Money Stages of Whole Life Your Freedom Guaranteed

Money Stages of Whole Life Your Freedom Guaranteed A Consumer Guide for Illustration Understanding Using Guardian Whole Life Paid-Up at Age 121

Whole Life Insurance Permanent life insurance is designed to protect, grow and accumulate value throughout your lifetime. By keeping your policy in force with the required premium payments, you can depend on the valuable guarantees that help you achieve financial 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. A Personal Illustration Can Provide a Long-term View Your Guardian financial professional will prepare and deliver a customized illustration based on your goals. We urge you to evaluate all 6 Money Stages of Whole Life Insurance within the context of your personal illustration, and with the help of your financial professional.

Owning life insurance means much more than paying a premium and receiving a death benefit it s 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. Over time, Guardian s policies develop both guaranteed and nonguaranteed cash values and features, and an illustration can help you understand the important difference between these. 1 Guaranteed values are stated in the contract, but because of careful expense management, claims experience, and investment performance, Guardian has consistently been able to provide extra benefits through dividends. 2 Non-guaranteed values, such as dividends, will probably change going both up and down once the policy is in force, to reflect the policy s actual experience in the future. No company can accurately predict the future, so illustrations cannot be relied on to estimate future costs or benefits. Illustrations help show how Guardian s policies may work over a lifetime, assuming a scenario in which Guardian continues to charge and credit the way it currently does for hundreds of thousands of actual policies. Whole Life Illustration The illustration on the next page is an example of the kind of information contained in the concept illustration. The various sections show the following: Your age as of your nearest birthday. On this sample, the age is shown as 40. 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 benefit amount, including the basic face amount of insurance, plus any amounts covered by optional riders. 3 The risk class is shown as Preferred Non Tobacco. The benefit is a $500,000 face amount. The plan of insurance plus any optional riders. The annual premium, including the basic policy premium plus outlays for any riders chosen. The dividend option 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 enhance coverage or reduce outlay. Some of the options are to: Receive dividends in cash or offset part or all of the premium; Reinvest dividends to automatically purchase more life insurance coverage, called Paid Up Additions. Across the Columns Across a typical illustration from left to right, there are a number of columns that reflect information that you should consider: 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-toyear Base Guaranteed Cash Value increase. Annual Dividend* The Annual Dividend payable at the beginning of each year, assuming the dividend scale currently paid by Guardian never changes. Dividends tend to change The plan of insurance is Whole Life Paid-Up at 121, a whole life policy with level annual premiums payable through age 120. (Life Paid-Up at 121 form #14-L121) The premium is $6,258. The premium may be paid in several ways, including a single sum at the start of the year or quarterly installments. The dividend option is shown as Paid Up Additions. 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, 4 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. * Any column marked with an asterisk is dependent upon dividends. Values reflect the illustration s assumptions and indefinite continuation of the 2015 dividend scale. Dividends are declared annually by the Board of Directors and are not guaranteed. If the premium is paid out of pocket each year, it is guaranteed. If the premium is paid internally (premium offset), it is not guaranteed and is dependent on the non-guaranteed dividend. 1 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. 2 Dividends are not guaranteed. They are declared annually by Guardian s Board of Directors. 3 Riders may incur additional costs. 4 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.

