Broker Check

Consider a holistic strategy that can help offset your life and disability premiums

May 09, 2022

When it comes to protecting yourself and your family, holistic protection is key. There are many ways
you can prepare for the unexpected and help ensure your family is protected from life’s “what if”
moments. Creating a financial strategy that includes both life and disability insurance (DI) is a critical
first step. By having both permanent life and DI, you can have confidence, knowing that you are
prepared for the unexpected.

As you may know, there are many benefits of owning a whole life insurance policy such as the
guaranteed values and dividends that it can provide. But, there are a variety of ways you can use those
guaranteed values and dividends, including to help offset your life and DI premiums. 1, 2 This strategy is
called a “Double Premium Offset” and it works by using a Whole Life 99 (L99) policy as a tool to help
offset your life and DI premiums while also providing many tax benefits.

By implementing a Double Premium Offset strategy, not only do you have the holistic protection of
permanent life and DI, you also have a tax-deferred buildup of cash value in the whole life policy3,
access to policy cash values on a tax-favored basis4,5, an income-tax-free disability income benefit
and an income tax death benefit to your beneficiaries. What’s more is that you don’t need to pay
premiums out-of-pocket after the offset year. At Rethink Wealth, let us help you decide if a
double premium offset strategy is a smart choice for you and your family.

View this flyer to see how a double premium offset strategy can work for you.

1All 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.
2Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.
3Some whole life polices do not have cash values in the first two years of the policy and don’t pay
a dividend until the policy’s third year. Refer to the individual whole life policy illustration for
more information.
4Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice.
Consult your tax, legal, or accounting professional regarding your individual situation.
5Policy 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.