Guardian Annuity Review

To get in on the Guardian Investor ProFreedom Variable Annuity B Share, you’ll need at least $10,000 ready to invest. Once your account is open and active, Guardian will allow you to invest in the investment fund of your choice. In fact, the company has made more than 50 variable funds available that use investment strategies that range from passive management to equity- and bond-based portfolios and more.

The death benefit for this annuity affords your beneficiaries the accumulation value of your contract. For reference, this value is what ultimately decides how much your eventual payments will be. Guardian also provides extra death benefit riders for a fee. These include options that guarantee a payout of your premium, a payout based on your contract’s highest anniversary value and more.

Fees

Variable annuities usually come with high fees, with administrative and mortality and expense risk charges being among the highest. With the Guardian Investor ProFreedom Variable Annuity B Share, you’ll pay 0.75% annually to cover these fees. There are also management and 12b-1 fees associated with the investment funds available through a variable annuity. With Guardian, these fees can range anywhere from 0.51% to 7.47%.

If you decide to add on benefit riders to your contract, you’ll also pay a charge. These fees are as follows:

• Highest anniversary value death benefit rider: 0.35%
• Return of premium death benefit rider: 0.25%
• Return of premium plus death benefit rider: 0.45%
• Combination of death benefit riders: 0.50%

Guardian does not charge for early withdrawals from this annuity contract. However, if you decide to withdraw before age 59.5, the IRS will likely charge you a 10% income tax penalty, on top of your standard income tax rate.

Realistic Return Expectations

There are a plethora of investment funds you can include in your Guardian Investor ProFreedom Variable Annuity B Share contract. Because of this, it's essentially impossible to predict what kinds of returns you could earn as an annuitant.

The Guardian Fixed Target Annuity can be easily personalized to fit your personal needs. More specifically, Guardian offers eight guaranteed interest periods that last anywhere from three to ten years. Generally speaking, the longer the term you go with, the better the rate your contract will be afforded.

Once your initial interest period ends, Guardian lets you renew for either three to ten years. At the end of your initial period, you can also go with a one-year guaranteed interest period. If you choose the latter, you’ll receive a new interest rate every year, but gain increased liquidity and flexibility.

The maximum issue age for this contract is 85 and the minimum initial premium is $5,000.

Fees

You won’t need to worry about paying annual fees with the Guardian Fixed Target Annuity. However, this contract does use a rather complex withdrawal fee schedule should you take out more than 10% of your contract value over a single year. The below tables shows what you’ll pay if you withdraw too much during your contract’s initial purchase period.

If you decide to renew your contract for another purchase period and you surpass the 10% free withdrawal limit, the fees below will apply:

Remember that withdrawing funds from your annuity before you turn 59.5 will result in a 10% tax penalty on top of the standard income tax.

Realistic Return Expectations

Guardian’s Fixed Target Annuity offers variable returns depending on the specifics of your financial situation. These factors include how much you decide to invest, the length of the purchase period you select and how your chosen investments perform.

If an immediate annuity fits your needs better, the Guardian Guaranteed Income Annuity III lets you decide between monthly, quarterly, semi-annual or annual payments and either of the following:

• Life annuity without guaranteed period: Payments last for the annuitant’s life. If designated as a joint life contract, payments will continue until the last surviving joint annuitant passes away.
• Life annuity with guaranteed period: Not only will payments endure for the annuitant’s life, but a 5- to 30-year guaranteed period can be chosen. If the annuitant dies before the guaranteed period ends, then the beneficiary will receive payments for its remainder.

The maximum issue age for this contract varies based on the income style you choose. With "life annuity without guaranteed period," the maximum issue age is 85. With all other options, the maximum issue age is 90. The minimum initial premium is $10,000.

Fees

Guaranteed Income Annuity III from Guardian is devoid of all annual contract fees, which is common for immediate annuities.

While it’s not a fee charged by Guardian, don’t forget that the IRS imposes income taxes on your withdrawals - and they’ll tack on an extra 10% tax penalty if you withdraw before hitting age 59.5.

Realistic Return Expectations

Immediate annuity contracts are built to provide reliable income for annuitants. As you might expect from a product that prioritizes income rather than growth, returns are usually fairly minimal. Of course, depending on how long you live and which income option you select, you might wind up receiving more in income than you put into the annuity.