Hey everyone, we are back with Alden Armstrong, the head of product here at Better Wealth. Today we're delving into the Guardian Life Insurance Company. Due to high demand, Alden is here to explore the ins and outs—the good, the bad, and the ugly—of this life insurance carrier. We'll also be sharing some numbers and case studies for better clarity.
Overview
- One of the largest four mutual companies in the United States
- Founded in 1860 and has been mutual since 1925
- Declared a 1.4 billion dollar dividend this year
- Direct recognition when it comes to loan recognition
- Comdex score: 99 out of 100
- Capable of writing insurance in New York
Unique Features and Riders
- Two types of term rider: annual renewable term and level term
- True long-term care insurance riders available
- Disability income rider for income if disabled
- Paid-up additions waiver for maintaining policy while disabled
- Index participation feature rider for potential increased dividends
Underwriting and Technology
- Approval timeframe: approximately eight weeks
- Accelerated underwriting: approximately three weeks
- Offers a mobile app for clients
Strengths of Guardian Life Insurance
- Whole life and long-term care blends
- Major player in disability income insurance
- Strong at premium finance
Areas for Improvement
- Cash flow design efficiency
- Below industry average agent compensation
Case Study: Front-Loaded Design Policy
This case study is based on a 40-year-old male with a front-load of $250,000 a year.
- Annual premium: $50,000, drops to zero after 10 years.
- Illustration offset: Maturing policy to drive cash value and maintain the death benefit.
- Increases in paid-up additions result in decreasing term rider cost.
- Cash value in the first year: 90%
- Break-even point after four years with over $400,000 in cash value
Conclusion
Guardian Life Insurance Company offers unique advantages, especially for those looking for stability and solid performance in the insurance sector. With compelling features and riders, Guardian remains a viable option for various client needs despite some areas needing improvement.