Did you know?

In addition to providing a death benefit, some types of life insurance, like whole or universal, can build up cash value that you can use to pay for a home, college, or a caregiver.2

  • In exchange for premium payments, life insurance helps protect your loved ones financially by providing an income tax-free payment to them if they should lose you.3 There are many varieties of life insurance that you can choose based on your needs, but there are three common types: term life insurance, whole life insurance, and universal life insurance.

  • Whole life insurance is a type of permanent life insurance created to provide lifetime coverage, and usually has higher premium payments than term life insurance.4 Besides paying out lump sum payments to your loved ones if you pass away, whole life insurance can provide dividends and can also build up cash value that you can access at any time for any reason.5, 6

  • Did you know that only 40% of parents own disability insurance? That's less than those without kids, and it's where it's needed most.7 Disability income insurance helps replace a percentage of your regular income if you’re too sick or injured to work. It can also supplement long-term disability coverage that you may have through your employer. And employers can offer disability insurance that helps their employees get back to work sooner.

    How much disability insurance do I need?

"One in two parents say that saving enough money for their children’s college education is a major financial priority."

- 12th Annual Workplace Benefits Study, Guardian, 2023

Plan for your family’s education

College can rewrite the future and take your child’s life to new places. To prepare, you’ll need to start saving today. Options like 529 plans and whole life insurance policies each have unique advantages that can help.9 

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Disclaimer

1

12th Annual Workplace Benefits Study, Guardian 2023

2

Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial professional and refer to your individual whole life policy illustration for more information.

3

Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

4

All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.

5

Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.

6

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. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.

7

12th Annual Workplace Benefits Study, Guardian, 2023

8

Ibid

9

Investors should consider the investment objectives, risks, charges and expenses of a 529 plan carefully before investing. This and other information are contained in the Program Description, which may be obtained from your investment professional. Please read it before you invest.

A 529 plan is a tax-advantaged savings plan, issued and operated by a state or educational institution that helps families save for college. Investments in 529 plans are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed and are subject to investment risks, including loss of the principal amount invested. Tax implications vary significantly from state to state. If you or the designated beneficiary is not a resident of the state offering a 529 plan, you may want to consider, before investing, whether your state or the designated beneficiary's home state offers its residents a plan with state tax advantages or other benefits.

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