selling the annuity solution a draw-down … the annuity solution for agent/dealer use only. not for...

SELLING THE ANNUITY SOLUTION

For Agent/Dealer Use Only. Not for distribution to the general public.

The Guardian Insurance & Annuity Company, Inc. 7 Hanover Square, New York, NY 10004-4025

A Draw-down Strategy with Longevity ProtectionYOU

CLIENTSCLIENTS

SOLUTIONSOLUTIONS

ANNUITIESNNUITIESA

Clients utilizing draw down from savings strategies for income may be underestimating their life expectancies.

RETIREMENT ISSUE

Guardian SecureFuture Income AnnuitySM

PRODUCT LINE

Clients with 5 to 10 years until retirement who are looking to draw down their assets with confidence and who are also looking to protect against longevity risk.

TARGET AUDIENCE

As an insurance agent, you use actuarial data each day that lifts you higher on the advisor service scale because it helps you relay mortality information to clients. This helps them develop efficient savings draw down strategies so that their assets last for the number of years they expect to live during retirement. But, what if they live longer?

Again, you are lifted higher on the advisor service scale because of the longevity protection products you have access to as a Guardian Agent, such as the Guardian SecureFuture Income AnnuitySM (GSF), a deferred income annuity. Plus, purchasing this product may help clients preserve more assets during retirement.

WHY TODAY?

Identify those clients who may be contemplating using a draw down from savings income strategy. Contact the Guardian Investor Services (GIS) Marketing & Sales Desk at (800) 650 – 6505 to have Guardian Secure Future Income AnnuitySM illustrations run with your client’s information and time horizon for their desired income start date.

ACTION STEP FOR YOU

IN THIS DOCUMENT:

– Generating the Numbers

– Conversation Starters

– Uncovering Annuity Sales Opportunities

– Contact Your Annuity Partner

Generating the Numbers


Let’s say you have a female client who is age 60 and wants an income stream of $75,000 per year to start at age 67 (a year after her full retirement age), 40% of which will come from Social Security. She will need to generate $45,000 from her assets each year. She’s been a good saver, and has $900,000 just for the purpose of drawing down over the next 20 years ($45,000 x 20 = $900,000). She’s not expecting a long retirement, but what if she’s wrong?

As a Guardian Agent, you can help prepare her for longevity risk and also help her conserve some savings. Here’s how:

If she were to purchase Guardian SecureFuture Income AnnuitySM today at age 60 with the premium shown at left, selecting Life Annuity with a 10 year Guaranteed Period and deferring income until age 77, she will receive a $3,750 monthly annuity payment ($45,000 per year) beginning at age 77 and for her lifetime.

Beginning at age 67 (when she retires) she can draw $45,000 per year for the next 10 years from her remaining assets (total withdrawal of $450,000) stopping at age 77, at which point the lifetime annuity payments begin.

After deducting the premium for purchasing the annuity and the total withdrawals over the first 10 years of her retirement, she will have remaining of her assets the amount shown at left when she’s age 77.

SPEND-DOWN AND PROTECT AT THE SAME TIME

GUARANTEEING FUTURE PAYMENTS

DRAWING DOWN WITH CONFIDENCE

SAVINGS FOR THE “UNEXPECTED”

Beginning Balance

Premium Payment to the Annuity

Withdrawing $45,000 over 10 years

Conserved Savings

As of:

Rates are subject to change at anytime

June 4, 2013

$192,609

$450,000

$257,391

$900,000

*The maximum monthly benefit from Social Security for 2013 equals $2,533 or $30,396 annually.

Results may vary depending on your client’s circumstances and financial net worth at the time he/she retires. Other deferral periods may be better suited for other clients.

OTHER HYPOTHETICAL EXAMPLES AT DIFFERENT INCOME GOALS

Desired Annual Income $60,000 $65,000 $70,000 $80,000 $85,000

Social Security (typically 40% of retirement income)

$24,000 $26,000 $28,000 $30,396* $30,396*

Remaining Income Needed from Assets

$36,000 $39,000 $42,000 $49,604 $54,604

Beginning Savings based on 20 year Draw Down (Inc from Assets x 20)

$720,000 $780,000 $840,000 $992,080 $1,092,080

Purchase of GSF Annuity at age 60; Income start age: 77

Savings Needed for a 10 year Draw Down (Inc from Assets x 10)

($360,000) ($390,000) ($420,000) ($496,040) ($546,040)

Assets Remaining from 20-year Draw Down Plan

It’s unknown where interest rates will be at in the future. Be sure to let clients know it may be more economical to act now with today’s savings to secure future lifetime payments than to wait until a specific future age to secure immediate lifetime payments of an equal amount. For the example on the front, if she waited until age 77 to purchase our single premium immediate annuity (SPIA), the premium shown left would be needed to secure a lifetime payment equivalent to the deferred income payment purchased at age 60. In other words, she would need the after-tax required rate of return (RROR) for 17 years, shown left, using the GSF premium as the starting point.

