Guardian Investor II SM Variable Annuity Fact Card

Transcription

1 THE GUARDIAN INSURANCE & ANNUITY COMPANY, INC. (GIAC) Guardian Investor II SM Variable Annuity Fact Card A Variable Annuity is a long-term financial product for retirement purposes that allows you to accumulate tax-deferred* savings (during the accumulation period) and then, during the annuity payout period, provides you with the option to start receiving regular payments year after year, for the rest of your life or for a specific period of time. GUARDIAN INVESTOR II SM VARIABLE ANNUITY Investment Minimum / Subsequent Payments Non-qualified contract: $5,000 Qualified contract: $2,000 Contracts with Guaranteed Lifetime Withdrawal Benefit (GLWB) rider: $5,000 Subsequent payments: $100 Account Type Non-Qualified and Qualified (traditional IRA, SIMPLE IRA, defined contribution 401(a), Roth IRA, 401(k), rollover IRA, SEP IRA) Maximum Issue Age Age 85 for owner and annuitant Investment Maximum / Subsequent Payments For contracts without the GLWB: $3 million first-year investment without prior GIAC approval; $500,000 for each subsequent year after the first year. Limited to $100,000 for each subsequent year after age 85. Mortality & Expense Risk Charges B Series: 1.15% annually of the accumulation value of your variable investment options L Series: 1.50% annually of the accumulation value of your variable investment options Annual Contract Fee $35 (may vary by state), waived if on the contract anniversary date the accumulation value is at least $100,000 or if the combined accumulation value of all of your B Series and/or L Series variable annuity contracts equals $100,000 or more. Contingent Deferred Sales Charge (CDSC) B Series: 8%, 7.5%, 6.5%, 5.5%, 5%, 4%, 3%, 0% A declining 7-year surrender charge applicable to each premium payment L Series: 8%, 7.5%, 6.5%, 5.5%, 0% A declining 4-year surrender charge applicable to each premium payment Variable Investment Option (VIO) Expenses Annual gross operating expenses, which include management fees, 12b-1 fees and other expenses associated with the variable investment options, range from 0.37% to 1.35%. Annual net operating expenses after the application of any fee waivers and/or expense reimbursements range from 0.28% to 1.35%. These ranges are based on actual gross and net expenses for the year ended December 31, These expenses may change in the future. Actual charges will depend on the variable investment options you select. Administrative Charges 0.25% annually of the accumulation value of your variable investment options * It should be pointed out that a variable annuity will not give you additional tax benefits if you use it to fund an IRA or qualified retirement plan. Therefore, you should use a variable annuity in such retirement plans only if the insurance benefits (e.g., living benefits, death benefits, income-for-life-payouts) merit the annuity s additional cost.

2 Living Benefit Rider The Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider Available at contract issue only Optional rider that provides you with an opportunity to take guaranteed withdrawal amounts (GWA) each contract year no matter how investment options perform or how long you live. Guardian Target Options: Single 0.95% (1.00% max) of Adjusted GWB Spousal 1.05% (2.00% max) Single 1.05% (2.50% max) of Adjusted GWB Spousal 1.30% (3.50% max) Single 1.15% (2.50% max) of Adjusted GWB Spousal 1.40% (3.50% max) GUARDIAN TARGET NOWSM GUARDIAN TARGET FUTURESM GUARDIAN TARGET 200SM GUARDIAN TARGET 250SM Single 1.30% (2.50% max) of Adjusted GWB Spousal 1.55% (3.50% max) Designed to Serve a Different Time Frame Ideal for an individual or couple who intend to start taking withdrawals immediately or within a few years after purchasing their Guardian Investor Variable II SM Annuity. Designed for an investor who intends to delay taking withdrawals long enough to realize the benefits of the Target Future guarantee, which can keep growing through the 10th contract year regardless of investment performance. (See Important Note below) Designed for an individual or couple who intend to delay taking withdrawals long enough to realize the benefits of the Target 200 guarantees, which can keep growing through the 12th contract year regardless of investment performance. (See Important Note below) Well-suited for an individual or couple who intend to delay taking withdrawals for at least 17 years after purchasing their Guardian Investor Variable II SM Annuity. (See Important Note below) Different Ways to Increase the Guaranteed Withdrawal Balance (GWB) Used to Calculate the Guaranteed Withdrawal Amounts Annual Step-Ups to Contract Value on each annual contract anniversary up to the contract anniversary immediately prior to the oldest owner s 90th birthday if contract value is greater than the guaranteed withdrawal balance (GWB), which initially equals the premiums paid. Annual Step-Ups to Contract Value 7% Annual Minimum Guarantee GWB will increase by a 7% annual minimum guarantee during the first 10 contract years using a basis of premiums paid in the first 90 days of the contract or, if greater, the highest quarterly contract anniversary value up to and including the prior contract anniversary value. Annual Step-Ups to Contract Value 7% Annual Minimum Guarantee 200% Cumulative Guarantee GWB will equal on the 12th contract anniversary 200% multiplied by the premiums paid during the first 90 days of the contract. Annual Step-Ups to Contract Value 7% Annual Minimum Guarantee 200% Cumulative Guarantee 250% Cumulative Guarantee GWB will equal on the 17th contract anniversary 250% multiplied by the premiums paid during the first 90 days of the contract. Important Note If you take more than one withdrawal, even if that withdrawal is for a required minimum distribution (RMD), you will void any further 7% annual minimum guarantees for subsequent contract years. If you take a withdrawal during the first 12 and/or 17 contract years, even if it is for an RMD, you will void the 200% and/or 250% cumulative guarantee benefits. Adjusted GWB The Adjusted GWB equals the greater of 1) the total premium payments to the contract, or 2) the GWB at the end of the day previous to the day on which the rider fee is determined plus any increase resulting from the application of the 7% annual minimum guarantee or the 200% or 250% cumulative guarantees. GIAC reserves the right, at its discretion, to increase the rider fee percentage on the effective date of a step-up (an increase of the GWB to accumulation value) to the maximums shown above. You will receive advance written notice of any rider fee percentage increases when there is an increase to the GWA and will have the right to decline all future step-ups and any rider fee percentage increases. The GWB cannot be withdrawn as a lump sum and it can never exceed $6,000,000.

