2009 Whole Life Competition - The Guardian Advantage

1. 2009 Whole Life Competition - The Guardian Advantage

2. 2009 Whole Life Competition - The Guardian Advantage

3. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 3 Summary of Competitive Points If you are competing Whole Life to Whole Life: Guardian�s 2009 dividend interest rate increased from last year while Northwestern�s rate decreased by 100 bp to 6.5%. Guardian�s policies have lower premiums and higher 20th year IRRs than Northwestern�s products. Guardian�s premiums on 50/50 blends are significantly lower. Guardian offers the most robust product features (riders) that add significant value. There is more to the product than just dividend performance including Waiver of Premium with 5 - Year Own Occupation Definition of Disability Accelerated Benefit Rider for terminal and permanent chronic illness. Guardian�s loan rate is contractually better than Northwestern�s If you are competing Product Portfolio to Product Portfolio Guardian�s offers a Secondary Guarantee Universal Life Guardian�s regular Universal Life has a lower premium to endow. Guardian�s 20�Year Term is more competitive

4. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 4 Northwestern�s performance changes with new products and reduced dividend interest rate Dividend interest decreased from 7.5% to 6.5% The premium decreased by 14%, but the cash value decreased by 20% to 30%.

5. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 5 Know what you are looking to achieve For most competitive benchmarks, Guardian has a product that illustrates competitively. Guardian�s core whole life products each are designed to meet a different need. For example -- L95 for high early cash value, beginning in year 2 and early premium offset. L99 for high 20 year IRR of Cash Value L121 for low base premium and high IRR of Death Benefit

6. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 6 There�s A Product That Will Do the Job

7. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 7 Features add significant value and help avoid commoditizing In addition to Guardian�s strong illustrated values, Guardian�s industry-leading riders add value to the policy: Enhanced Accelerated Benefit Rider covering both chronic and terminal illness Guardian has no cap for terminal illness. NML has a $250,000 cap NML offers no chronic illness benefit Waiver of Premium Rider with 5 Year Own Occupation definition of disability NML�s waiver has a 2 Year Own Occupation definition

8. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 8 Features add significant value and help avoid commoditizing Enhanced Guaranteed Insurability Option (EGIO) � Guardian�s rider gives the insured more opportunities to purchase insurance. Depending on issue age up to 8 option dates available - each to a maximum of $250,000. This benefit can be particularly useful when combined with waiver of premium. Client age 40 could have an additional $1,250,000 of face amount with all premiums waived. Maximum issue age is 50 with last exercise date at age 58. NML�s rider has up to 7 option dates available � to a maximum of $150,000 each. Maximum issue age is 38 with only one exercise date available Client age 40 would not be eligible for this rider. DuoGuard Rider, now offering a variety of options when exercised Powerful planning tool that gives the beneficiary upon the death of the insured, the ability to purchase coverage in the future under 3 scenarios (may be combined): Attained age, Original age or Single premium paid-up (attained age only). Evidence of insurability is required only at the time of issue of the rider (not at time of exercise). NML does not offer this rider

9. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 9 Match NML�s Premium with Guardian�s EPUA Guardian�s L121 premium is 21% lower than NML�s Adjustable Comp Life (Male age 40 best class $1 M) Add EPUA to match NML�s premium Increases Cash Value (both Total Guaranteed Cash Value and Current Cash Value) and Death Benefit Improves IRR of Cash Value Check out FDP/XL�s custom column � IRR on EPUA Cash Value. For this client, with annual EPUA contributions, the IRR on EPUA Cash Value is between 5% and 6% every year beginning in year 8. (Through age 112, based on 2009 dividend scale.)

10. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 10 Add Value with EPUA Rider

11. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 11 EABR Summary

12. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 12 Rider Comparison Summary

13. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 13 Premium Payments Guardian�s lower loads on EPUA payments lead to more cash value immediately for same rider payment Guardian�s load: 5% NML�s load: 9% The difference is $400 on a $10,000 payment Guardian�s lower modal factors lead to lower outlay for the same basic annual premium Guardian�s GOM .085833 NML�s similar option: .086300

14. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 14 Lower cost of borrowing can lead to higher distributions Lower cost of borrowing with Guardian�s whole life policies. Guardian: Loan interest rate is guaranteed to be reduced from 8% to 5% at the later of age 65 or year 21. Loan spread is reduced to 10 basis points in later years. Northwestern Mutual Choose fixed rate of 8% in all years or variable rate. Loan spread is 60 basis points in all years.

15. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 15 Blends of Whole Life and Term Term blends Guardian typically recommends 50/50 blends. Maximum term 90%. NML allows minimum base face amount of $15,000. For the same premium, Guardian can offer a greater percentage of base face amount - more guarantees. Impact on premium if dividend is reduced Guardian � illustration is tested at 100 bp below current rate. No immediate impact on premium unless necessary to pay OYT cost. (OYT costs are guaranteed for two years.) NML � increase in premium may be required at next anniversary.

16. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 16 When in competition� Both companies: Mutual companies operated to benefit policyholders. Excellent historical dividend payments Strong company financials Competitive whole life products What sets Guardian apart? Riders and policy provisions that are guaranteed Higher IRRs on cash value and death benefits in early years

17. Consider That The Market Is Demanding More Choice How do the other Guardian products stack up against Northwestern�s?

18. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 18 Compare 20-Year Term

19. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 19 Compare Universal Life

20. 2009 Whole Life Competition - The Guardian Advantage

21. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 21 Summary of Competitive Points If you are competing Whole Life to Whole Life: Guardian�s 2009 dividend interest rate increased from last year while MassMutual�s rate decreased by 30 bp to 7.6%. For any stated time horizon or competitive benchmark, Guardian has a product that can compete effectively against Mass Mutual. Guardian offers robust product features and riders that add significant value. There is more to the product than just dividend performance. If you are comparing Whole Life policies that include distributions, understand the assumptions used: Guardian�s fixed loan rate is 8% to the later of 20 years or to age 65. After this period, the rate charged on loan is reduced to a fixed rate of 5%. MassMutual gives their policyholders two options for loans: Variable loan interest without Direct Recognition This option is most frequently illustrated and may be subject to a lot of volatility as the company can change both the dividend interest rate and the loan interest rate. Fixed loan interest with Direct Recognition. Residual Cash Value The solve doesn�t tell the whole story. Check how much cash value is left at the end of the distribution period and at age 100

22. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 22 Know what you are looking to achieve For most competitive benchmarks, Guardian has a product that illustrates competitively. L95 for high early cash value, beginning in year 2 and early premium offset. L99 for high 20 year IRR of Cash Value L121 for low base premium and high IRR of Death Benefit Note: Compared Guardian�s three whole life products (L121, L99 & L95 to MassMutual�s Legacy 100.)

23. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 23 There�s A Product That Will Do the Job

24. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 24 Mass Mutual�s dividends have fluctuated more. Compare the trend of actual dividends paid on a $250,000 policy issued to a Male age 45 in 1988. MassMutual�s actual dividend payments have been much more volatile than Guardian�s over the past several years. For MassMutual, in 2 of the past 8 years, the dividend paid was lower than the prior years�. Long-term predictions based on one year�s dividend scale are unlikely to be accurate.

25. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 25 MassMutual�s performance changes with reduced dividend interest rate

26. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 26 Features add significant value andhelp avoid commoditizing In addition to Guardian�s strong illustrated values, Guardian�s industry-leading riders add value to the policy: Enhanced Accelerated Benefit Rider covering both chronic and terminal illness Enhanced Guaranteed Insurability Option (EGIO) � maximum issue age 50 with exercise dates to age 58 DuoGuard Rider, now offering a variety of options when exercised

27. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 27 EPUA Rider ComparisonSummary

28. How do the other Guardian products stack up against MassMutual�s?

29. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 29 Compare Universal Life -- Accumulation

30. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 30 Compare Secondary Guarantee UL

31. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 31 Compare 20-Year Term

32. 2009 Whole Life Competition - The Guardian Advantage

33. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 33 Summary of Competitive Points If you are competing Whole Life to Whole Life: Guardian�s 2009 dividend interest rate increased from last year while NY Life�s rate decreased by 65 bp to 6.14%. Guardian�s L121 has a lower premium and higher death benefit IRRs than NY Life�s products Guardian�s premiums on 50/50 blends are lower. Guardian offers the most robust product features (riders) that add significant value. There is more to the product than just dividend performance. Guardian continues to offer its Expanded Standard Program; NY Life has eliminated table shaving on all life policies. If you are competing Product Portfolio to Product Portfolio Guardian�s Secondary Guarantee UL has lower premiums Guardian�s 20-Year Term is more competitive

34. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 34 NY Life�s Performance Changes with reduced dividend interest rate

35. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 35 Know what you are looking to achieve For most competitive benchmarks, Guardian has a product that illustrates competitively. L95 for high early cash value, beginning in year 2, and early premium offset. L99 for high 20 year IRR of Cash Value L121 for low base premium and high IRR of Death Benefit

36. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 36 There�s A Product That Will Do the Job

37. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 37 Features add significant value and help avoid commoditizing In addition to Guardian�s strong illustrated values, Guardian�s industry-leading riders add value to the policy: Enhanced Accelerated Benefit Rider covering both chronic and terminal illness Waiver of Premium Rider with 5 Year Own Occupation definition of disability Enhanced Guaranteed Insurability Option (EGIO) with maximum issue age 50 Simplified Issue Rider automatically added at no cost. DuoGuard Rider, now offering a variety of options when exercised

38. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 38 EABR Summary

39. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 39 Rider Comparison Summary

40. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 40 NY Life�s Custom Whole Life Clients choose paid- up age at issue. Premium paying period; minimum 5 years; maximum to age 75. Two ways to compete: Emphasize lack of flexibility. Show L99 with EPUA And/or Create a �Life Paid Up @ Any Age� illustration in FDP/XL

41. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 41 Why is flexibility important? With regular whole life, client can continue paying premium in cash for life. Allows clients to increase death benefit to keep up with inflation or to meet greater needs If waiver of premium is on the policy, premiums could be waived for life. Regular compensation on premiums paid by premium offset

42. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 42 Life Paid-Up @ Any Age Use existing products and riders to create a Life Paid-Up @ Any Age EPUA generates guaranteed cash value -- increases the guaranteed Paid-Up Insurance FDP/XL has custom columns to make this concept easy to illustrate: �Guaranteed Face Amount of Paid-Up Insurance� Increase the EPUA contribution until this column exceeds the base face amount in the year desired. Include �Material Change Indicator� to be sure to avoid a MEC

43. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 43 Example: Life Paid-Up @ Age 55

44. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 44 Life Paid Up @ Any Age � more information A paid-up policy is not considered a lapse as long as the base face amount is not decreased. EPUA rider will lead to high early cash value and high early death benefit increases. Note: NY Life�s illustrated values may look better in the later years � so emphasizing flexibility may be the key.

45. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 45 Life Paid-Up @ Any Age using EPUA�s Guarantees 

46. Consider That The Market Is Demanding More Choice How do the other Guardian products stack up against New York Life�s?

47. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 47 Compare 20-Year Term

48. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 48 Universal Life � Secondary Guarantees

49. The Guardian Life Insurance Company of America, 7 Hanover Square, NY, NY 10004 For Producer Use Only � Not for Use with the Public 49 Where to get competition information Life Product and Competition database on Guardian Online (Sales/Competitor information/Life Competitors) Call Life Product Services 800-871-7780 Option 2.