THE COST OF WAITING

SPIA Premium:

GSF Premium:

Deferral Period:

RROR:


($204,671) ($221,726) ($238,782) ($282,036) ($310,417)

$155,329 $168,274 $181,218 $214,004 $235,623

4.54%17

$257,391

$547,360


Conversation Starters

Review these opening statements to see how you can get the conversation started with your prospects.

“People are living longer today than ever before. You may be planning to draw down on your assets based on the amount of years you’re expecting your retirement to be. But, what if you live longer than you expect? This is called longevity risk, and I want to help you plan accordingly to prepare for it.”

“When it comes to income, not all asset classes or financial instruments were created equal. It’s important for you to understand how each one can work in your plan for creating sustainable income throughout all of retirement, and I can help you along this path.”

FIRST-TIME PROSPECTS

“I was reviewing your portfolio, and noticed that you don’t own an income annuity. I also see that your other investments have been performing well, too. It may be an appropriate time to talk about turning these gains into future guaranteed lifetime annuity payments. You are smart enough to own life insurance as a financial protection for your family in case you die too early; owning lifetime annuity payments as a protection for you [and your spouse] in case you live too long is just as smart .”

EXISTING CLIENTS

To Solicit and Sell Deferred Paid-up Fixed Annuities, you must:

or above;

state; and

complete the NAIC Suitability in Annuity Transactions Model Regulation training modules for fixed annuities.

link to the above article.

ON MarketEDGE™:

Utilize these marketing tools to help you share with clients this concept in easy to understand terms and language.

YOUR MARKETING TOOLS

EMPLOY THE “5 X 5 SOLUTION” MARKETING CAMPAIGN


Uncovering Annuity Sales Opportunities on MarketEDGE™

based on your book of business. Follow these easy steps to create your targeted list of annuity sales opportunities:

1. Select List Builders

2. Select Your Clients or Your Agency Clients

3. Select Product Sales Opportunities in the left navigation field

4. Filter Your Choices by who owns a specific product line (Life, Mutual Fund, LTC, and DI) but doesn’t own an annuity.

The “5 x 5 Solution” is a controlled drip campaign method where you send no more than 5 prospecting letters or emails per day to a selected target list. You then follow up in 2 to 3 days with mail clients and/or within 24 hours for email clients. This way you have realistic goals to help you achieve the most optimal marketing outcome.

Work with your Annuity Wholesaler to filter your prospecting lists for the best audiences to target.

Your annuity wholesaler is your local resource from The Guardian Insurance & Annuity Company, Inc (GIAC). Your Annuity Wholesaler is there to help you:

Grow your business practice;

Increase your value proposition; Conduct one-on-one meetings or group seminars.

Contact Your Annuity Wholesaler

John Coyle MA, ME, NH, RI, and VT (781) 826-3563

Kevin Dolan DE, Eastern PA, MD, Washington DC, and VA (610) 220-8770

Jennifer A. Garman AR, IL, IN, KS, KY, MO OK and TN (317) 513-3232

Dave Guarino CT, Central PA and Upstate NY (716) 462-0215

Luke Gunnells AL, LA, MS, Panhandle FL, and TX (251) 295-2455

Patrick Heeb New York City and Westchester (973) 476-2911

Michael Hess AK, CA, HI, OR and WA (310) 497-7932

Mitchell Katz Brooklyn, Long Island, Staten Island & Queens (631) 499-7942

Matthew Kelly MI, OH, Western PA and WV (412) 818-3037

Steven J. Kennedy New Jersey (973) 831-1631

Bill Machacek IA, MN, ND, NE, SD and WI (651) 688-3234

Devin Malay AZ, CO, ID, MT, NM, NV, UT and WY (480) 245-9151

David Posluszny GA, NC and SC (980) 275-3299

Stan Posluszny Florida (813) 597-4793

Guardian SecureFuture Income AnnuitySM and Guardian Guaranteed Income Annuity IISM are service marks of and are issued by The Guardian Insurance & Annuity Company,

business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.

GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.

Product availability and features may vary by state.

Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc.

www.GuardianOnline.com


2013—05641


Contact your annuity wholesaler so you can get started with enhancing your business model today.

THE GUARDIAN INSURANCE & ANNUITY COMPANY, INC. (GIAC)

Drawing Down with Confidence and Savings

Many retirees use a proportional draw down from savings strategy for income purposes during retirement, assuming a predetermined number of remaining years left of life. While this strategy may seem sound, it doesn’t factor in longevity risk – the risk of living longer than planned.

CONSIDER A PAID-UP DEFERRED FIXED ANNUITYIt may be economical for you to purchase today a future stream of lifetime income that begins at a certain age during retirement in addition to utilizing a draw down strategy. A paid-up deferred !xed annuity, also called a deferred income annuity, allows you to combine the bene!ts of time with insurance company actuarial expertise. Consider this hypothetical example.

