Life insurance
What is life insurance? First and foremost, it’s a way to protect your family and those who depend on you for financial support. It can provide a large, income tax-free payout to help them carry on if you pass away unexpectedly — and some policies have features that can help build family assets.¹
Over 160 years of protecting what matters
Why so many generations of Americans have relied on Guardian life insurance
Guardian has been protecting people with life insurance for over 160 years. With high scores for financial soundness from independent rating agencies, our 12 million customers can trust us to be there when they need us most.⁸ We have a five-star rating from NerdWallet, and have been named one of the best life insurance companies by CNBC and U.S. News.⁹ And as a mutual insurance company, we’re actually owned by our policyholders, so we can put their interests first without answering to outside shareholders.
Who is life insurance for?
If you have loved ones who depend on you for support — financial or otherwise — buying life insurance is one of the best ways to help ensure they’re provided for. Life insurance can also help people in other situations, like high net-worth individuals looking to transfer assets more easily without incurring added estate taxes.10
What does life insurance cover?
It’s insurance that provides a death benefit if the policyholder passes away while the policy is in effect. Life insurance benefits are almost always paid out as an income tax-free lump sum and can be quite significant — enough to replace several years of lost income.
Why should I consider life insurance?
Even if you don’t have dependents, life insurance is an important part of your financial wellness. Life insurance can do more than provide income replacement for your dependents — it can be used to help build tax-advantaged family assets, help assure the continuity of your business if you pass away, or even pay for final expenses.
When do people get life insurance?
There’s no time like the present — the younger you are, the more affordable your premiums and the more life insurance options you'll have. But a lot of people wait until a significant life event to get coverage. Three of the biggest include:
Getting married
Expecting a baby
Buying a new home
Other common reasons for getting life insurance are:
Taking on the role of a caregiver for a spouse, child, or aging parents
Finding employment as a gig worker
Becoming self-employed or starting a small business
How much do you need? Get an estimate.
How much coverage you need depends mostly on where you are in life and how many people rely on your income. Our quote tool can give you a quick estimate based on certain assumptions related to your age and income.¹¹ In general, the younger you are, the more coverage you'll need to compensate for the years of potential wage-earning ahead of you. And the more people depend on you, the more coverage you may want for income replacement if you die. However, you don't have to factor in taxes: almost all life insurance benefits are paid out as an income tax-free lump sum.
There are also other ways to evaluate your needs. Find out more about how to estimate your life insurance need, or speak with one of our financial professionals for a more personalized analysis of your needs. He or she can also tell you about how different types of insurance can provide added financial protection.
Everyone’s coverage is unique. Your quote will be based on information you provide, but you can adjust the term length and coverage amount to fit your goals.
Need more information?
Resources to help you learn and compare.
Find out more about the value of holistic financial protection
Questions about the COVID vaccine and life insurance coverage
Applying for life insurance? What to expect during the underwriting process
Taking advantage of cash value: A guide to life insurance loans
Term vs. whole life: Advantages and disadvantages
Want to compare? A purchaser’s guide to life insurance
Other products you may be interested in
Disability insurance
If you’re unable to work due to injury or medical condition, where will you get income to live on? Disability insurance can help support your family when it’s needed most.
Annuities
Annuities are a financial tool that can help provide a steady, guaranteed stream of income in retirement.12
Dental insurance
Dental insurance helps keep your mouth and body healthier by covering regular preventive oral care. And it helps cover costs every time you visit the dentist — even if you need major work.
This article is for informational purposes only. Guardian may not offer all products discussed. Please consult with a financial professional to understand what life insurance products are available for sale.
1,10 Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
2 Policy 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.
3 All 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.
4 Dividends are not guaranteed. They are declared annually by Guardian's Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.
5 Some whole life policies 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. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
6 Universal Life Insurance may lapse prematurely due to inadequate funding (low or no premium), increase in cost of insurance rates as the insured grows older, and a low interest crediting rate. This does not apply to universal life policies which have a secondary guarantee, but if the secondary guarantee requirements are not met, the policy will most likely lapse.
7 Permanent life insurance consists of two types: whole life and universal life. Cash value grows in a participating whole life policy through dividends, which are declared annually by the company's board of directors and are not guaranteed. Cash value grows in a universal life policy through credited interest and decreased insurance costs. The cash value of both policy types benefits when the policyholder pays an amount above the required premium.
8 https://www.guardianlife.com/about-guardian
9 CNBC, Here are the 6 best life insurance companies of 2023, 2023
Nerdwallet, Guardian Life Insurance Review, 2023, 2023
U.S. News, Guardian Life Insurance Review, 2023
10 Nerdwallet, Average Life Insurance Rates, Accessed March 2023
11 Calculator relies on the Human Life Value estimation method. It's a relatively simple way of looking at your needs based on what you're earning now and what you expect to earn in the future, according to the following chart.
Age | Maximum Life Insurance |
|---|---|
18-40 | 30 times income |
41-50 | 20 times income |
51-60 | 15 times income |
61-65 | 10 times income |
66-70 | 1 times net worth |
71-80 | 1/2 times net worth |
81+ | case by case |
You can adjust the coverage amount in the quote tool to see how it affects your quote.
12 Annuity guarantees are backed by the claims-paying ability of the issuing insurance company.