3 Lifetime Withdrawal Percentage (LWP) The LWP multiplied by the Guaranteed Withdrawal Balance (GWB) equals the Guaranteed Withdrawal Amounts (GWA). The LWP is determined by the version of the rider and the owner s age (or the age of the younger spouse for the spousal version) at the time of the first withdrawal. The LWP age bands and percentages are: Ages 59 & younger Single: 2.5% Spousal: 2.0% Ages Single: 3.5% Spousal: 3.0% Ages Single: 4.5% Spousal: 4.0% Ages 80 & above Single: 5.5% Spousal: 5.0% GLWB Allocation Models Moderate 60/40 Growth 70/30 SMALL CAP MID CAP INTERNATIONAL 7% 8% 9% 36% 40% FIXED INCOME Invests 60% in equities and 40% in fixed income. FIXED INCOME SMALL CAP 30% 9% 9% 11% 41% LARGE CAP Invests 70% in equities and 30% in fixed income. LARGE CAP INTERNATIONAL MID CAP Conservative 40/60 INTERNATIONAL SMALL CAP LARGE CAP MID CAP 4% 5% 7% 24% 60% FIXED INCOME Invests 40% in equities and 60% in fixed income. At a Glance: Annual Step-Ups Step-ups GWB CONTRACT ANNIVERSARIES Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Contract Value Guaranteed Withdrawal Balance (GWB) There is no assurance that investing in any model will increase the contract value of the variable annuity. Investments in each investment option will fluctuate and may be worth more or less than the original investment. GIAC reserves the right to restrict investment options and models at any time. This hypothetical chart is for illustration purposes only. It does not depict actual performance of any Guardian Investor II SM Variable Annuity investment portfolio.

