About this product
Guardian Investor is a 15-year, non-medical, endowment assurance contract under which the maturity proceeds are determined by the performance of the Blue Chip Fund. The operation of the fund is outlined in section 10 of this booklet. The minimum coverage is $550,000. This plan is offered to ages 0 - 65.
The Total Basic Premium payable comprises:
• The Basic Premium
• The Policy fee
Guardian Life may levy additional premiums, in respect of either an exceptional risk of death or to secure additional benefits. The Equity Premium, which is the amount to be invested in the units of the Blue Chip Fund, is denned as a proportion of the Total Basic Premium. The proportion is dependent on the Policy Year of the contract, according to the following table:
Policy Year - Percentage of Total Basic Premium
• 1 - 50%
• 2 - 70%
• 3 & over - 85%
The equity premium is invested on the due date (and at the offer price in force) or the date the total premium is received by Guardian, whichever is later.
On a monthly basis, while the Policy is in force, Guardian Life will deduct from the value of the units calculated at the prevailing bid prices, an administrative fee to meet administrative expenses. This amount may be changed from time to time.
On the death of the life assured before the expiry of the Policy, the benefit payable will be the greater of:
• the sum of Basic Premiums remaining to be paid had the life assured survived to the maturity date
• the value of the units allocated to the Policy as determined by the bid price prevailing on the date of notification of death. If death is by suicide within two years of the commencement or reinstatement date of the Policy, the death benefit will be limited to the surrender benefit.
The value of the units attributed to the Policy, as determined by the bid price prevailing on the maturity date, will be payable.
The amount payable is the value of the units allocated to the Policy, based on the bid price prevailing on the date of surrender, less a Surrender Charge. The Surrender Charge, which is denned as a percentage of the Basic Annual Premium, depends on the Policy Year on the date of surrender as follows:
Policy Year on the Date of Surrender - Surrender Charge as a Percentage of the Basic Annual Premium
• 1 - 47.50%
• 2 - 42.22%
• 3 - 36.94%
• 4 - 31.67%
• 5 - 26.39%
• 6 - 21.11%
• 7 - 15.83%
• 8 - 10.56%
• 9 - 5.28%
• 10 & over - 0.00%
Encashment of Units
At any time, a portion of the units allocated to the policy may be encashed at the bid price prevailing on the date of encashment less an encashment charge. This charge is a percentage of the amount encashed and depends on the time of encashment as follows:
Policy Year - Encashment Charge as a Percentage of the Amount Encashed
• 1 - 12.50%
• 2 - 11.67%
• 3 - 10.83%
• 4 - 10.00%
• 5 - 9.17%
• 6 - 8.33%
• 7 - 7.50%
• 8 - 6.67%
• 9 - 5.83%
• 10 - 5.00%
• 11 - 4.17%
• 12 - 3.33%
• 13 - 2.50%
• 14 - 1.67%
• 15 - 0.00%
Encashments are subject to the following constraints and conditions:
• The value of units encashed must exceed $1,000, or such other amounts Guardian Life may determine from time to time.
• The value of units remaining allocated to the policy must exceed 120% of the surrender charge applicable to that date.
The policyholder may make the policy Paid-Up, at which time the value of the units will be reduced to be equal to the surrender value at the date the policy is made Paid-Up. The death and surrender benefits shall thereafter be the value of the units allocated to the policy.
Non-Payment of Premiums
A period of thirty days, commencing on the premium due date, is allowed for payment of any premium. If a premium is not paid within the period of grace, the policy will be deemed to have been made Paid-Up in accordance with the section above.
At least once each year, Guardian Life shall furnish the Owner with:
• A statement showing:
- The amount allocated to purchase units in the Fund during the preceding 12 months.
- The number of units in the Fund allocated to the policy, together with their value, calculated at the bid prices on that date.
- The Surrender Benefit of the Policy on that date.
• A Fund Account, for the Blue Chip Fund, prepared not more than one hundred and five days before the date of the statement, showing:
- A list of the respective values of the investments of the Fund.
- All amount accrued to or deducted from the Fund over the year ended on the Fund Account.
Encashment of Units