The Pros and Cons of Guardian's 10-Pay High Cash Value Design Whole Life Insurance Product Explained

In this video, we'll be discussing the 10-pay whole life insurance option offered by Guardian. This type of policy allows policyholders to pay their premium in full within 10 years, while still providing lifelong coverage. We'll discuss the benefits of this option, such as the the potential for strong net IRRs on cash value growth illustrated to be ~5%, the lower death benefit required for a given funding outlay as compared to other products, and the convenience of paying off the policy quickly. We also discuss the drawbacks, such as a higher initial premium cost, lower contractual guaranteed rate of 2% as compared to 3% for all post 7702 Guardian products, as well as the need to budget for larger lump-sum payments in relationship to the PUA (Paid Up Additions) rider contributions. The 10-pay product from Guardian has a 5x limitation of PUA contribution multiple to base premium, except for in the first year. Whether you're considering purchasing a 10-pay whole life policy or just want to learn more about this type of coverage, this video will provide you with the information you need to make an informed decision.

Typical 10 Pay Whole Life Insurance Benefits
1. Guaranteed Level Premiums: After 10 level yearly premium payments, the insurance is paid up and no more contributions need to or can be made.
2. Guaranteed Lifetime Coverage: Your coverage cannot be discontinued as long as premiums are paid and policy loans do not exceed the entire cash value.
3. Tax-Deferred Cash Value Accumulation: Your insurance plan is set up to accumulate cash value each year on a tax-deferred basis, as long as the policy is used appropriately and no taxable events are triggered (MEC). To help pay for a big purchase, add to your retirement income, or simply provide in times of need, you can take advantage of policy loans and withdrawals.
4. Policy Dividends: A dividend may be paid on your 10 Pay Life Insurance Policy.
5. Can have Living Benefits: A portion of the death benefit may be used to pay for medical expenses in the event you have a specified medical condition, terminal illness, or a chronic illness.

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DISCLAIMER: All advice and/or opinions expressed in our videos are the result of our experience in the insurance and financial industries. Any action taken based on the information expressed in our videos is the sole responsibility of the viewer. All content produced is for informational purposes only.

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[ryansun]

My agent runs an illustration for the Guardian 10 pay product for me. It can actually keep paying the same amount of premium outlay after 10 years. My agent says the 10 year limitation is only for base premium but not for the PUA rider.