Radius

1. Radius SM Insert Your Name Insert Agency Name For Producer Training Use Only

2. Agenda • Product Rationale for CA/FL/PR • Product Overview • Radius Riders • I & P limits • Rate Information • Agent Compensation • Sales Support • Competition

3. Radius Rationale for California, Florida and Puerto Rico - Financial Results • The financial impact of higher than expected claims in California, Florida and Puerto Rico has been substantial. • Higher than expected claim costs have cost MassMutual $70 million over the 1996 - 98 period. Actual Expected A/E ClaimsClaimsRatio CA/FL/PR $203 $133 153% Other States $495 $522 95%

4. Radius Rationale for California, Florida and Puerto Rico - Financial Results • CA/FL/PR morbidity experience has consistently run 50% higher than the other states. • The CA/FL/PR experience exceeds the other states “across the Board” - by gender, waiting period, benefit period, occupation class for both individual and multi-life. • This is true for new products, dispelling the myth that we are suffering from past sins. • This is true for recent issue years even though we have tightened underwriting. • This is true for both MML and CML blocks. • Our competitors have also suffered large CA/FL/PR losses and have taken similar steps to address the business problem.

5. Radius Rationale for California, Florida and Puerto Rico - Pricing Strategies • Recognition that CA/FL/PR subsidy cannot be eliminated solely by increasing premiums. • It would require a 55% rate surcharge to eliminate the CA/FL/PR subsidy. • Reduce risk. Emphasis is placed on reducing benefits versus only increasing premiums. • Maintain higher compensation. • We could have reduced compensation to maintain lower rates, but Field input showed a preference to maintain higher comp with higher rates. • Maintain a competitive position in CA/FL/PR that is comparable to our position in the other states while maintaining sales growth consistent with other states. • Be competitive in the multi-life market.

6. Radius: Base Product • Non-cancelable & guaranteed continuable to age 65 • Base policy provides cost-effective total disability only protection • Your occ. protection if not working in a new job • Extended Partial benefits by rider with strong recovery benefits • Radius and riders available to all occupation classes • Benefit periods: 2 years, 5 years, or age 65 • Issue ages: 18-64 • 24 month mental & nervous limitation per disability • Unisex for multi-life sales • Sex-distinct rates for individual and association

7. Definition of Total Disability • Policy must be in force • Condition caused by a sickness or injury • Insured cannot perform the main duties of his/her occupation • Insured is not working at any other occupation • Insured must be under a doctor’s care

8. Waiting Periods • 60 days • 90 days • 180 days • 365 days • 730 days* *Not available in PA, NJ, CT, VT,CA, AR, ID, IA, KS, NJ, OK, PA, SC, VA, WA, WV

9. Mental & Nervous Limitation • 24 month per claim mental disorder • Full benefits paid if hospitalized • No aggregate benefit limit over life of policy • Limitation may be removed if: • Employer paid • 20+ life multi-life case • 10% extra premium • Prior underwriting approval through Maximum Benefit Period Endorsement

10. Waiver of Premium • After 90 days of total or partial disability • Premiums waived for length of disability • Premiums paid during that 90 days will be refunded

11. Rehabilitation • Reimbursement for covered expenses incurred • Pre-approved rehabilitation program • Mutually agreed upon • No stated maximum

12. Extended Partial Benefit Rider Purpose: Provide partial benefits for a long duration if return to same or new work, but experience at least 20% income loss. • Available to all occupation classes • Benefit period same as base policy • Benefit amount based on loss of earnings (min. 20%) • Includes full recovery benefit • Issue age 18-60 • Required w/ GSR

13. Recovery Benefit • Included with Extended Partial Disability Rider • Continued loss of income of at least 20% • Demonstrated relationship required • Insured is fully recovered and working in his/her occupation • Maximum benefit period applies

14. Limitations & Exclusions • Radius does not cover disabilities caused or contributed to by: • War, declared or undeclared • Normal pregnancy or childbirth, except as defined under the definition of sickness in the policy • Undisclosed pre-existing conditions • Policy may be suspended if client enters military service • Mental disorder limitation, unless endorsement attached

15. Radius Riders • Social Insurance Rider (SIR) • Partial Disability (6 months) Benefits Rider • Extended Partial Disability Benefits Rider • Short Term Rider (STR) • Future Insurability Option (FIO) • Cost of Living Adjustment Rider (COLA) • Group Supplement Riders (GSR) • HIV Rider • Maximum Benefit Period Endorsement • Managerial Duties Endorsement

16. Radius RidersAvailable in FL/PR Maximum Benefit Period Endorsement Managerial Duties Endorsement HIV COLA FIO STR GSR Extended Partial Rider Partial (6 Mos.) Social Insurance Rider (SIR) Radius Base Coverage

17. Social Insurance Rider (SIR) Purpose: Lower premium by part of policy benefits contingent upon not qualifying for: • Social Security • State Cash Sickness • Worker’s Compensation • We pay if they do not • Maximum benefit $1,350/month • Optional for 5A, 4A, 3A* • Required for 2A and A • Issue age 18-60 • Not available in CA • Required in all classes in RI, HI, NY, NJ, and PR

18. Partial Disability Benefit Rider Purpose: Provide partial benefits for a 6 month duration, but return to work part time and can perform some, but not all duties of occupation. • Benefit period: 6 months • Benefit amount: 50% of monthly benefit • All occupation classes • Issue age: 18-60