Guardian Whole Life Paid-up at Age 121 Life Insurance Illustration Custom Planning Concept Based on the 2015 Dividend Scale Age: 40 Preferred NT Benefit Premium $500,000 Whole Life 121 $6,258.00 Total First Year Premium $6,258.00 Dividend Option: Paid Up Additions (D) POL. YR. AGE AT START OF YEAR GUARAN- TEED PREMIUM # BASE GUAR. CASH VALUE ## INCREASE IN BASE GUAR. CASH VALUE ## ANNUAL DIVIDEND # * PREMIUM # * CUMULATIVE PREMIUM # * CASH VALUE ## * INCREASE IN CASH VALUE ##* DEATH BENEFIT ## * 1 40 6,258 - - - 6,258 6,258 - - 500,000 2 41 6,258 - - - 6,258 12,515 100 100 500,100 3 42 6,258 4,655 4,655 100 6,258 18,773 4,860 4,760 500,499 4 43 6,258 10,745 6,090 101 6,258 25,030 11,059 6,199 500,888 5 44 6,258 16,993 6,248 102 6,258 31,288 17,443 6,384 501,291 6 45 6,258 23,408 6,415 126 6,258 37,545 24,067 6,624 501,805 7 46 6,258 29,993 6,585 193 6,258 43,803 30,979 6,913 502,568 8 47 6,258 36,738 6,745 305 6,258 50,060 38,169 7,190 503,676 9 48 6,258 43,680 6,943 412 6,258 56,318 45,690 7,521 505,113 10 49 6,258 50,813 7,133 530 6,258 62,575 53,524 7,835 506,867 11 50 6,258 58,133 7,320 635 6,258 68,833 61,707 8,184 508,917 12 51 6,258 65,628 7,495 774 6,258 75,090 70,295 8,588 511,380 13 52 6,258 73,278 7,650 976 6,258 81,348 79,295 9,000 514,367 14 53 6,258 81,078 7,800 1,199 6,258 87,605 88,720 9,426 517,894 15 54 6,258 89,018 7,940 1,434 6,258 93,863 98588 9,868 521,964 16 55 6,258 97,075 8,058 1,687 6,258 100,120 108,894 10,306 526,586 17 56 6,258 105,255 8,180 1,952 6,258 106,378 119,664 10,770 531,753 18 57 6,258 113,548 8,293 2,230 6,258 112,635 130,904 11,241 537,459 19 58 6,258 121,988 8,440 2,516 6,258 118,893 142,662 11,758 543,684 20 59 6,258 130,583 8,595 2,803 6,258 125,150 154,950 12,288 550,396 21 60 6,258 139,315 8,733 3,087-125,150 161,249 6,299 543,566 22 61 6,258 148,158 8,843 3,300-125,150 167,814 6,566 537,419 23 62 6,258 157,090 8,933 3,534-125,150 174,644 6,830 531,951 24 63 6,258 166,095 9,005 3,780-125,150 181,742 7,098 527,154 25 64 6,258 175,180 9,085 4,041-125,150 189,122 7,380 523,008 26 65 6,258 184,340 9,160 4,300-125,150 196,744 7,622 519,435 27 66 6,258 193,593 9,253 4,516-125,150 204,626 7,882 516,359 28 67 6,258 202,950 9,358 4,727-125,150 212,783 8,157 513,751 29 68 6,258 212,403 9,453 4,935-125,150 221,218 8,435 511,593 30 69 6,258 221,970 9,568 5,150-229,955 8,737 509,868 125,150 31 70 6,258 231,613 9,643 5,362-125,150 238,976 9,021 508,572 32 71 6,258 241,310 9,698 5,593-125,150 248,287 9,312 507,719 33 72 6,258 250,985 9,675 5,845-125,150 257,860 9,573 507,343 34 73 6,258 260,640 9,655 6,138-125,150 267,698 9,839 507,443 35 74 6,258 270,288 9,648 6,427-277,826 10,128 507,999 125,150 36 75 6,258 279,910 9,623 6,720-125,150 288,242 10,415 509,004 37 76 6,258 289,508 9,598 7,022-125,150 298,954 10,712 510,446 38 77 6,258 299,045 9,538 7,328-125,150 309,957 11,004 512,334 39 78 6,258 308,480 9,435 7,658-125,150 321,237 11,279 514,681 40 79 6,258 317,775 9,295 8,008-125,150 332,782 11,546 517,500 This is a supplemental illustration and is not valid unless accompanied by the complete underlying basic life insurance illustration. This supplemental illustration shows a continuation of currently illustrated non-guaranteed elements, such as dividends, and is neither an estimate nor a guarantee of future performance. Actual non-guaranteed values may change, and be more or less favorable than those shown. Please refer to the basic illustration for guaranteed values and other important information. # This symbol indicates values shown are Beginning-of-Year. ## This symbol indicates values shown are End-of-Year.

