An Illustration Guide to Guardian’s Whole Life Paid-Up at Age 65

LIFETIME PROTECTION. A LIFETIME OF VALUE.EXPLAINING THE MONEY STAGES OF WHOLE LIFE

Whole Life Insurance

Whole life insurance is designed to protect, grow and accumulate value throughout your lifetime. You can depend on the valuable guarantees that this asset provides — helping you achieve f inancial independence.

Lifetime protection is a special advantage of whole life insurance. But it isn’t the only benefit. In fact, a whole life insurance policy can keep changing for the better, with more benefits built into its structure the longer it stays in force.

Whole Life Can Also Be a Great Gift — for a Lifetime!New baby? Birthday? Graduation?How about giving the gift of life insurance? Guardian’s whole life not only provides guaranteed protection, but it can accumulate funds to help offset any number of future financial obligations. What other gift can offer the following long-term benefits:

• Tax-advantaged accessible cash accumulations and income tax-free death benefit

• Guaranteed level premiums

• Many policies can be paid up in advance of a cash accumulation goal, while still continuing to increase in value over a lifetime

• Guaranteed values not affected by market fluctuations*

• Locks in insurability now

A Personal Illustration Can Provide a Long-term ViewYour Guardian financial professional will prepare and deliver a customized illustration based on your goals. We urge you to evaluate all six Money Stages of Whole Life Insurance shown in this brochure when reviewing your illustration, within the context of your personal situation, and with the help of your financial professional.

* All 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.

Owning whole life insurance means having a very flexible financial tool that develops significant value and usefulness over time. Because life insurance policies aren’t static,

illustrations are helpful in explaining key features and benefits of a policy over many years.

• Policy Year – The number of years the policy is in force, starting from the first year.

• Age at Start of Year – The insured person’s age at the beginning of each Policy Year. The insurance age is as of the nearest birthday.

• Base Policy Annual Premium – The cost of the coverage each Policy Year, not including any added riders. This may be paid via cash payment or by policy loans and surrendering the policy’s paid-up additions, if available.

• Base Guaranteed Cash Value – If the annual premium is paid every year, this is the minimum cash value at the end of each year.

• Increase in Base Guaranteed Cash Value – The year-to-year Base Guaranteed Cash Value increase.

• Annual Dividend*2 – The Annual Dividend payable at the end of each year, assuming the dividend scale currently paid by Guardian never changes. Dividends probably will change every year to reflect Guardian’s investment experience, claims paid, expenses and other factors. If you pay less premium in cash or take policy loans, your dividends would be different than shown.

• Net Premium* – The cash payment for the annual premium for the base policy and any riders at the beginning of the year.

• Cumulative Net Premium* – The sum of this year’s Net Premium plus Net Premiums in all prior years.

• Net Cash Value* – The cash value payable if you surrendered the insurance at the end of any policy year. It includes guaranteed and non-guaranteed cash values.

• Increase in Net Cash Value* – The year-to-year Net Cash Value increase.

• Net Death Benefit* – The end-of-the-year guaranteed base policy death benefit plus the life insurance amount provided by dividend additions and any riders.

Whole Life IllustrationThe illustration on the next page is an example of the kind of information contained in the concept illustration. The various sections show the following:

Across the ColumnsAcross a typical illustration from left to right, there are a number of columns that reflect information that you should consider:

* Any column marked with an asterisk is dependent upon dividends. Values reflect the illustration’s assumptions and indefinite continuation of the 2017 dividend scale. If the premium is paid internally (premium offset), it is not guaranteed and is dependent on the non-guaranteed dividend.

• Insured age as of your nearest birthday. On this sample, the age is shown as 2.

• An assumed risk class for which you may qualify, based on your health, medical history and other factors. The risk class will be determined after you apply for the policy and may be different than illustrated here. This class affects the cost of your life insurance protection, and your agent may give you a new illustration after the policy is issued.

The risk class is shown as Non-Smoker.

• The benefit amount, including the basic face amount of insurance, plus any amounts covered by optional riders.1

The benefit is a $4,000,000 face amount.

• The plan of insurance plus any optional riders. The plan of insurance is Life Paid-Up at 65, a whole life policy with level annual premiums payable through age 65. (Life Paid-Up at 65 Form #10-L65).

• Optional riders. Enhanced Guaranteed Insurability Option. This rider allows the policy owner to purchase additional insurance on the insured’s life without evidence of insurability on each option date. For this sample, option dates are insured’s ages 25, 28, 31, 34, 37, 40, 43, and 46. An alternate option date may be used in place of the next scheduled option date for the following events in the life of the insured: marriage, birth/adoption of child/grandchild, purchase of a new home, enrollment of a child in college, and salary increase of 20% or more.

