Whole life guarantees / Index-powered upside potential

The Index Participation Feature In Action

Take a look at the difference electing the Index Participation Feature (IPF), which is a rider, can make for a policyholder over time. These hypothetical examples help to illustrate the performance of a Whole Life policy with IPF assuming a 4%, 8% and 12% Index Interest Rate. The hypothetical examples compare the non-guaranteed illustrated values at allocations of 0%, 50% and 100%.
Select a policy example below and then either option to display values for the 50% or 100% Allocation. All scenarios will automatically display a 0% allocation.
Place your cursor over each of the line graphs in the chart to see the underlying hypothetical values.

Select either option to display values for:



The values reflected in this chart are based on a hypothetical policy that is not available for sale and are intended to demonstrate, in general terms, the impact of IPF on illustrated policy values. 
The Index Participation Feature allows a policyholder the ability to take some additional risk with a portion of the policy’s value to potentially improve policy performance, while still maintaining the policy’s base guaranteed cash value.

The Index Participation Feature (IPF) allows the policyholder to choose a percentage of the cash value of paid-up additions (PUA) within the policy to be allocated to an annual index segment tracking the S&P 500® price return index,* subject to a cap (currently 12.5%) and a floor (currently 4%).
Policyholders can allocate between 0% and 100% of the cash value of PUA to the IPF each year, allowing for maximum flexibility. The greater the percentage allocated to the IPF, the greater the opportunity for upside potential. Since the IPF only applies to the cash value of PUA, policy designs with PUA contributions can significantly enhance the performance of the policy, while maintaining the policy’s base guarantees and protecting against downside market risk.

The IPF provides an adjustment to the dividend paid under the policy. This adjustment, subject to the cap, participation rate and floor, may be positive or negative based on index performance. Adverse market performance can create negative dividend adjustments which may cause lower overall cash values than would otherwise have accrued had the IPF not been selected. While the adjustment provided by this rider is affected by an external index it does not participate in any stock or equity investment of the external index. Because the IPF is not a security registered with the Securities and Exchange Commission, agents do not need a securities license to sell it.
*The S&P 500 price return index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by The Guardian Life Insurance Company of America (Guardian). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Guardian. The Index Participation Feature ("Product") is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such Product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 return price index.
Please see additional details in the Important Disclosures link contained within this website for complete information.