Comprehensive Disability Income Choice Portfolio: Tailored Solutions for Every Client

Disability Income Choice Portfolio That Works for Me

Agenda • What’s New • Why Sell Our DI Products? • Which One Works for Your Client? • Benefits & Definitions • Product Summary • Rates/Competitiveness • Scenarios • Marketing • Winflex

What’s New • Choice of 4 product offerings: • Short-Term Accident Only • Short-Term Accident/Sickness • Long-Term Accident/Sickness • Business Operating Expense • One application for all products

Disability Income Choice Portfolio Why Sell Our Products?

Product Design • Portfolio of products fits almost any DI sales scenario • Flexible benefit options to tailor coverage to your clients’ needs • Single application for all products, including BOE • To Age 67 benefit period to support longer working lifetimes • Improved price competitiveness for long benefit periods and for females • No SIS (base coverage only) on short-term versions

Additional Benefits • Hospital confinement benefits rider up to $500 (X2 ICU) • Critical Illness Benefits rider up to $25,000 • Own Occupation Protection for Duration of Benefit Period • Preferential Rates:15% premium discounts for members of qualifying association group and self-employed individuals

Underwriting • Accident Only (Off-The-Job) • Simplified application process and 48-hour Express Underwriting – benefits up to $5,000 • Short-term Accident/Sickness (Off-The-Job) • 48-hour Express Underwriting for benefits up to $3,000 • Simplified Underwriting: $3,100 to $5,000 • Long-term Accident/Sickness (24-Hour) • Full underwriting

Underwriting • Updated Health Manual • Elimination of one-year wait for controlled high blood pressure • Expansion/Reformatting of Occupation Manual • Six occupation classes instead of only four, and 170 new occupations included • Lower income requirement for self-employed discount

Medical Underwriting

Disability Income Choice Portfolio Which One Works for Your Client?

Short-Term Accident Only • Target Market: • Ages 25-55 • Blue/Gray Collar • Household Income: $15,000 – $50,000 • Self-employed • Singles

Short-Term Accident Only • Issue Ages: 18 – 61 • Elimination Periods: 14, 30, 60 or 90 days • Benefit Periods: 3, 6, 12 and 24 months • Maximum Monthly Benefit Amount: $5,000 • Payroll Deduction Available

Short-Term Accident Only • Renewability • Guaranteed renewable to age 67 • Preferential Rates • 15% Discount* • Association Group • Self-employed • No Comp Offset *may vary by state

Short-Term Accident & Sickness • Target Market: • Ages 25 – 55 • Blue/Gray Collar • Household Income: $25,000 – $75,000 • Self-employed • Families

Short-Term Accident & Sickness • Issue Ages: 18 – 61 • Elimination Periods: 14, 30, 60 or 90 days • Benefit Periods: 3, 6, 12 or 24 months • Maximum Monthly Benefit Amount: $5,000

Short-Term Accident & Sickness • Renewability • Guaranteed renewable to age 67 • May continue to age 75 if Insured is working full-time • Preferential Rates • 15% Discount* • Association Group • Self-employed *may vary by state

Long-Term Accident and Sickness • Target Market: • Ages 35 – 55 • White Collar/Professional • Household income: $50,000+ • Mature Families

Long-Term Accident & Sickness • Issue Ages: 18 – 61 • Elimination Periods: 60, 90, 180 or 365 days • Benefit Periods: 2, 5, 10 years and to age 67 • Maximum Monthly Benefit Amount: $10,000 ($12,000 if SIS rider is added)

Long-Term Accident & Sickness • Renewability • Guaranteed renewable to age 67 • May continue to age 75 if Insured is working full-time Preferential Rates • 15% Discount* • Association Group • Self-employed *may vary by state

Disability Income Choice Portfolio Policy Base Benefits

Total Disability Benefits • During and after elimination period, due to an injury that is not covered by workers compensation, Insured is: • Unable to perform duties of regular occupation • Not engaged in any occupation for wage or profit • Receiving regular medical care STAO x STAS LTAS Short-term Accident Only Short-term Accident & Sickness Long-term Accident & Sickness

Total Disability Benefits • During and after elimination period, due to an injury or sickness that is not covered by workers compensation, Insuredis: • Unable to perform duties of regular occupation • Not engaged in any occupation for wage or profit • Receiving regular medical care STAO x STAS LTAS

Total Disability Benefits • During the elimination period and during the first 24 months following the elimination period, due to injury or sickness, the Insured is: • Unable to perform duties of regular occupation • Not engaged in any occupation for wage or profit • Receiving regular medical care • After the first 24 months following the elimination period, due to sickness or injury, the Insured is: • Unable to perform duties of any occupation because of education, training or experience • Receiving regular medical care STAO STAS x LTAS

Partial Disability Benefit • If an injury that is not covered by workers compensation prevents the Insured from performing duties of regular occupation for more than 50 percent of the time, the Insured must: • Be receiving regular medical care x STAO STAS LTAS

Partial Disability Benefit • If an injury or sickness that is not covered by workers compensation prevents the Insured from performing duties of regular occupation for more than 50 percent of the time, the Insured must: • Be receiving regular medical care x STAO STAS LTAS

Proportionate Disability Benefit • During the elimination period and during first 24 months following the elimination period, due to injury or sickness, the Insured must: • Be unable to perform duties of regular occupation • Have a loss of monthly income at least 20 percent of prior monthly income • Be receiving regular medical care • After the first 24 months following the elimination period, due to sickness or injury, the Insured must: • Be unable to perform duties of any occupation because of education, training or experience • Have a loss of monthly income at least 20 percent of prior monthly income • Be receiving regular medical care x STAO STAS LTAS

