Guardian Product Overview: Current Assumption UL w/ Secondary Guarantee (SG) Rider

On Monday, June 22 nd, Guardian released a new version of their Current Assumption UL product, replacing their 2012 version. It includes pricing changes, along with the addition of a new Secondary Guarantee (SG) Rider and a Cash Value Enhancement (CVE) Rider.

The revised pricing provides for exceptionally strong competitive positioning for select key age segments and risk classes; it now competes head-to-head against the lowest-priced product in the market, John Hancock’s Protection UL 15. The addition of the Secondary Guarantee (SG) Rider further enhances its competitive edge by significantly improving the average number of guaranteed years with insignificant increases in premium. With the rider, Current Assumption UL outperforms almost every other current assumption product available in the market.

With this release, premiums dropped an average of 4.5% with the most aggressive changes (double digit decreases) happening between ages 50 to 70. Guardian was able to expand their competitiveness to include all nontobacco risk classes within the aforementioned age range for both males and females. The sweetest spot can be found when looking at full-pays. The drop in premiums directly corresponded to a drop in the cash surrender value.

The addition of the SG Rider provides for a substantial competitive edge. On average, premiums are only 1.5% higher than the base price. Overall, adding the rider increases the average number of guarantee years by 16 (average guarantee age moves from 77 to 93). One should be mindful that there is an interesting, significant drop in the guaranteed years when looking at age 55, full-pays for males and females. It’s also important to note their product manual specifies, “Current COIs will be assessed for the later of 30 years or attained age 100. Guaranteed COIs can be assessed until attained age 121.”

The Cash Value Enhancement (CVE) Rider is not currently considered in LifeTrends benchmarking. We will continue to monitor the market to identify any trends towards the manufacturing, positioning and distribution of the CVE Rider within the current assumption market.

Targets increased by 5% for ages 70 and below; significant, double digit decreases were ages 75 and above; age 70 saw no changes.

Rates were updated on the LifeTrends website on Monday, June 22 nd.