Enhanced Paid-Up Additions (EPUA) Rider. This rider gives the policy owner the right to purchase paid-up additional participating insurance on the insured’s life in addition to the base face amount. These additions have their own cash value, which is included in both the total cash surrender value and the loan value. Additions purchased under the terms of the EPUA Rider enhance the policy’s total cash value and death benefits. The EPUA Rider earns its own dividends, which can further enhance the policy values.

• The annual premium, including the basic policy premium plus outlays for any riders chosen.

The premium is $28,000. The premium may be paid in several ways, including a single sum at the start of the year or quarterly installments.

• The dividend option, which is the method selected for applying the dividends that Guardian credits. Policyholders share in the company’s profits through annual dividends (if declared) that can be used to increase cash value, enhance legacy value or reduce net after-tax outlay.

Some of the options are to:- Receive dividends in cash or reduce part or all of the premium;- Reinvest dividends to automatically purchase more life insurance

coverage, called “Paid-Up Additions.”

The dividend option is shown as “Paid Up Additions.”

Benefit

$4,000,000 Whole Life L65$21,330.00

Enhanced Paid-Up Additions Rider: $6,607.50 Enhanced Guaranteed Insurability Option: $62.50

$28,000.00

Age: 2 Non-Smoker

Dividend Option: Paid Up Additions (D)

Premium

Total First Year Premium

# This symbol indicates values shown are Beginning-of-Year.## This symbol indicates values shown are End-of-Year.

L65, $4,000,000 Face AmountMale/Female Blend Age 2, Non-Smoker Class

2017 Dividend Scale Not Guaranteed

POL.YR.

AGEAT START

OFYEAR

#

GUARAN-TEED

PREMIUM #

END OF YR DIVIDEND

# *

ANNUAL LOAN

#

CUMULA-TIVE

LOAN #

NET AFTER

TAX OUTLAY

# *

POLICYCOSTBASIS

##

INCREASE IN NET CASH

VALUE ##*

NET CASH

VALUE ## *

NET DEATH

BENEFIT ## *

1 2 21,330 - - - 28,000 28,000 6,499 6,499 4,103,853 2 3 21,330 5,420 - - 28,000 56,000 22,985 29,483 4,209,588 3 4 21,330 5,480 - - 28,000 84,000 24,064 53,547 4,387,465 4 5 21,330 5,512 - - 28,000 112,000 25,051 78,598 4,559,891 5 6 21,330 5,621 - - 28,000 140,000 26,123 104,721 4,726,651 6 7 21,330 5,731 - - 28,000 168,000 27,193 131,914 4,888,832 7 8 21,330 5,867 - - 28,000 196,000 28,352 160,266 5,046,623 8 9 21,330 6,015 - - 28,000 224,000 29,593 189,858 5,200,453 9 10 21,330 6,175 - - 28,000 252,000 30,887 220,745 5,350,485 10 11 21,330 6,418 - - 28,000 280,000 32,197 252,942 5,497,062 11 12 21,330 7,473 - - 28,000 308,000 34,277 287,218 5,641,893 12 13 21,330 8,611 - - 28,000 336,000 36,475 323,693 5,793,104 13 14 21,330 9,711 - - 28,000 364,000 38,711 362,404 5,950,807 14 15 21,330 10,784 - - 28,000 392,000 40,817 403,220 6,114,099 15 16 21,330 11,989 - - 28,000 420,000 43,109 446,329 6,282,251 16 17 21,330 13,048 - - - 420,000 16,754 463,083 6,195,025

18 19 21,330 15,128 - - (31,000) 389,000 (12,173) 469,195 5,785,569 19 20 21,330 16,103 - - (31,000) 358,000 (11,523) 457,673 5,470,896 20 21 21,330 17,004 - - (31,000) 327,000 (10,885) 446,788 5,174,729 21 22 21,330 18,000 - - (31,000) 296,000 (10,986) 435,803 4,895,809