The Money Stages of Whole Life Insurance Six ways a whole life insurance policy can keep changing for the better, the longer you own it. 1. First Policy Dividend* Dividends are credited at policy anniversaries. If dividends are not withdrawn in cash, they compound along with other cash values, accelerating the growth of cash value in your policy. Example: In this sample illustration, the first annual dividend is $100, credited at the start of Year 3. Positive Net Cash Flow* In early years, premium payments will exceed cash value growth. Stage 2 begins in the 2. year that the policy turns net cash positive meaning that the increase in Net Cash Value (including dividends) will exceed the premium outlay. Example: Stage 2 occurs in Year 5, when the Increase in Net Cash Value of $6,384 exceeds the Net Premium of $6,258. Under current tax law, this annual accumulation is tax-deferred. Positive Base Guaranteed Cash Flow Even if Guardian never credits a dividend, in most policies the guaranteed 3. cash value increase will grow to exceed the guaranteed premium. Stage 3 represents the year in which the annual increase in Guaranteed Cash Value exceeds the Net Premium. Example: Stage 3 occurs in Year 6, when the increase in Base Guaranteed Cash Value of $6,415 exceeds the Net Premium of $6,258. Net Cash Value Exceeds Cumulative Premium* Stage 4 begins when Total Cash Value (including dividends) 4. exceeds Cumulative Net Premium the policy has more cash value than you paid in premiums. Example: Stage 4 occurs in Year 14, when Net Cash Value of $88,720 exceeds Cumulative Net Premium of $87,605. This gain is tax-deferred. Guaranteed Cash Value Exceeds Cumulative Premium Stage 5 represents the point at which Guaranteed Cash 5. Value exceeds Cumulative Net Premium. Example: Stage 5 occurs in Year 18, when Base Guaranteed Cash Value of $113,548 exceeds Cumulative Net Premium of $112,635. Self-Supporting Policy* Once you reach Stage 6, there may be enough dividend value built up so that the policy 6. 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 21, the illustration shows no further cash payments, yet the policy continues to support itself. Some Other Great Things about Life Insurance in General and Guardian Whole Life in Particular Death Benefits Life insurance proceeds payable to a named beneficiary will not be included in the probate estate. The services of a lawyer are not necessary to collect or distribute life insurance proceeds. Interest is paid on life insurance proceeds from the date of the insured s death until the date payment is made (subject to current income tax). The entire death benefit can be paid in as little as a week following proof of the insured s death. Life insurance proceeds can also be paid out with interest over a specified period, helping to ensure that financial obligations may be fulfilled over the long term. 5 Living Benefits Every whole life policy can be converted into an annuity. Under the terms of an optional rider, if the insured becomes terminally ill (less than 12 months to live), part of the death benefit can be paid while the insured is still living. The same optional rider may pay part of the death benefit while the insured is still living if the insured becomes chronically ill and needs permanent assistance with two or more activities of daily living. (Not available in all states.) 6 Under terms of the optional Disability Waiver, if the insured becomes disabled, premiums will be waived and the policy will continue to perform as if premiums were being paid. 5 Interest is subject to taxes. Guardian, its subsidiaries, agents or employees do not give tax or legal advice. 6 The cash surrender value, loan value, and death proceeds payable will be reduced by any lien outstanding due to the repayment of an accelerated benefit under this rider. The accelerated benefits in the first year reflect deduction of a one-time $250 administrative fee, indexed at an inflation rate of 3% per year to the rate of acceleration. Please see state-specific EABR Disclosure form (01-ABR-1) for complete details about the rider. 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 2015 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 the interest earned on the existing cash value.

Rider Form Nos. 01-R111, 01-R2. Policy Form No. 14-L121 Pub 3957 (03/15) 2015-3143 (Exp. 03/17) The Guardian Life Insurance Company of America 7 Hanover Square New York, NY 10004-4025 www.guardianlife.com