Helen, who is age 60, wants an income stream of $75,000 per year to start at age 67 (a year a"er her full retirement age), 40% of which will come from Social Security. To meet her goal, she will need to generate $45,000 from her assets each year. She’s been a good saver, and has $900,000 just for the purpose of drawing down over the next 20 years. Helen is not expecting a retirement longer than this, but what if she’s wrong?

GUARANTEEING FUTURE PAYMENTSIf Helen were to purchase the Guardian SecureFuture Income AnnuitySM today at age 60 with the amount shown at le" from her savings, selecting Life Annuity with a 10 year Guaranteed Period and deferring income until age 77, she will receive a $3,750 monthly annuity payment ($45,000 per year) for her lifetime.

HELEN’S CONFIDENCE BOOSTBeginning at age 67 (when she retires), Helen can withdraw $45,000 per year for the next 10 years from her remaining assets (total withdrawal of $450,000) and then stop at age 77, at which point her lifetime monthly annuity payments will begin.

SAVINGS FOR THE “UNEXPECTED” A"er deducting the premium for purchasing the annuity and the total withdrawals from her savings over the !rst 10 years of her retirement, Helen will have remaining of her assets the amount shown at le" when she’s age 77 for unexpected expenses or anything else she may wish to spend on.

Beginning Balance

Premium Payment to the Annuity

Withdrawing $45,000 over 10 years

Conserved Savings

As of:

Rates are subject to change at anytime.

$900,000.00

$257,391.30

$450,000.00

$192,608.70

June 4, 2013

This document is not a legal contract. For terms and conditions please refer to the annuity contract.

The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This document supports the promotion and marketing of this annuity.

Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.

Guardian SecureFuture Income AnnuitySM is a service mark of and issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.

GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.

Product availability and features may vary by state.

Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc.

www.GuardianLife.com

Not a deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee


EB016695 2013—04916

WHAT IF HELEN WAITED?It’s unknown where interest rates will be at in the future. But it may be more economical to act now with today’s savings to secure future lifetime payments than to wait until a future age to secure immediate lifetime payments with the same value. In Helen’s case, if she waited until age 77 to purchase a single premium immediate annuity, she may need a higher premium to secure a lifetime payment equal to the lifetime payment that her Guardian SecureFuture Income AnnuitySM

premium purchased for her at age 60. REGAIN YOUR CONFIDENCE ABOUT RETIREMENT

#ere were a lot of “ifs” in Helen’s hypothetical case study – If Helen did this, if she did that – for her to create her saving opportunity. #inking about your saving opportunity only takes you partway; implementing the action steps gets you on the road to securing that opportunity.

Don’t wait to contact and work with your !nancial professional or insurance agent. You may have the means today to retire di&erent by securing the lifetime income guarantee you need for retirement when you buy the Guardian SecureFuture Income AnnuitySM.

(06/04/2013)

Decline of De�ned Bene�t Plans

89

10 14

70

1985 2012

Traditional De�ned Bene�t Plans

Number of Fortune 100 Companies Plan Sponsorships

De�ned Contribution Plans

[RecipPrefix] [RecipFirstName] [RecipLastName][RecipTitle][RecipCompany][RecipAddressLine1][RecipAddressLine2][RecipCity], [RecipState] [RecipZip]

The Guardian Life Insurance Company of America7 Hanover Square, Mailstop H-23-HNew York, NY 10004-4025

Increase Your Confidence about Retiring with Guaranteed Lifetime PaymentsIt’s no myth that defined benefit pension plans (which guarantee lifetime income during retirement) are disappearing as an employee benefit.1

Your retirement will not be like your grandparents’ or parents’ retirements. You need to take action with the savings you have today.

1 Towers Watson; Retirement Plan Types of Fortune 100 Companies in 2012; October 2012

[[SenderFullName]][[AgencyName]][[SenderAddressLine1]][[SenderAddressLine2]][[SenderCityStateZip]][[LicenseNum]]

EB016706 (4/13) 2013-04918

The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This document supports the promotion and marketing of this annuity. Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel. Annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.Product availability and features may vary by state.Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc. www.GuardianLife.comNot a deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee

Dear [RecipFirstName],

I know of a potential strategy that involves a deferred income annuity that allows you to guarantee future lifetime income, reduce longevity risk (the risk of outliving your assets) and possibly conserve some savings when you reach a specific age, depending on the amount of your retirement savings and your time frame until retiring.

I will contact you in a few days (or you can contact me at the number below) so that we can discuss your plan for retirement, and see how I might help you meet your goals so that you can retire different.

Sincerely,

[[SenderFullName]] [[SenderDesignations]]

[[SenderTitle]] [[SenderPhone]]

[[SenderDisclosure]]

selling the annuity solution a draw-down … the annuity solution for agent/dealer use only. not for...

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