Business Reducing Term

Unique Product, Unique Opportunity

FOR AGENT AND BROKER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC

8510-4-07

The Opportunity…

Do you have business owner clientswho have…

Borrowed money for an expansion?

Recently purchased a business or practice?

Offered a guaranteed employment contract to a key employee?

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The Opportunity…is Guardian

Do you have the only domestic product solution designed to cover these obligationsin the event of total disability?

Yes – absolutely:Guardian’s

Business Reducing Term* product

Business Reducing Term, policy form AH55-A, is provided by The Guardian Life Insurance Company of America, New York, NY.

Product provisions and features vary from state to state.

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What is Business Reducing Term?

Insures against a total disability thatprevents your client from meeting fixed obligations*:

Business loans, where repayment depends on talents of a key individual

Purchase agreements

Salary or performance guarantee contracts

*financial obligations requiring periodic payments and expiring at a given time.

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Overhead Expense isNOT the right answer!

And, assigning personal IDI coverageto protect these obligations is ill advised

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A Disability Can Happen…

You’ve identified the need for businesslife insurance

But did you know? A male aged 35 years is 4.1 times more likely to

be disabled before age 65 than he is to die*

At age 45, the odds are 4.4 to 1*

Disability of the owner is a leading cause of small business failure***Commissioner’s Individual Disability Table, 1985, and Commissioner’s Standard Ordinary Mortality Table, 1980. Statistics vary depending on the applicant’s gender, age, occupation and medical history.

**LIMRA International

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BRT: The 100% Solution

BRT covers…

Loan obligations: up to 100% of the monthly payment

Employment contracts: up to 100% of the after-tax cost of contract payments

BRT coverage issued in addition to personal DI

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Selling Business Reducing Term

Find the obligation and you’ve found the sales

Owners and professionals know they are “on the hook”

Separate the specific loan obligation from other “overhead expenses”

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How Does BRT Work?

$25,000 $1,000

Issue Term Ends $0 Issue Term Ends $0

Full Amount Payable Until

Face Amount Monthly Indemnity

DECREASING TERM LIFE INSURANCE REDUCING TERM DISABILITY INSURANCE

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How Does BRT Work?

Conditionally renewable to end of specified term renewal refused only if lack of insurable

interest or reduction/termination of economic need for the policy

your obligation: conduct an annual review

Premiums are level & sex-distinct

Available in all states except FL, MT, NC, SC, VA

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How Does BRT Work?

Coverage lasts for a specified term5 to 30 yearspolicy term = length of the obligationcoverage cannot extend beyond age 60

Elimination Periods: 1, 2, 3, 6, 12 months

Benefits paid during disability up to the end of the specified term

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How Does BRT Work?

Benefits payable directly to the “loss payee” Loss payee = holder of the obligation Indemnity policy – not reimbursement

Issue ages: 18 to 55 (age last birthday)

Issue limits: Minimum: $1,000/mo. ($500 if other Guardian or Berkshire

coverage in force) Maximum: $22,500/mo.*

*Maximum available issue limit determined by duration of the financial obligation.

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BRT Maximum Issue Limits

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5 $22,500

6 $19,500

7 $17,100

8 $15,300

9 $14,100

10 $12,900

11 $12,000

12 $11,400

13 $10,800

14 $10,200

15 $ 9,600

16 $ 9,300

17 $ 9,000

18 $ 8,700

19 $ 8,400

20 $ 8,100

21 $ 7,860

22 $ 7,740

23 $ 7,500

24 $ 7,380

25 $ 7,260

26 $ 7,140

27 $ 7,020

28 $ 6,900

29 $ 6,780

30 $ 6,660

Term BRT Term BRT(In Years) Issue Limit (In Years) Issue Limit

How Does BRT Work?

Total disability only “unable to perform all the substantial and material

duties of your occupation; and, you are not actually at work in any occupation or profession.”

Premiums waived during total disability lasting more than 90 days

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Applying for BRT is Easy

Proof of obligation loan agreement, employment contract, etc.

Streamlined medical underwriting

Use application form #DI AP-2003 California only: Guardian form #AP2-96 CA Applications at Berkshire e-Forms Center

Agency administrators will direct all BRT applications to the Spokane Underwriting unit Submit combination IDI & BRT applications to the

Pittsfield office

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Marketing & Sales Support

Client brochure (Pub1623)

Imprintable ads, flyers and pre-approach letters that can be viewed and ordered through the Marketing Tools Catalog available on www.berkshirelifetools.com

National Sales and Product Support Center: 866-590-8845, select option 1product_support@berkshirelife.com

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Business Reducing Term

Disability Insurance toProtect Your Business

Obligations

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