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October 27, 2003
Guardian Rounds Out Permanent Life Product Portfolio with Flexible Universal Life Offering
NEW YORK, N.Y., [October 27, 2003] -- The Guardian Life Insurance Company introduced a new Universal Life product that offers customers "freedom of choice" through a broad range of features and riders that can be tailored to meet their individual needs.
"This product's versatile design recognizes that one size definitely doesn't fit all," said Kenneth E. Murrell, JD, CLU, Second Vice President of Product Marketing and Research at Berkshire Life Insurance Company of America, the Guardian wholly owned stock subsidiary providing the Universal Life (UL) offering.
Uniting the affordability of term life insurance with the permanent protection features of traditional whole life insurance, this UL offering - Guardian's first foray into the UL market - affords consumers a high degree of flexibility, with a number of competitive features that make it possible to tailor individual policies to accommodate a wide and changeable universe of lifestyle needs and circumstances.
These "freedom of choice" options include:
-- Flexible premiums-Unlike most other forms of insurance, UL doesn't lock the policyowner into a fixed premium that has to be paid on a rigid schedule to keep the coverage in force. As long as certain minimum requirements are met, the policyowner can reduce or even skip a payment without the risk of a policy lapse.
-- Two guarantees against policy lapses-A 5-Year No-Lapse Guarantee covers the five initial policy years, as long as the policyowner meets the minimum premium scale during that period. And, an optional Secondary Guarantee Coverage Rider guarantees that a policy will stay in force even if a policyowner's account balance goes to zero. If he or she falls behind on premiums, this rider allows the policyowner to literally "catch up" their payments without any limitations placed on usage.
-- Two waiver riders to cover insurance costs in the event of disability-A Waiver of Monthly Deductions rider waives the charges that would normally be deducted from a policy account if the policyowner becomes totally disabled. This benefit carries a superior "own-occupation" definition of disability. The Disability Benefit Rider deposits an amount of money (specified when the policy is issued) into the policy account each time a premium is due. This rider also offers the five-year "own-occ" definition of total disability.
-- Increased coverage opportunities-The Guaranteed Insurability Option enables a policyowner to increase the face amount of his or her policy on certain policy anniversaries, without additional medical exams. The adjustable Annual Renewable Term rider adds an annually renewable level death benefit to the base policy, especially useful to the policyowner who needs a relatively high face amount (coverage can be up to four times the face amount of the base policy) but doesn't want to risk a cash-flow problem.
-- Substitution options-Particularly important if UL is being used for a business need (such as insuring a key person or funding a buyout), the Exchange of Insureds Rider allows a departing key employee, owner or partner to be replaced by a new insured, without having to purchase new coverage.
-- Policy loan provisions-Not only may a UL policyowner take loans against his or her policy account, after the policy's tenth anniversary its owner is eligible for Preferred Loans with a significantly higher crediting rate.
-- Three options for death benefit payment-Option 1 provides a level death benefit equal to the policy's total face amount. Option 2 provides a variable benefit equal to the sum of the policy's total face amount and the policy account value. Option 3 provides a benefit equal to the policy's total face amount plus the net amount of any premiums that have accumulated. The policyowner may even be able to switch options post-issue if his or her circumstances change and a different death benefit would be preferable.
Maturity Extended
In addition to its customizing features, this new UL offering extends policy maturity to age 121. By extending the maturity to such an advanced age, there is no real danger that the policy will mature during the life of the insured, triggering taxation on the policy values.
"Obviously, the company doesn't really expect many policyowners to live to be 121," acknowledged Berkshire Life's Murrell. "But, if they do, another attractive feature of our UL is that after age 100 they won't be paying any monthly charges or premiums. People are living longer, after all, and this policy takes that into account.
"With its guaranteed protection, affordability and ability to be tailored to meet any consumer need or set of circumstances, UL signifies Guardian's recommitment to the brokerage market," he continued. "We understand there is a fairly large pool of brokers who need a competitive, flexible UL product-especially in this still-volatile economic climate-and who'll be thrilled to be able to look to Guardian to fill the bill."
About Guardian
The Guardian Life Insurance Company of America, New York, NY, is the fourth largest mutual life insurance company in the U.S. As of December 31, 2002, Guardian and its subsidiaries had $34.1 billion in assets. Founded in 1860, Guardian is listed among Fortune Magazine's top 300 businesses and was ranked in the top 10 on Fortune's 2002 "Most Admired" life and health insurers list. With 5,500 employees, over 2,700 financial representatives and 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.
Universal Life Insurance Policy Form L-150 (06/02) is provided by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Products not available in all states. Product provisions and features may vary from state to state.
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