4 At a Glance: The 200% and 250% Cumulative Guarantees Assuming: Premiums paid during the first 90 days of the contract and no withdrawals or step-ups during the first 17 years GWB GWB GWB increased by 7% Annual Minimum Guarantee GWB increased by 7% Annual Minimum Guarantee 200% Cumulative Guarantee increases your GWB by 200% of premiums (paid during the first 90 days of the contract) 200% Cumulative Guarantee increases your GWB by 200% of premiums (paid during the first 90 days of the contract) 250% Cumulative Guarantee (Target 250 only) increases the GWB to 250% of premiums paid during the 250% Cumulative Guarantee first 90 days of the contract (Target 250 only) increases the GWB to 250% of premiums paid during the first 90 days of the contract CONTRACT ANNIVERSARIES 7 CONTRACT ANNIVERSARIES Guaranteed Withdrawal Balance (GWB) The chart above assumes Guaranteed no additional Withdrawal premium Balance after the (GWB) first 90 days of the contract. This hypothetical chart is for illustration purposes only. It does not depict actual performance of any Guardian Investor II SM Variable Annuity investment portfolio. The GWB is only used to calculate the GWA and cannot be surrendered as a cash value. Additional Facts About GLWB Issue Ages for GLWB Contracts Minimum Issue Age: 45. For spousal version, both covered persons must be 45 or older Maximum Issue Age: 80. For spousal version, both covered persons must be 80 or younger Investment Maximums/ Subsequent Payments for GLWB Contracts Guardian Target Now, Guardian Target Future and Guardian Target 200: $3 million first-year investment without prior GIAC approval; $100,000 for each subsequent year after the first contract year Guardian Target 250: $2 million first-year investment without prior GIAC approval; $100,000 for each subsequent year after the first contract year Maximum GWB $6 million for both L & B Series. GLWB Optional Death Benefits Only one death benefit option may be chosen per annuity contract. GLWB Step-Up Death Benefit: Maximum issue age is 80. The annual fee for this death benefit is 0.50% of the adjusted GWB. Death benefit equals total premium payments made to the contract or the highest annual contract anniversary value up to age 90, whichever is greater. Death benefit is reduced dollar-for-dollar for any withdrawals up to the guaranteed withdrawal amounts (GWA) in a contract year. Not available with Guardian Target 250 in New York. GLWB Return of Premium Death Benefit: Maximum issue age is 80 for non-qualified contracts and 65 for qualified contracts. The annual fee for this death benefit is 0.60% of the adjusted GWB. Death benefit applies on and after the first contract anniversary and equals the total premiums paid through the first 90 days of the contract. Death benefit will not be reduced for any withdrawals up to the guaranteed withdrawal amounts (GWA) in a contract year. Not available in the State of New York. Not available with the Guardian Target Now option. If the owner has elected the maximum annuity commencement date of the annuitant s 100th birthday, the GLWB rider death benefits continue to that date unless terminated earlier upon the termination of the GLWB rider. Both GLWB rider death benefits terminate upon the termination of the GLWB rider, which terminates on the earliest of the following: the date GIAC receives due proof in Good Order of the death of the last surviving Covered Person; the date the Basic Contract terminates; the date an annuity payout option under the Basic Contract commences; or the date of an ownership change or assignment under the Basic Contract, unless: the new Owner assumes full ownership of the Basic Contract and is essentially the same person (this includes but is not limited to the change from individual ownership to a revocable trust for the benefit of such individual owner or the change from joint ownership of a legally married couple or civil union to ownership by the surviving spouse/ partner when one of them dies); the assignment is for the purposes of effectuating a 1035 exchange of the Basic Contract; or the date the Accumulation Value of the Basic Contract, the GWB and the GWA, if applicable, all equal zero.