19. Short Term Rider (STR) Purpose: To close short term gaps of existing group LTD coverage • Waiting period: 60, 90 and 180 days • Benefit Period: to six months*, to one year** • Up to 2 STR’s may be on same policy • All occupation classes • Issue age: 18-64 *Not available in VA **Not available in VT

20. Future Insurability Option Rider (FIO) Purpose: To provide future benefit increases to keep in line with salary increases without evidence of medical insurability. • Max. rider “pool” = 2 x Base amount, up to a max. of $5,000/monthly benefit • The FIO “pool” can be increased during any option period prior to age 55 with full underwriting • Series rates in effect at the time of increase • Issue ages 18-55 • Option periods annually up to age 60 • Option date can be different than anniversary date • Available to all Occ Classes

21. Cost Of Living Adjustment Rider (COLA) Purpose: To increase benefits while disabled and on claims to keep pace with inflation. • Provides 3% compounded increases after 12 months of disability • No cap on increases over life of policy • Issue ages: 18-60 • Available to all occupation classes • Only available w/ age 65 Benefit Period • Increase Buy-Up Provision

22. Group Supplement Rider (GSR) Purpose: To enhance partial benefits when “wrapping” around a group LTD plan. • Provides a benefit if insured has min. 20% income loss due to disability • GSR A: Pays benefit if insured working in regular occupation • GSR B: Pays benefit if insured working in a new occupation • Issue ages 18-60 • Benefit period must be to age 65 • Not available with Managerial Endorsement • Extended Partial Required

23. HIV Rider Purpose: To provide Medical and Health Care Professionals with a transitional benefit while making a career decision. • Provides a monthly benefit if tested positive for HIV • Whether symptomatic or not • Regardless of how virus was contracted • Available to Medical & Health Care Professionals Only • Waiting period: None • Benefit period: 24 months • Benefit amount: $2,000-10,000/month • Issue ages: 18-60 Not available in NY, NJ, PA, GA, IN, ME, MI, MN, NC, NH, ND, OR, VA, WA, WI

24. Managerial Duties Endorsement Purpose: Allows more favorable occupation class for individual with strong managerial responsibilities and with less than 25% manual duties. • Changes definition of disability to focus on critical managerial duties (difficult to replace) instead of manual duties (easy to replace)

25. Age 65+ Contract Purpose: To provide a contract for applicants ages 65-70 on a new issue basis or as a conversion. • 30 hours per week and not disabled • Total disability protection only • Benefit period: 2 years • Premiums conditionally renewable annually • Maximum issue amount: $7,500/mo. • Maximum Participation Limit: $10,000/mo.

26. Individual & Association Limits for CA/FL/PR Occ Class Max. Issue Max. Part. Max. Issue Max. Part. 18 - 60 18 - 60 61+ 61+ 7,500 10,000 7,500 10,000 5A 4A 10,000 7,500 10,000 7,500 3A 7,500 10,000 7,500 7,500 2A 7,500 7,500 5,000 5,000 A 5,000 7,500 2,000 2,000

27. Multi-Life Limits for CA/FL/PR Occ Class Max. Issue Max. Part. Max. Issue Max. Part. 18 - 60 18 - 60 61+ 61+ 10,000 15,000 10,000 10,000 5A 4A 15,000 10,000 10,000 10,000 3A 10,000 10,000 10,000 10,000 2A 8,000 10,000 5,000 5,000 A 5,000 8,000 2,000 2,000

28. I & P Limits for CA/FL/PR

29. Radius Pricing Dividends • Radius is a dividend paying contract • Dividends, if available, become payable at the end of the 6th year • Dividends are projected to be 10 percent per year for the life of the policy

30. Radius 5A Rates

31. Radius 4A Rates

32. Radius 3A Rates

33. Radius Discounts First Year Life/DI Discount • 5 percent discount applied to first year annual DI premium • Supports cross sale of life insurance and DI • Full compensation is applied to reduced first year premium DI Sale Life Sales

34. Radius Discounts Multi-Life Discounts 3 - 20 lives Employer Sponsorship 50% 1st Year Compensation 15 percent 21+ lives Employer Sponsorship 21-100 lives Employer-pay 40% 1st Year Compensation 25 percent 100+ lives Employer pay only 30% 1st Year Compensation 35 percent

35. Radius Career Compensation FYC: Ages 18 - 64 : 50% Renewals: 8 - 10 Years 2 - 7 11 + Individual & 15% Multi-life 10% 5% 2% 25% Multi-life 7% 2% 2% 5% 25% Multi-life 2% 2%

36. Radius CareerCompensation • Bonus: • Tier 1 - Production of $20,000 - $39,999 in first-year premium = 5% supplement • Tier 2 - Production of $40,000 - $59,999 in first-year premium = 7% supplement • Tier 3 - Production of $60,000 - $79,999 in first-year premium = 9% supplement • Tier 4 - Production of $80,000 and above in first-year premium = 12% supplement

37. Sales Support

38. You Are Your Competition • You have the opportunity to sell an industry-leading portfolio with extremely strong compensation. • In most cases, according to MassMutual clients, your competition is not offering your clients DI. • If you don’t offer it to your clients, then You are the roadblock to your client having DI or a hole in their protection portfolio.

39. We Want Your Sales • Your clients need DI. • Although morbidity is a problem in FL/PR, strong Field Underwriting will drive the future of sales in your state. Your efforts in this respect DO make a difference. • Bottom Line: Be meticulous with your DI sales, but do sell DI. It’s a win-win for both you and your client.