Whole•istic Thinking

Whole life insurance is one of the key ingredients to living confidently.

Understanding and owning whole life insurance correlates with higher financial and emotional confidence.

Whole Life Insurance at a Glance:

A chart showing different percentages based on copy below it

1.5X

48%

78%

83%

The most confident American workers are more than 1.5 times likely to own whole life insurance

of households need more life insurance

Life insurance costs 3 times less than most people think

of working Americans do not completely understand whole life insurance

of working Americans place a priority on providing for their family if they die or are unable to work

Whole Life Insurance at a Glance:

The most confident American workers are more than 1.5 times likely to own whole life insurance.

Life insurance costs 3 times less than most people think

of working Americans place a priority on providing for their family if they die or are unable to work

Resources

The Whole Truth: Benefits of Whole Life Insurance

Many working Americans identify their top life priorities as protecting their family, having enough money in retirement, and educating their children.

Did you know that owners of whole life insurance have access to a wide range of benefits to support those priorities?

Benefits

Guaranteed death benefit protection to help ensure a legacy^[1]
Guaranteed living benefits such as cash value that can be applied toward things like the purchase of a new home, funding education or a business, supplementing retirement income, and charitable giving^[2][9]
Guaranteed premiums that won’t change, once the policy is in force^[3]
Potential dividend payments and additional growth^[4]
Built-in tax advantages on both the cash value and death benefit^[5]
Protection from disability or illness through the election of optional riders^[6]
Protection from creditors, depending on your state^[7]

Whole Life Myths vs. Facts

Take the mystery out of whole life.

MYTH: The whole life policy you own can increase in cost as you age or become ill and the premiums will go on forever.

FACT: Whole life premiums are guaranteed to never increase once the policy is purchased. There are various policy designs that can avoid “forever” premium payments.

Two women smiling while looking at a phone

MYTH: Whole life is expensive.

FACT: While whole life costs more than term life, it includes many additional living benefits, such as cash value. Plus, it has a permanent death benefit, while you may outlive a term life death benefit.

An image of a father, mother, and their two children taking selfies in outdoor setting

MYTH: Term life is a better option for most people.

FACT: Whole life offers permanent lifetime protection, while term offers only temporary protection. Consequently, people may use both for optimal protection and benefits.

An elderly couple smiling while walking outside in cold weather

MYTH: People rarely use the living benefits of whole life when they’re alive.

FACT: Many people use the living benefits of whole life as a source for cash.

A man holding an “open” sign against a window

MYTH: The whole life policy you own can increase in cost as you age or become ill and the premiums will go on forever.

Fact: Whole life premiums are guaranteed to never increase once the policy is purchased. There are various policy designs that can avoid “forever” premium payments.

MYTH: Whole life is expensive.

MYTH: Term life is a better option for most people.

FACT: Whole life offers permanent lifetime protection, while term offers only temporary protection. Consequently, people may use both for optimal protection and benefits.

MYTH: People rarely use the living benefits of whole life when they’re alive.

FACT: Many people use the living benefits of whole life as a source for cash.

An Alternative Asset Class

Did you know that whole life is considered an asset class that can help diversify your portfolio?

The cash value in a whole life insurance policy can help you manage risk when combined with a mix of fixed assets (like bonds) and equity assets (like stocks). Additionally, it’s insulated from market volatility, potentially increasing rewards. So, it’s there when you need it — now, or in the future.

A workmap showing the benefits of Whole Life insurance

Find out how whole life insurance can help reduce overall portfolio risk and protect portfolio performance, potentially increasing reward.

LEARN MORE

How much protection is right for you?

While term insurance can protect you in the short-term, the right amount of whole life protection you may want depends on where you are in life, who depends on you, and your earning potential. Generally speaking, the younger you are, the more years of income you may need to take into account when deciding on the right policy amount for you.

30x Income

20x Income

15x Income

10x Income

5x Income

The Importance of Protection First

What does protection first mean? While saving for retirement and paying down debt is important, it shouldn’t come at the expense of adequate protection and coverage for you and your family. The most financially confident Americans are more likely to prioritize protection and own the right tools to help get the job done.^[8]

Start Building Your Whole Story

There’s more to whole life insurance than you may already know. Check out our whole life resources page to find out more about the ways it can help you live with greater financial and emotional confidence.

If you choose life insurance from a mutual versus a stock company, you’ll know that the company’s long-term interests are aligned with yours as a policyholder.

Check out our resources

Start Building Your Whole Story

Check out our resources

Sources & Important Disclosures.

2023-162930

Sources

LIMRA Life Insurance Barometer Study, 2021

https://www.limra.com/uploadedFiles/limra.com/LIMRA_Root/Posts/PR/_Media/PDFs/Facts-of-Life-2016.pdf

http://www.limra.com/Posts/MarketFacts/_Digital_Edition/MarketFacts_-_2015_Number_3.aspx

¹All 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.

²Policy 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.

³Guaranteed premium payments are required to be paid EACH year of the policy to lock in the guaranteed benefits and if not paid, the policy may lapse.

⁴Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.

⁵Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

⁶Riders may incur an additional cost or premium. Rider benefits may not be available in all states.

⁷State creditor protection for life insurance policies varies by state. Contact your state’s insurance department or consult your legal advisor regarding your individual situation.

⁸The Guardian Study of Financial and Emotional Confidence™, 2021.

⁹Some 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 representative and refer to your individual whole life policy illustration for more information.

Disclaimer

The total dividend calculation includes mortality experience and expense management as well as investment results. For a whole life policy that is not a Modified Endowment Contract (MEC), if the amount of dividend payments used to repay the loan principal or interest exceeds the cost basis (cumulative premiums) of the policy, the excess dividend payments may be subject to income taxes.