DISCLAIMER

This material contains the current opinions of the Truvium Financial Group but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

 

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.

 

Books mentioned: These materials have not been endorsed by Guardian, its subsidiaries, agents, or employees. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness, or reliability of the information contained herein. In addition, the content does not necessarily represent the opinions of Guardian, its subsidiaries, agents, or employees.

 

Real Estate mentioned: Guardian and its subsidiaries do not endorse or issue have any direct or indirect responsibility with respect to this activity; and its products.

 

The Living Balance Sheet® (LBS) and the LBS Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. © Copyright 2005-2015 The Guardian Life Insurance Company of America.

 

Reverse mortgages may not be used for the purchase of securities or insurance products. Neither Guardian nor its subsidiaries issue nor service reverse mortgages.

 

Past performance is not a guarantee of future results. All investments contain risk and may lose value. Equities may decline in value due to both real and perceived general market, economic, and industry conditions.

 

Investors should consider the investment objectives, risks, charges, and expenses of 529 plans carefully before purchasing. More information about 529 plans can be found in the issuer’s official statement. Please read the official statement carefully before investing.

 

Withdrawals from Individual Retirement Accounts is subject to ordinary income tax treatment and if made prior to age 59 ½ may be subject to an additional 10% federal income tax penalty.  Investments which fund IRAs are subject to market risk including loss of principal

 

Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.  Please be advised that this materials is not intended as legal or tax advice. Accordingly, any tax information provided in this material is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transactions(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent advisor.

 

Whole life insurance is intended to provide death benefit protection for an individual’s entire life. Guarantees are based on the payment of required premiums and the claims paying ability of the issuer. Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.  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.

 

Policy 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.
Whole life riders may incur either an additional premium or cost.  Riders may not be available in all states.
A Waiver of Premium rider waives the obligation for the policyholder to pay further premiums should he or she become totally disabled continuously for at least six months. This rider will incur an additional cost. See policy contract for additional details and requirements.

 

The premium offset year is not guaranteed and relies on dividends and the surrender of paid-up additions to pay the policy’s required premium. There is no guarantee that dividends will be paid or that paid-up additions will exist in the policy.

 

Paid-up Additions (PUA) are purchases of additional insurance (death benefit) that have a cash value.  These purchases are made with dividends and/or a rider that allows the policyholder to pay an additional premium over and above the base premium.  This creates the growth of death benefit and cash values in a participating whole life policy. Adding large amounts of paid-up additions may create a Modified Endowment Contract (MEC).  A MEC is a type of life insurance contract that is subject to last-in-first-out (LIFO) ordinary income tax treatment, similar to distributions from an annuity. The distribution may also be subject to a 10% federal tax penalty on the gain portion of the policy if the owner is under age 59 ½. The death benefit is generally income tax free.