardian Expands Variable Annuity Product Line
New Annuity and New Rider Help Investors Plan For Retirement
NEW YORK, (March 17, 2004) - The Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly owned subsidiary of The Guardian Life Insurance Company of America, announced today the addition of The Guardian Investor Asset Buildersm variable annuity (Asset Builder) to its lineup of variable products. GIAC also introduced an optional Guaranteed Minimum Income Benefit (GMIB) Rider which can guarantee an annuity payment stream for an individual's retirement years. The new optional benefit will be available with The Guardian Investor Asset Builder and The Guardian Investor Income Accesssm (Income Access) variable annuities.
Asset Builder, a long-term investment vehicle designed for retirement purposes, offers a combination of features to help individuals accumulate and manage annuity assets before and during retirement. Asset Builder offers investment options managed by experienced and respected investment managers, tools to help individuals maintain a desired asset allocation mix, tax-deferred accumulation and a choice of death benefits to protect annuity assets. When an individual is ready to begin receiving annuity payments (often referred to as annuitizing the contract), Asset Builder offers a number of long-term payment options, including an option for a payment stream that can't be outlived.
"With the new Guaranteed Minimum Income Benefit rider, clients can know today what their minimum annuity income payment will be ten years from now," explained Bruce Long, President of Guardian Investor Services LLC, the company that distributes GIAC's variable annuity products. "And, they can still participate in the potential growth of equity markets."
The amount of guaranteed income is determined by applying the conservative GMIB annuity rates to the guaranteed income base which is the greater of: the premium payments accumulated at 5% per year, adjusted for withdrawals, until they accumulate to 2.5 times the cumulative net premium payments received or the annuitant attains age 85 (whichever occurs first), OR the highest contract anniversary prior to the annuitant's 81st birthday plus any premiums received after this date, adjusted for any partial withdrawals.
The annual fee for the GMIB is .50% of the guaranteed income base on the contract anniversary, deducted proportionally from each allocation option. In addition, other fees will apply and will vary depending on the features and underlying investment options an investor selects as well as the amount of the original investment and its ongoing accumulation value at each anniversary date. Depending on the performance of the investment options selected, the selection of the GMIB could result in the investor incurring higher contract charges without receiving the additional benefit.
The guaranteed income base is not available as cash but can only be converted to a lifetime income stream upon annuitization on the GMIB's 10th anniversary or any subsequent anniversary prior to the annuitant reaching age 85. The GMIB does not guarantee contract cash value or guarantee the performance of any investment option. Because this benefit is based on conservative actuarial factors, the level of lifetime income that is guaranteed may be less than the level that would be provided by the annuitization of a lower contract accumulation value at current annuity factors. Withdrawals will reduce GMIB benefits. The GMIB is only available at issue and is not available if the annuitant is age 75 or older. For contracts issued with the GMIB rider, the initial premium payment and any subsequent premium payments made in the first contract year cannot exceed $500,000 in the aggregate.
Additional fees apply to GIAC variable annuities and these fees will vary depending upon the variable annuity purchased. Operating expenses for the investment options range from 0.34% to 1.91%; actual charges will depend upon the variable investment options selected. Mortality and expense risk charges range from 1.05% 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, the annual contract fee is $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 may apply if any additional contract riders are selected. Product availability and features may vary by state. All contract benefits and the guaranteed income base and annuity payment guarantees are backed solely by the financial strength and claims-paying ability of GIAC. Withdrawals reduce the value of contract accumulation value and benefits. Due to market conditions, the return on assets will fluctuate in value, reflecting the performance of the underlying investment options chosen under a variable annuity. They involve investment risk including possible loss of the principal amount invested. Withdrawals or surrenders may be subject to surrender charges. Amounts withdrawn may be subject to ordinary income tax and, if taken prior to age 59 ½, a 10% IRS penalty may also apply.
GIAC variable annuities, including Asset Builder and Income Access, are sold by prospectus only, which contains important information about risks, fees and expenses. Investors should consider an investment company's investment objectives, risks, fees and expenses carefully before investing and should read the prospectus before investing or sending money. Prospectuses can be obtained by calling 800-221-3253. Additional information on Guardian's entire line of annuity products can be found at www.guardianinvestor.com. About Guardian and GIAC
Annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC) a Delaware corporation. Variable annuities and mutual funds are 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 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 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. Contract guarantees are backed solely by the financial strength and claims-paying ability of GIAC.
GIS member: NASD, SIPC.
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, 2003, Guardian and its subsidiaries had $37.2 billion in assets. With more than 5,000 employees, over 2,800 financial representatives and nearly 100 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k), mutual fund and annuity investment products, and trust services. More information on Guardian can be obtained at: www.guardianlife.com. | |
