GUARANTY INCOME LIFE INSURANCE COMPANY

Guaranty Signs Letter of Intent with Munich American Reassurance Company

Press Release

March 8, 2007, Baton Rouge, Louisiana – Guaranty Income Life Insurance Company (Guaranty) is pleased to announce the signing of a Letter of Intent with Munich American Reassurance Company (MARC) to reinsure the AnnuiCare® business issued effective March 1, 2007. Jim Sweeney, Executive Vice President and Chief Operating Officer of MARC, said, “We are very excited about our relationship with Guaranty. We look forward to a long standing and successful relationship as their reinsurer.” AnnuiCare®, the original Annuity/Long-Term Care (LTC) combination product, was introduced in 1999. Guaranty was the first company to attach a tax-qualified LTC rider to a traditional annuity.

MARC has studied the LTC market thoroughly, and it believes that Annuity/LTC combination products have tremendous potential in assisting the public with their retirement planning. MARC is the U.S. life reinsurance company subsidiary of Munich Re, the second largest reinsurance group in the world.

Mr. Lancaster said, “The passage of the Pension Protection Act (PPA) in August 2006 has added a great incentive for expansion of the combo market. We are excited to have MARC as our reinsurance partner. This agreement will allow Guaranty to expand the sales of AnnuiCare®. AnnuiCare® is a consumer-oriented product offering affordability, flexibility and no taxability! The ‘higher deductible’ provided by combo products reduces the LTC premiums for a more price efficient way to protect against LTC expenses. Combining two products allows the policy and riders to always provide annuity values for retirement income or LTC insurance benefits, depending on the policyowner’s needs in the future. Beginning January 1, 2010, the PPA tax changes allow LTC premiums to be paid from untaxed annuity distributions and the LTC benefits paid will be tax free.”

Guaranty Income Life Insurance Company was founded in 1926 and is a Legal Reserve Insurance Company currently licensed in 31 states. In addition to cost-effective annuity, life insurance and long-term care programs, Guaranty offers products and services to help families meet their financial needs of wealth creation and protection today and in the future.

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