Joshi, Sarika

Guardian Life Insurance Illustration Narrative Summary

Interest on policy loans is payable in advance. Initially, this policy provides for a fixed loan interest rate of 6.00%. Then, the owner will have a one time ability to elect to change the loan interest rate to a variable loan interest rate. This election can only be made during the Election Period described in the policy. If the election to change to a variable loan interest rate is not exercised, the policy will continue to use the 6.00% fixed loan interest rate for 27 years at which time the fixed loan interest rate will decrease to 4.00%. If the variable loan interest rate is elected, the interest rate charged on all loan balances may change for your policy as often as annually, and as described in the policy. The maximum loan interest rate will never exceed the greater of 4.50% or the Moody's Corporate Bond Yield Average Index. Guardian may declare a rate that is less than the guaranteed maximum loan interest rate at its sole discretion. When a fixed loan interest rate is used in this policy, any dividends can be affected by policy loans. When a variable loan interest rate is used in this policy, any dividends will not be affected by policy loans. The cost of this policy over a period of years cannot be determined without taking into account the interest that would have been earned on the premiums if they had been invested rather than paid to Guardian. This policy as shown on the Planning Concept report will not become a Modified Endowment Contract (MEC). The term MEC is designated under federal tax law. If a policy becomes a MEC, surrenders, withdrawals, loans and collateral assignments will be taxed less favorably than for non- MEC. Life insurance contract death benefits are generally excludable from the income of the recipient. However, if the policy is considered "Employer Owned Life Insurance" (EOLI) under the Internal Revenue Code, the benefit may be considered taxable. Under certain circumstances, this tax treatment applies to individually owned policies as well as employer owned policies. Your agent can provide you with the form EOLINOTICE101J0809 Notice & Consent for Employer Owned Life Insurance. Contact your tax advisor for details about complying with the regulation. It may violate federal law to use policies whose rates vary by gender in qualified plans. The Planning Concept report shows the results using the current dividend scale to reduce the required number of cash premiums. The owner may have to pay premiums for a longer period or resume them at a later date. This could occur when actual future dividends are lower than those in the illustration or if the owner does not make the outlays illustrated. Since dividends can be affected by Policy Loans, any borrowing could also result in the need for additional premium payments. This illustration may include the Total Guaranteed Cash Value or Guaranteed Face Amount of Paid Up Insurance columns. If so, a positive value is shown in those columns only with certain dividend options and if the following conditions are met: there is an illustrated Paid Up Additions Rider; there are no policy loans; and the illustrated outlay is sufficient to maintain the base policy benefits and Target Additional Benefit on a guaranteed basis. Otherwise the symbol && is shown. The currently declared variable loan interest rate is 4.50%. 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.

The tax bracket is assumed to be 28% for all years.

August 28, 2019 ID:6692/Case ID:12734233

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