Survivor Benefit & Waiver of Premium Survivor Benefit • Pays beneficiaries lump sum equal to three times total disability monthly benefit Waiver of Premium • Waives premiums on policy and riders • Insured must be disabled for 90 days • Refunds any premiums paid during 90-day period x x x STAO STAS LTAS

Recurrent Disability • If a related disability occurs within six months of return to full-time employment, or if an unrelated disability occurs within 30 days of return to full-time employment: • It is considered to be a recurrent disability. • A new elimination period will not need to be satisfied • The same benefit period will continue x x x STAO STAS LTAS

Presumptive Total Disability • The Insured is presumed to be totally and permanently disabled if: • An injury results in complete and irrecoverable loss of: • Hearing, speech, sight, or use of both hands, both feet or one hand and one foot • Total disability benefits paid for full length of benefit period • Elimination period will be waived x STAO STAS LTAS

Presumptive Total Disability • The Insured is presumed to be totally and permanently disabled if: • Injury or sickness results in complete and irrecoverable loss of: • Hearing, speech, sight, or use of both hands, both feet or one hand and one foot • Total disability benefits paid for full length of benefit period • Elimination period will be waived x x STAO STAS LTAS

Terminal Illness Benefit • The Insured has the option to accelerate up to 12 months of disability benefits when diagnosed with a terminal illness • The policy terminates after this benefit is paid x x STAO STAS LTAS

Transplant Donor Benefits • Benefits will be paid on the same basis as any other sickness if: • The Insured becomes disabled as the result of a transplant of part of his or her body to the body of another person x x STAO STAS LTAS

Rehabilitation Benefit If the Insured is disabled and receiving disability benefits, he or she may be eligible to receive vocational rehabilitation services at our expense. x x STAO STAS LTAS

Disability Income Choice Portfolio Optional Riders

Hospital Confinement Accident Indemnity Benefits Rider • Pays DRB for each day the Insured is confined to a hospital due to an injury: • $125 • $250 • $350 or • $500 • 2 X DRB for ICU • Benefits payable even if not disabled x STAO STAS LTAS

Hospital Confinement Indemnity Benefits Rider • Pays DRB for each day the Insured is confined to a hospital due to an injury or sickness (after the first day): • $125 • $250 • $350 or • $500 • 2 X DRB for ICU • Benefits payable even if not disabled x x STAO STAS LTAS

Critical Illness Benefits Rider • When diagnosed with certain specific diseases, the Insured will be paid a lump sum of: • $5,000 • $10,000 • $15,000 or • $25,000 • The Insured does not have to be disabled to get this benefit x x STAO STAS LTAS

Critical Illness Insured Conditions • Alzheimer’s Disease • Blindness • Deafness • Heart Attack • Life-Threatening Cancer • Major Organ Transplant • Paralysis • Renal Failure • Stroke x x STAO STAS LTAS

Return of Premium Benefit Rider • Maximum issue age: 57 • Pays back either 50 or 80 percent of premiums minus claims paid*: • After 10 years • Does not include premiums for Critical Illness or Hospital Confinement riders • If the Insured dies or attains age 67 during a 10-year period, the company will pay a prorated share of the return of premium benefits *Subject to state approval x x STAO STAS LTAS

Social Insurance Supplement Benefits Rider • Pays a monthly benefit that is reduced dollar-for-dollar for other forms of social insurance such as • Social Security • worker's compensation, or any employer’s liability or occupational disease law • civil service and federal employee programs, including state-sponsored disability benefits • the Railroad Retirement Act. x STAO STAS LTAS

Future Insurability Option Rider • Maximum issue age: 51 • Increases the Insured’s base monthly benefit as his or her income increases, regardless of changes in health status. • Maximum increase: 2X base benefit • Base monthly benefit may not exceed $10,000 • Rider premium decreases upon exercise of benefit • Can be exercised once a year • Can increase up to 25% of original base each time x STAO STAS LTAS

Extended Own Occupation Disability Definition Amendment Rider Extends the Insured’s own occupation disability protection past 24 months, to the duration of the benefit period. x STAO STAS LTAS

Extended Proportionate Disability Benefits Rider Extends the maximum period for which proportionate disability benefits are payable past 24 months, to the duration of the benefit period. STAO x STAS LTAS

Cost of Living Adjustment Rider • Increases the Insured’s monthly benefit while disabled, so his or her benefits are not degraded by inflation • Monthly benefit will increase annually by the lesser of the percentage change in the CPI-U, or 5% x STAO STAS LTAS

Disability Income Choice Portfolio Business Operating Expense

Business Operating Expense (BOE) • Target Market: • Small Business Owners • Self-Employed • White Collar • Professional • Average Salary: $35,000+

Business Operating Expense (BOE) • Issue Ages: 20 – 59 • Elimination Periods: 30, 60, 90, 180 or 365 days • Benefit Periods: 12 and 18 months. Benefit periods may be restricted for some issue ages and occupation classes • Maximum Monthly Benefit Amount: $15,000 This amount may vary by income qualification and occupational classification

Business Operating Expense (BOE) • Renewability • Guaranteed renewable to age 65

Total Loss of Time Benefit • Benefits incurred during total loss of time will be paid if: - Insured is completely unable to engage in his or her occupation - Is not gainfully employed in another occupation

Recurrent Total Loss of Time • If further loss of time results from injury or sickness for which benefits have already been paid: • The maximum operating expense benefit and deductible period will be restored after the Insured returns to full-time work for a period of six consecutive months

Comprehensive Disability Income Choice Portfolio: Tailored Solutions for Every Client