Your retirement strategy and Whole Life
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Whole life insurance can be an essential part of your retirement strategy
You buy whole life insurance as protection for your loved ones and your legacy. But it can be so much more.
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Saving for retirement can be a challenge
[Graphic of a pillar] Social Security. Social Security is expected to be depleted by the 2030s1
[Graphic of an ambulance] Health Care Costs. Couples can expect to pay $295,000 in health care costs in retirement (not including long-term care)²
[Graphic of a calculator] Taxes. In retirement, your marginal tax rate could jump as high as 37%3
Here’s how whole life can help address these concerns
1 Cash value
[Graphic of a green checkmark] Accumulates over the life of the policy⁴
[Graphic of a green checkmark] Insulated from market fluctuations with no contribution limits
2 Policy loans
[Graphic of a green checkmark] Take a loan against your whole life policy at any age, for any reason, without penalty …
[Graphic of a green checkmark] … as long as there is sufficient cash value in the policy
3 Tax benefits
[Graphic of a green checkmark] No income tax on potential cash value growth on policy loans⁶
[Graphic of a green checkmark] Not part of the Social Security taxation formula
[Graphic of a green checkmark] Withdrawals are generally tax free up to the amount of premiums paid
Speak to your trusted Financial Representative to learn more about how whole life insurance can help strengthen your retirement strategy.
1 MAARP. “How much longer will Social Security be around?” https://www.aarp.org/retirement/social-security/questionsanswers/how-much-longer-will-social-security-be-around.html
2 Fidelity Viewpoints. “How to plan for rising health care costs.” August 3, 2020. https://www.fidelity.com/viewpoints/personalfinance/plan-for-rising-health-care-costs.
3 Retirement Tax Bracket: How Retirement Account Withdrawals Affect It” https://www.investopedia.com/ask/
⁴ Some whole life polices do not have cash values in the first two years. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
⁵ Policy benefits are reduced by any outstanding loans and loan interest. Dividends, if any, are affected by policy loans and loan interest. If the policy lapses, or is surrendered, any 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 59½, any taxable distribution from the policy may also be subject to a 10% federal tax penalty.
⁶ Guardian, its subsidiaries, agents and employees do not give tax or legal advice. You should consult your tax or legal advisor regarding your individual situation.
Whole life insurance is intended to provide death benefit protection for an individual’s entire life. With payment of the required guaranteed premiums, you will receive a guaranteed death benefit and guaranteed cash values inside the policy. Guarantees are based on the claims-paying ability of the issuing insurance company. Dividends are not guaranteed and are declared annually by the issuing insurance company’s board of directors. Any loans or withdrawals reduce the policy’s death benefits and cash values, and affect the policy’s dividend and guarantees. Whole life insurance should be considered for its long term value. Early cash value accumulation and early payment of dividends depend upon policy type and/or policy design, and cash value accumulation is offset by insurance and company expenses. Consult with your Guardian representative and refer to your whole life insurance illustration for more information about your particular whole life insurance policy.
Guardian® is a registered trademark of The Guardian Life Insurance Company of America.
© Copyright 2021 The Guardian Life Insurance Company of America
Pub10086 (03/21) 2021-118854 (Exp.04/23)