For Agent/Broker Use Only—Not For Use With The General Public.

Funding a Buy-Sell Agreement with an Alternative Business StrategyGuardian Whole Life Insurance With DuoGuard

1DuoGuard is not available on 10-Pay Whole Life, Executive Strategies Whole Life, Single Premium Life and single life universal life policies.

Case—A business with a goal to establish and properly fund a buy-sell agreement• Mike,Nancy,andJimarethethreeownersofasuccessfulcontractingcompany

• Theymeetwiththeirattorneytodraftacross-purchase,buy-sellagreementtoprotecttheirbusinessinterestsincaseoneofthempassesaway

• Theownerswanttoexploreinsurancestrategiestofundtheagreement

Future Planning Objectives:• Keepoptionsopentoaccommodatefuturechangestothebusiness

• Maintainliquidityandcreditworthinessofthebusinesswhileprotectingtheownersestates

• Protecttheabilityofthesurvivingownerstoreassessthebusiness’valueandpurchaselifeinsurancetomaintainasuccessionplanregardlessoffuturehealth

Planning Solution:• Theirattorneydraftsa‘trusteed’cross-purchaseagreement

• Foreachbusinessowner,oneGuardianwholelifepolicyispurchasedwithtwoDuoGuardridersoneach–eachDuoGuardridernamesoneoftheothertwocorrespondingownersofthebusiness

• Thedeathbenefitsandcashvaluesofthepoliciescouldbemaintainedoutsideofthebusinessownersownpersonalestates

• WiththeDuoGuardridersadded,theowners’trusthastheoptiontoobtainmorelifeinsurancecoverage-regardlessofthesurvivingownersinsurabilityuponthedeathofthefirstowner

• DuoGuardgivesthesurvivingownersflexibilityforfuturebusinesssuccessionplanning–whichcanbeparticularlybeneficialifthebusinessvaluegrowsinthefuture

What is a ‘trusteed’ cross-purchase agreement?It’satypeofcross-purchaseagreementthataddsathirdparty,thetrustee,toensurethattheagreementiscarriedout.Itcaneliminatesomeofthecomplexityoftraditionalcross-purchaseagreementswhichtypicallyhaseachownerpurchasingalifepolicyontheotherowners(i.e.3ownerswouldneed6policiestoproperlyfundatraditionalagreement).Inthe‘trusteed’version,theagreementhasthetrusteebeingtheownerandthebeneficiaryofonelifepolicyoneachbusinessowner,witheachbusinessownercontributinghis/hershareofthepremiumtothetrusteeinproportiontotheirownownershipinterestinthebusiness.

What is DuoGuard?It’savalue-addedrideravailableonaGuardianwholelifepolicyforamodestadditionalpremium1.Itguaranteesabeneficiarytherighttopurchaseanewlifeinsurancepolicycoveringadesignatedlifeaftertheoriginalinsureddies.

CaseStudy

Your freedom, guaranteed—Guardian Whole Life Insurance

®

The Guardian Life Insurance Company of America, New York, NY 10004-4025Pub 4381 (12/09)2009—11166 For Agent/Broker Use Only—Not For Use With The General Public.

No one can predict the future, but adding a DuoGuard rider to your client’s life insurance policy provides a solution for long term planning that may span generations.

For more information, please contact your local Guardian agency today.

2Dividends are declared annually by Guardian’s Board of Directors and are not guaranteed.3The total lifetime DuoGuard coverage cannot exceed $7.5 million.

Duoguard with Business PlanningDuoGuardisavaluablesolutionforbusinessplanning.Aspartofabusinesssuccessionplanorbuy-sellagreement,DuoGuardallowssuccessorsorsurvivingownerstoactontheneedforadditionalcoveragefollowingthedeathofakeypersonorowner.

Keyadvantagestofundingabuy-sellagreementusingaGuardianWholeLifepolicywithDuoGuard:

• Unlikefundingitwithterminsurance,aparticipatingwholelifepolicyaccruesguaranteedcashvaluesandannualpolicydividendsthatcanfundfuturepremiumsorotherbusinessneedsinperiodsofreducedcashflowortightcreditmarkets2

• UnlikeusingawholelifepolicywithoutDuoGuard,withit,DuoGuardgivesthesurvivingownersflexibilityforfuturebusinesssuccessionplanning

Five’s the numberUptofiveDuoGuardriders,eachwiththeirowndesignatedlifemaybeattachedtoasinglelifeinsurancepolicy,andeachoptionmaybeasmuchasfivetimesthebasicfaceamountofthepolicytowhichitisattached.3