39 40 21,330 30,834 - - (264,084) 31,916 (215,991) 885,258 4,204,022

65 66 - 35,073 135,200 135,200 (130,000) 31,916 (23,000) 2,931,114 5,489,500 66 67 - 35,589 140,608 275,808 (130,000) 31,916 (26,063) 2,905,050 5,413,782 67 68 - 36,045 146,233 422,041 (130,000) 31,916 (29,507) 2,875,544 5,331,669 68 69 - 36,529 152,082 574,122 (130,000) 31,916 (33,000) 2,842,544 5,242,934 69 70 - 37,040 158,165 732,287 (130,000) 31,916 (36,981) 2,805,563 5,147,418 70 71 - 37,608 164,492 896,778 (130,000) 31,916 (41,317) 2,764,246 5,044,972 71 72 - 38,319 171,071 1,067,850 (130,000) 31,916 (46,523) 2,717,723 4,935,544 72 73 - 38,978 177,914 1,245,764 (130,000) 31,916 (51,844) 2,665,880 4,818,914 73 74 - 39,582 185,031 1,430,794 (130,000) 31,916 (57,599) 2,608,281 4,694,747 74 75 - 40,155 192,432 1,623,226 (130,000) 31,916 (63,646) 2,544,635 4,562,716 75 76 - 40,700 200,129 1,823,355 (130,000) 31,916 (70,151) 2,474,485 4,422,498 76 77 - 41,276 208,134 2,031,489 (130,000) 31,916 (77,192) 2,397,293 4,273,827 77 78 - 41,916 216,460 2,247,949 (130,000) 31,916 (84,908) 2,312,385 4,116,482 78 79 - 42,624 225,118 2,473,067 (130,000) 31,916 (93,194) 2,219,191 3,950,247 79 80 - 43,179 234,123 2,707,189 (130,000) 31,916 (102,105) 2,117,086 3,774,674 80 81 - 44,034 243,488 2,950,677 (130,000) 31,916 (112,453) 2,004,634 3,589,674 81 82 - 44,607 253,227 3,203,904 (130,000) 31,916 (123,412) 1,881,223 3,394,743 82 83 - 45,020 263,357 3,467,260 (130,000) 31,916 (134,503) 1,746,720 3,189,275 83 84 - 45,400 273,891 3,741,150 (130,000) 31,916 (146,244) 1,600,476 2,972,822 84 85 - 45,646 284,846 4,025,997 (130,000) 31,916 (158,989) 1,441,487 2,744,859

2017 Dividend Scale Not Guaranteed. Male/Female Blend age 2, non-smoker class. L65, $4,000,000 Face Amount.

The Money Stages of Whole Life InsuranceSix ways a whole life insurance policy can keep changing for the better, the longer you own it.

1. Maximum Annual Gift Tax Exclusion – Every person can give away a tax-free gift up to, or equal to, the IRS-mandated annual exclusion amount ($14,000 in 2017) to any number of people each year. The annual exclusion amount is only available if the gift is of a “present interest.” A “present interest” gift is a gift with no strings attached so that the person receiving the gift has control over the money or property received. A married couple can make a joint gift of $28,000 to each donee.

Example: In this case, a married couple would gift the annual premium of $28,000 to the policy owner.

2. Self-Supporting Policy* – Once you reach Stage 2, there may be enough dividend value built up so that the policy can become self-supporting. At that time, future premiums can be paid as they fall due with annual dividends and previously earned dividends.

Example: Starting in Year 16, the illustration shows no further cash payments; yet the policy continues to grow. The policy is guaranteed fully paid up at insured’s age 65.

3. Distribution for Higher Education – At Stage 3, there is a tax-free cash withdrawal from policy to cover higher education expenses from ages 19-22.

Example: In this case, $31,000 is being withdrawn annually for 4 years.

4. Recovery of Cost Basis – In Stage 4, cash value is withdrawn up to cost basis. This lump sum could be used to finance a new home purchase, fund a business venture, or to satisfy any number of financial needs.

Example: In our sample case, $264,084 is being withdrawn free of income tax at age 40, bringing the cost basis down to zero.

5. Retirement Distributions – At Stage 5, tax-free loans are taken to supplement the insured’s retirement for a 20-year period.Example: In this illustration, $130,000 is borrowed annually from ages 66-85.

6. Residual Death Benefit – After all distributions have been taken, there is still a substantial amount of death benefit remaining for heirs.

Example: On the sample illustration, there is over $2.74M of death benefit remaining at age 86 after distributions have been taken.

Top Reasons to Gift Life Insurance to a Child1. A participating whole life insurance policy is designed to grow in value over the long term through the accumulation

of guaranteed cash values and dividends, as long as the required premiums are paid and the policy has no loans, loan interest, or withdrawals.

2. Provides a future cash resource for things such as college tuition payments, seed money for a new business, supplemental retirement income, or a down payment for a new home.*

3. Gifting life insurance is an intelligent strategy in estate planning.4. Establishes a financial foundation that will endure.5. Leverages dollars to provide a significant legacy for a child’s future use. (The child may assume payment of the policy in

the future as an adult — to further enhance death benefit and cash value growth.)

Interest is subject to taxes. 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 example shown is based on a hypothetical policy not available for sale, using Guardian’s Life Paid-Up at 65 and averaging male and female values for issue age 2.

Keep in mind that the accompanying summary illustration is designed to explain basic contract mechanics and is not a complete illustration. A complete illustration must be reviewed before purchasing any life insurance contract. Values are based on the 2017 dividend scale. The stages described do not take into account the time value of money. The cash value increases are a result of both the premium payments and dividends on the existing cash value.

* 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 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 age 59½, any taxable withdrawal is also subject to a 10% tax penalty.

The Guardian Life Insurance Company of America 7 Hanover Square New York, NY 10004-4025 www.GuardianLife.com

®

Rider Form Nos. 14-IPUA, 06-R31 Policy Form No. 12-L65

PUB6200 (01/17) 2017-33104 (Exp. 01/19)

1 Riders may have an additional premium or cost. Riders may not be available in all states. 2 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.