5 Contract Features and Optional Riders The following features and optional riders are available. Death Benefits Standard Death Benefit No additional cost. Equals the greater of the accumulation value less any annuity taxes, or the total amount of premiums paid less an adjusted amount (see below) for each withdrawal and any contingent deferred sales charges thereon and any annuity taxes. Highest Anniversary Value Death Benefit (HAVDB) rider Available at contract issue only. Maximum issue age is 75. Optional rider for an additional annual cost of 0.40% of the accumulation value of your variable investment options. The HAVDB is the greater of (1) The Standard Death Benefit or (2) The highest anniversary value enhanced death benefit (less any annuity taxes), which is an amount equal to the highest accumulation value (adjusted for subsequent premium payments and withdrawals) on any annual contract anniversary date up until the contract anniversary date following the older owner s 80th birthday. The HAVDB will decrease by an adjusted amount (see below) whenever a withdrawal is made under the base contract. If the owner has elected the maximum annuity commencement date of the annuitant s 100th birthday, the death benefit continues to that date unless terminated prior to that date based on the earliest of these items to occur: (i) a death benefit has been paid under the rider or the basic contract: (ii) the contract is annuitized prior to the annuity commencement date; (iii) the contract value is zero; or (iv) an ownership change is made (including spousal continuation) and the new owner is age 76 or older. Not available if you elect the GLWB. Earnings Benefit (EB) rider Available at contract issue only. Maximum issue age is 75. Optional rider for an additional annual cost of 0.25% of the accumulation value of your variable investment options. For contracts issued to owners age 69 and younger, any death benefit payable will increase by 40% of earnings (accumulation value minus premium payments, with premium payments adjusted for withdrawals by the lesser of the amount of the withdrawal or an amount equal to the proportion of the withdrawal to the accumulation value multiplied by the applicable premium payment amount prior to the withdrawal.) For contracts issued to owners age 70 to 75, any death benefit payable will increase by 25% of earnings. The amount of the earnings benefit will never exceed the earnings benefit percentage set forth in the contract multiplied by the adjusted premiums. Not available in the states of New York and Washington and not available with the HAVDB in New Jersey. Not available if you elect the GLWB. Effects of Withdrawals on Standard Death Benefit and HAVDB rider: The adjusted amount for each withdrawal is the greater of (1) the dollar amount of the withdrawal or (2) the amount determined by dividing the amount of each withdrawal plus any CDSC and annuity taxes by the accumulation value of the contract immediately before the withdrawal and multiplying this result by the applicable death benefit immediately before the withdrawal. Annuity Payout Options Available as variable or fixed payout options: Life Annuity without Guaranteed Period, Life Annuity with Guaranteed Period, Joint and Survivor Annuity, Joint and Survivor with Guaranteed Period, Annuity Payments to Age 100. Available as fixed payout options only: Payments for a Period Certain and 10-Year Guaranteed Period. (Availability may vary by state.) Accessing the Accumulation Value Free Withdrawal Amount: Each contract year, you can access up to 10% of your chargeable premium (each net premium that is subject to a CDSC, less the amount of any withdrawal attributable to that premium on which GIAC assessed a CDSC) minus the aggregate amount of all prior free withdrawals made during the current contract year. Withdrawal Options: Periodic withdrawals or systematic withdrawals on a monthly, quarterly, semi-annual or annual basis are permitted. Withdrawals will reduce the annuity s contract value, death benefit, annuity payout and any living benefits. Withdrawals of taxable amounts will be subject to ordinary income tax and possible mandatory federal income tax withholding and, if taken prior to age 59½, a 10% federal tax penalty may also apply. Adverse Effects of an Excess Withdrawal An excess withdrawal is any withdrawal that causes the total withdrawals during a contract year to be more than the guaranteed withdrawal amount (GWA). An excess withdrawal will: Reduce the GWB to the lesser of the contract value immediately after the withdrawal or the GWB reduced by the amount of the withdrawal; Cause the GWA to be recalculated to equal the LWP multiplied by the GWB immediately after the excess withdrawal (as described in the point above); Reduce the amount (basis) that is multiplied by 7% to calculate the 7% annual minimum guarantee increase to the GWB so that this basis will equal the lesser of the contract value immediately after the withdrawal or the current basis reduced by the amount of the withdrawal; Reduce the GLWB Step-Up Death Benefit (if applicable) to the lesser of the contract value immediately after the withdrawal or the death benefit reduced by the amount of the withdrawal; and Reduce the GLWB Return of Premium Death Benefit (if applicable) to the lesser of the GWB immediately after the excess withdrawal (as described in the first point) or the death benefit reduced by the amount of the withdrawal.

6 IMPORTANT CONSIDERATIONS ABOUT VARIABLE ANNUITIES This material is for informational use only. It should not be relied on as the basis to purchase a variable annuity or implement a retirement strategy. This brochure must be preceded or accompanied by a current contract prospectus for the Guardian Investor II SM Variable Annuity. Variable annuities are long-term investment vehicles that involve certain risks, including possible loss of the principal amount invested. The investment return and principal value may fluctuate so that the investment, when redeemed, may be worth more or less than original cost. Withdrawals of taxable amounts will be subject to ordinary income tax and possible mandatory federal income tax withholding. If taken prior to age 59½, a 10% IRS penalty may also apply. Withdrawals affect the variable annuity s death benefit, cash surrender value and any living benefit and may also be subject to a contingent deferred sales charge. Variable annuities and their underlying variable investment options are sold by prospectus only. Prospectuses contain important information, including fees and expenses. Please read the prospectus carefully before investing or sending money. You should consider the investment objectives, risks, fees and charges of the investment company carefully before investing. The prospectus contains this and other important information. A prospectus may be obtained from your investment professional or by calling To download a fund or contract prospectus, please visit The Guardian Investor II SM Variable Annuity currently consists of the B Series and L Series options. All guarantees are backed exclusively by the strength and claims-paying ability of The Guardian Insurance & Annuity Company, Inc. (GIAC). Individual variable annuities are issued by GIAC, a Delaware corporation, and distributed by Park Avenue Securities LLC (PAS). GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a wholly owned subsidiary of GIAC. Guardian, GIAC and PAS are located at 7 Hanover Square, New York, NY PAS is a member: FINRA, SIPC Not a Deposit Not FDIC or NCUA Insured May Lose Value No Bank or Credit Union Guarantee The Guardian Insurance & Annuity Company, Inc. 7 Hanover Square New York, NY EB (08/15) (Exp. 08/15)