Lifetime Focus(R) Rider Helps Clients Who Seek Balance Between Asset Growth
Potential and Guaranteed Withdrawals
NEW YORK, Jan. 3 /PRNewswire/ -- Guardian today launched a number of
enhancements to its guaranteed minimum withdrawal benefit rider (GMWB) called
Lifetime Focus. The rider's new features can help meet the needs of investors
who want their retirement savings to benefit from market upside potential with
built-in lifetime withdrawal guarantees that will not decline so long as
certain conditions are met.
The new enhancements on the Lifetime Focus GMWB rider will be available
with variable annuities issued by The Guardian Insurance & Annuity Company
(GIAC). GIAC is a wholly owned subsidiary of The Guardian Life Insurance
Company of America.
Lifetime Focus was designed to help retirees generate a guaranteed
withdrawal amount to supplement retirement income that they will not outlive.
The new enhancements, which include an increase in roll-up amounts, younger
age availability, and an increase in the maximum roll-up, will make it easier
for clients to increase the rider balance that is used to determine the
guaranteed withdrawal amount and build more income for their retirement.
Enhancements include:
-- If no withdrawals are taken during a contract year, the Guaranteed
Withdrawal Balance will increase by a minimum of 6% (up from 5%).
-- The Lifetime Withdrawal Amount is now available at age 60 (instead of
age 65) in the version of the rider designed for a single covered life
and age 62 (instead of age 65) in the version designed for married
couples.
-- An increase in the maximum benefit provided by the GMWB minimum
guarantee roll-up from 175% to 200% of the total premiums paid prior to
the first withdrawal.
"We are committed to helping retirees and pre-retirees, including small
business owners and their employees, take the steps that will make it easier
for them to live comfortably in retirement," said Peggy Coppola, senior vice
president, GIAC. "Guardian's variable annuities are designed largely to meet
concerns about longevity and inflation risks. Boomers are an active generation
that can expect to live longer lives than their parents. Annuities can help
boomers, in particular, make the best of their retirement by providing access
to income sources that they won't outlive."
The new Lifetime Focus rider is available with all GIAC variable
annuities.
GIAC's variable annuities are long-term investment vehicles designed for
retirement purposes. They offer a combination of investment features to help
individuals accumulate and manage assets before and during retirement. GIAC
variable annuities offer professional investment management from a variety of
well-respected firms, tax-deferral on any investment earnings, and optional
living benefits that can provide lifetime withdrawal amounts while assets are
invested for the future. They also offer a choice of annuity options that can
provide guaranteed income payments for life.
Withdrawals of taxable amounts will be subject to ordinary income tax and
possible mandatory federal income tax withholding and, if taken prior to age
59-1/2, a 10% IRS penalty may also apply. Withdrawals affect the variable
annuity's death benefit, cash surrender value and any optional living benefits
and may be subject to surrender charges.
The annual cost of Lifetime Focus is 0.65% (maximum 1.25%) for the single
version, and 0.85% (maximum 1.25%) for the spousal version, of the adjusted
Guaranteed Withdrawal Balance. The adjusted Guaranteed Withdrawal Balance is
the greater of total premium payments made or the Guaranteed Withdrawal
Balance on the day preceding deduction of the rider fee. Depending upon the
performance of the underlying investment options, the selection of a
Lifetime Focus rider may result in higher contract expenses for which no
additional benefit is received.
For GIAC variable annuities, operating expenses for the investment options
ranged from 0.35% to 1.61% for the 2006 fiscal year; actual charges will
depend upon the variable investment options selected. Mortality and expense
risk charges range from 1.00% to 1.55% of the net asset value of the variable
investment options, depending on the variable annuity contract chosen. The
annual administrative expense is 0.20% of the net asset value of the variable
investment options. If the accumulation value in the contract is less than
$100,000 on the contract's anniversary date, there is an annual contract fee
of $35. The maximum potential declining surrender charge is 8%. Surrender
charges are specific to each variable annuity; refer to each variable
annuity's prospectus for more information. Additional charges will apply if
any additional contract riders are selected. Product availability and features
may vary by state. All contract benefits and annuity payment guarantees are
backed solely by the strength and claims-paying ability of GIAC.
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New
York, NY (Guardian) is one of the largest mutual life insurance companies in
the United States. As of December 31, 2006, Guardian and its subsidiaries had
$39.5 billion in assets (on a consolidated statutory basis). With more than
5,000 employees and 3,000 financial representatives, as well as more than 80
agencies nationwide, Guardian and its subsidiaries protect individuals,
businesses, and their employees with life, disability, health, long-term care,
and dental insurance products, and offer 401(k), annuities and other financial
products and trust services. More information about Guardian can be obtained
at: www.GuardianLife.com.
Annuities are issued by The Guardian Insurance & Annuity Company, Inc.
(GIAC), a Delaware corporation, and distributed by Guardian Investor Services
LLC (GIS). GIAC and GIS are located at 7 Hanover Square, NY, NY 10004.
GIAC and GIS are wholly owned subsidiaries of The Guardian Life Insurance
Company of America, New York, NY.
Variable annuities and their underlying investment options are sold by
prospectuses only. Prospectuses contain important information, including fees
and expenses. Please read them carefully before investing or sending money.
You should consider the investment objectives, risks, fees and charges of the
investment company carefully before investing. Prospectuses contain this and
other important information and can be obtained by contacting your financial
professional or calling 800-221-3253.
Variable annuities and their underlying investment options are not
deposits or obligations of, or guaranteed or endorsed by, any bank or
depository institution, nor are they insured by the Federal Deposit Insurance
Corporation (FDIC), The Federal Reserve Board, the National Credit Union
Association (NCUA) or any other agency. They involve investment risk,
including possible loss of the principal amount invested. Investment return
and principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Product and rider availability and features may vary by state.
GIS is a member of FINRA, SIPC.
SOURCE The Guardian Life Insurance Company of America
Stephen Gilmore, Manning Selvage & Lee, +1-212-468-4056,
Stephen.Gilmore@mslpr.com; or Anayo Afolabi, The Guardian Life Insurance
Company of America, +1-212-598-8329, Anayo_Afolabi@glic.com
