Do You Know the Whole Life Story?
Change comes at us from every angle as people update and upgrade everything from their diets to their devices, seemingly every day. When we enter adulthood as a young professional, we never imagine that we are only a couple dozen phones or a handful of trendy diets from marriage, parenthood or even retirement. Diets and devices can be great, but not all change is good, right? At every stage of life, financially confident people know that they can embrace the good and safeguard against the not-so-good with solutions designed to do just that. Enter: whole life insurance. Not just your parents’ insurance, whole life can actually benefit you no matter where you are in life.
THE BEGINNING: YOUNG PROFESSIONALS
When we’re young and focused on our dreams, we rarely consider the possibility of an unexpected, devastating change. What would happen if you died prematurely? It may be unsettling to think about, as it would be very painful for your family.
As you pay into your whole life insurance policy, it accumulates cash value. The ultimate goal of the money is to provide financial security for your loved ones in the event of your death. Along the way, however, you can still benefit from the accrued cash value. Whole life can be used to help fund improvements for your life today, such as buying a new home. It can also be used to fund or grow a business.1
In fact, millennials are starting and owning businesses at a rate greater than preceding generations. So, whether you’re getting a new business off the ground, or upgrading from your basement to main street, the cash value from your policy can help to move your business forward.
TYING THE KNOT: NEWLYWEDS
Imagine you are about to walk down the aisle. You and your best friend go out on the town for one last night of single bonding. You express your hopes (and concerns) for the future. Will I be a good spouse? Are my financial priorities lined up? Your bestie shares some insights. They have whole life insurance. “That’s so morbid,” you say. “Why are you bringing up life insurance? Are you trying to kill me?” “No—but it is important to ensure your future family is protected, and it also grows cash value.
GETTING SERIOUS: PARENTHOOD
You and your spouse have taken the plunge: Your first child is on the way. The life you’ve built isn’t just your own anymore — you want to protect what you have so it will last after you’re gone. Research shows that 54 percent of millennials like a protection-first philosophy, and they are big savers, a key part of a protection-first mindset. For instance, many young couples prioritize the need to pay off debt. But if you pay off debt without building protection, you can go right back into debt when something unexpected happens. Whole life insurance is one way to financially weather a crisis and build cash value in the process.
With whole life insurance, at least you can protect them from financial distress. If you have student loans or credit card debt, whole life insurance guarantees2 a death benefit to your loved ones, regardless of when you die, and can help cover your debts. With whole life insurance, you are covered for your entire life. Assuming you pay the monthly premium in a timely manner, your family will receive payments after your death.
WINDING DOWN: RETIREMENT
Imagine that decades have passed. You’ve had a great career, you’ve raised a beautiful family and now it’s time to retire. Your spouse is worried that you aren’t prepared, but you know you’ve made a financial plan and stuck to it. “The night before our wedding, my best friend convinced me to buy whole life insurance,” you explain to your spouse, “and it set me on a path of financial confidence that I’m still walking today. Most important drink of my life.”
Whole life is an attractive asset because it’s not subject to the volatility of the stock market. Its cash value grows3 at a healthy rate, and over a lifetime it adds a nice balance of both stability and reward to any portfolio.
It’s often been said that “the only constant in life is change.” Whole life insurance (and the guidance of a financial professional) can help us anticipate change and prepare for it.
Brought to you by The Guardian Network © 2018. The Guardian Life Insurance Company of America®,NewYork, NY
2018-68567 Exp. 09/2020
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 outstanding 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 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
 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.
 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
The Guardian Network® is a network of preferred providers authorized to offer products of The Guardian Life Insurance Company of America (Guardian), New York, NY and its subsidiaries.