The Guardian Life Insurance Company of America 7 Hanover Square, New York, NY 10004

Types ofTypes of

Types ofTypes of

Nothing paid in event insured survivesNothing paid in event insured survives period (period (no cash or loan valuesno cash or loan values).).

Face amountFace amount of policy of policy paid in event of deathpaid in event of death..

Protection for a Protection for a specified periodspecified period..

Types ofTypes of

Insured wants "Insured wants "pure" protectionpure" protection and invest savings or investment and invest savings or investment dollars elsewhere.dollars elsewhere.

Need is permanent but insured Need is permanent but insured cannot afford premiumcannot afford premium for for permanent life insurance.permanent life insurance.

Need is Need is temporary.temporary.

UsedUsed whenwhen:

Level Term -Level Term -

Decreasing Term -Decreasing Term -

Yearly Renewal Term -Yearly Renewal Term - Level Death BenefitLevel Death Benefit; ; premium increasespremium increases annually.annually.

Death Benefit decreasesDeath Benefit decreases over period of over period of contract; contract; level premiumlevel premium..

Specified level amount of insurance and level Specified level amount of insurance and level premium for premium for initial period of contractinitial period of contract. . May be May be renewable renewable at end of initial period, at end of initial period, usuallyusually at a at a higher premium.higher premium.

Types ofTypes of

Death BenefitDeath Benefit

3030 4040

Premium RatesPremium Rates

* Guardian’s “10+ Term” is level premium for 10 years (guaranteed level for 3 years), increasing to a higher level premium years 11-15. Death Benefit is level. It is convertible, not renewable. Convertible only in the first 5 years.

4545

Death Benefit Payable

Death Benefit Payable

Age 35Age 35 Age 45Age 45Age 40Age 40

$50,000$50,000

$40,000$40,000$30,000$30,000

$20,000$20,000$10,000$10,000

$0$0

$50,000 Face Amount$50,000 Face Amount

Age 35Age 35 Age 40Age 40

Automatically renews each year at a Automatically renews each year at a higher premium as long ashigher premium as long aspremium payments premium payments are made.are made.

Premium RatesPremium Rates

Furnishes Furnishes protection for one’s whole lifeprotection for one’s whole life..

In one lump sum (premiums paid in advance)In one lump sum (premiums paid in advance)

Over a limited period (20 year, to age 65, lifeOver a limited period (20 year, to age 65, life expectancy)expectancy)

Throughout insured's lifetime (ordinary or "straight" Throughout insured's lifetime (ordinary or "straight" life)life)

Premiums may be paid:Premiums may be paid:

Types ofTypes of

Has a saving or "Has a saving or "cash valuecash value" component " component

The The excess makes up the deficiency of premiumsexcess makes up the deficiency of premiums in later yearsin later years when annual premium is not when annual premium is not sufficient to pay annual cost of insurance. These sufficient to pay annual cost of insurance. These extra premiums are held by the insurer, creating extra premiums are held by the insurer, creating the "cash value" of the policy.the "cash value" of the policy.

Early years of Early years of premium more than enoughpremium more than enough to to pay the pay the current cost of insurancecurrent cost of insurance protection. protection.

Types ofTypes of

$50,000 Policy Face Amount$50,000 Policy Face Amount

Age: 35Age: 35 65654545 5555 7575 8585 9595 100100

PremiumGuaranteed C

ash

Guaranteed Cash

Value By C

ontract*

Value By C

ontract*

* Values are guaranteed by contract provision.

$50,000 Policy Face Amount$50,000 Policy Face Amount

Age: 35Age: 35 65654545 5555 7575 8585 9595 100100

Premium

Dividends buy Paid-up

Dividends buy Paid-up

Additional in

surance

Additional in

surance

Gtd. C

ash

Gtd. C

ash V

alues

Values

Cash Value Build-upCash Value Build-up

from Dividendsfrom Dividends

Values of Whole Life With Values of Whole Life With Different Payment PeriodsDifferent Payment Periods

Death BenefitDeath Benefit

Age: 35Age: 35 65654545 5555 7575 8585 9595 100100

Cash ValuesCash Values

20-Pay

20-Pay

L65L65

L100/L1000

L100/L1000

These are “paid-up” policies (no further premium is due after the payment period). However cash value and death benefit continue to increase.

$100,000 Policy Face Amount$100,000 Policy Face Amount

Age: 35Age: 35 65654545 5555 7575 8585 9595 100100

$50,000 $50,000 Whole Life PortionWhole Life Portion

$50,000 $50,000 Term PortionTerm Portion

Gtd. CashGtd. Cash ValuesValues

Premium

Dividends buy Term portion Dividends buy Term portion with excess buying ADDNS. with excess buying ADDNS. Each year as whole life portion Each year as whole life portion increases from ADDNS, less increases from ADDNS, less term is needed.term is needed.

Paid up Additions Paid up Additions from Dividendsfrom Dividends

Same concept as whole life with:Same concept as whole life with:

Policy Policy cash valuescash values and/or and/or death benefitsdeath benefits may may fluctuatefluctuate based on performance of investments based on performance of investments in which policy values are placed.in which policy values are placed.

Cash valueCash value component component directeddirected into select sub- into select sub- accounts (usually mutual fund-style accounts, accounts (usually mutual fund-style accounts, or money market accounts) or money market accounts) by the policy owner.by the policy owner.

A "A "floor" premiumfloor" premium necessary necessary to maintain deathto maintain death benefitbenefit..

Types ofTypes of

Types ofTypes of

$100,000 Policy Face Amount$100,000 Policy Face Amount

Age: 35Age: 35 65654545 5555 7575 8585 9595 100100

CashCash Value Build-upValue Build-up

Minimum Premium to Guarantee Death Benefit

Level or Increasing Death BenefitLevel or Increasing Death Benefit

Guaranteed Death Benefit

Flexible premiumFlexible premium in concept in concept..

From which is taken From which is taken cost of term insurance, cost of term insurance, expenses, and riders.expenses, and riders.

SeparatesSeparates "pure" "pure" insuranceinsurance protection protection (term element) (term element) fromfrom the the investment investment element in the policyelement in the policy.

Cash value acts as fund:Cash value acts as fund:

To which is credited To which is credited interest incomeinterest income on on the fund.the fund.

Types ofTypes of

Level Death BenefitLevel Death BenefitCorridor

Pure Protection

Accumulation Account

Level Death Benefit (until Accumulation Account performance forces it up, to maintain a “corridor” of protection), flexible Premium with some constraints,

no policy dividends paid.

Increasing Death BenefitIncreasing Death Benefit

Cash Value

Pure Protection

Increasing Death Benefit (based on Accumulation Account performance), flexible Premium with some

constraints, no policy dividends paid.

Same concept as Universal Life but Same concept as Universal Life but investment element directedinvestment element directed into select into select sub-accounts sub-accounts by the policy ownerby the policy owner..

Policy Policy cash valuescash values and/or and/or death benefitsdeath benefits may fluctuatemay fluctuate based on performance of based on performance of investment in which policy values are investment in which policy values are placed.placed.

Types ofTypes of

Death BenefitDeath Benefit

Pure Protection

Accumulation Value is

based on performance of sub-account

Level Death Benefit, flexible Premium with some constraints, no policy dividends paid.

Corridor

Next, See Important Next, See Important Features of Life Insurance Features of Life Insurance

inin

The Guardian Life Insurance Company of America 7 Hanover Square, New York, NY 10004