Specialists in Income Protection and Disability Insurance for Business Continuation Founded in 2008 Licensed in all US states 100% Brokerage General Agency We are Underwriters & Advocates Who Is Fortify

What Carriers Do You Have Access To?

What You Will Learn Today 1.Why you should recommend Individual Disability Income (IDI) protection 2.Understanding the Risks 3.Common Causes of Disabilities 4.What are we protecting? 5.How to start the conversation 6.Understanding common objections 7.Sales ideas

1 It’s a great door opener … and relationship builder! 2 Upon a disability, it helps clients pay daily living expenses and bills, including premiums on other insurance products they have with you. 3 It helps diversify your portfolio offering and protect relationships … + attractive compensation. 4 It’s part of a Financial Planner’s due diligence. 5 Solutions are available in sought-after markets (e.g., business owners and higher-income individuals) Top Reasons to Sell IDI

Why Protect Income?

During the course of your career, you are three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance. 1 Approximately 30 percent of people aged 35 to 65 will suffer a disability for at least 90 days. 2 48% of all home foreclosures are due to serious medical problems Health Insurance Association of America, Health Insurance Association of America, The New York Times, Feb National Underwriter, May 2002 The need for income protection

People are living longer % -73% -29% -48% -27% -32% Hypertension Heart Disease Diabetes All Four Source: National Underwriter, May 2002; The JHA Disability Fact Book – 2003/2004 Edition – Need for Disability Insurance Cardiovascular Mortality …

But we are also disabled longer % -73% -29% -48% -27% -32% Hypertension Heart Disease Diabetes All Four +70% +44% +36% +55% Source: National Underwriter, May 2002; The JHA Disability Fact Book – 2003/2004 Edition – Need for Disability Insurance Cardiovascular Vs. Morbidity

Average Length of Long-Term Disability Carrier Claim JHA 2004 Disability Rate Study & Risk Management Survey (74% Market Share) ConditionLength of Claim Fibromyalgia100 months Mental Disorders99 months Aids/HIV98 months Cancer81 months Circulatory Disease76 months Nervous System Disease69 months Injury64 months Respiratory Disease45 months

How Disability Happens * Source: Principal Life Disability Insurance claims incurred as of March The above is for illustration purposes only and is not intended as an inclusive representation of all claims. Source: Principal Life Disability insurance claims incurred as of March The above is for illustration purposes only and is not intended as an inclusive representation of all claims.

The Income Protection Conversation It’s up to you to talk about income protection. If you don’t, someone else will. Compensation potential Producers who take a comprehensive approach with clients earn 30% more than those who do not. 3 Market potential 67% of the private sector workforce has no long-term disability insurance. 1 Nearly 50% of those who look into income protection, after being approached about it, buy some type of policy. 2 1 Social Security Administration, Fact Sheet, March LIMRA MarketFacts Quarterly, Principal Life Insurance Company retail sales data

Potential Earnings to Age 65* AgeAnnual Income $50,000$100,000$150,000 30$3,023,104$6,046,208$9,069,312 35$2,378,771$4,757,542$7,136,312 40$1,822,963$3,645,926$5,468,890 45$1,343,519$2,687,037$4,030,556 *Assumes 3% annual salary increase Protecting The Most Valuable Asset

What Does Income Protection Provide? Security Comfort Peace of mind

Starting the Conversation What would happen if you became too sick or hurt to work? What’s your plan? What is your most valuable asset? Do you realize what your potential earnings are to retirement? When was the last time you reviewed your Income Protection plan? Who pays your bills today? Who would if you became too sick or hurt to work? What other things do you insure? How do you pay for that insurance? How would you pay for that insurance without an income?

Most Common Objections I Can’t Afford It Premium coffee a day Date night Lunch every day Smart phone Why Do I Need It? Illnesses, not accidents Sharing a real story Divide your income in half I’d Never Use It Life insurance Auto insurance Home insurance

Sales Pieces to Share with Clients Tools available that cover the top three objections: “I won’t need it – I won’t get disabled” “I can’t afford it” or “It’s not worth it.” “ I have other coverage so I’m protected”

Which Job would you prefer? JOB AJOB B Annual salary $100,000 if working (before taxes) Annual salary $98,600* if working (before taxes) $0 Income while too sick or hurt to work $60,000* Income while too sick or hurt to work from your DI insurance policy (after taxes) If you become too sick or hurt to work tomorrow, which job would you rather have? Would you rely on co-workers to hold a fund- raiser for you? Plan ahead with income protection. *100,000 less $1,400 in hypothetical annual disability income insurance premiums. Premiums and $5,000 monthly benefit amount depend on various factors. Your local representative can illustrate the exact amount you’re eligible for based on current underwriting guidelines. This a hypothetical example only.

Can you live on 42% of your income? Is employer-provided group disability insurance enough? Chart based on $5,000 gross monthly income ($60,000 annually), with 60% Group Long Term Disability program, assuming a 30% tax bracket for Federal, State and FICA.

Individual DI insurance can protect more of your income Full paycheck. Healthy and working. Group LTD benefits before taxes Group LTD benefits after taxes For the cost of 2 to 6 pennies… Group coverage is a great start, but often not enough

Use ? “I’ll Never Use It” 2 – The Principal Financial Well-Being Index, First Quarter | 3 – Data from model year introduction 2008 through July 2010, Highway Loss Data Institute. | 4 – Data from ISO, a Verisk Analytics Company. | 5 – Average premium for 2009, National Association of Insurance Commissioners. | 6 – Average premium among top Individual DI insurance carriers (Principal, MetLife, Standard, Guardian and Ameritas) for $1,000/month benefit, 45 year-old male, Colorado resident, non-smoker, $60,000 annual income, To age 65 benefit and Your Occupation periods, 90-day elimination period, non-cancelable. | 7 – $30,000 is the total payout of a $1,000/month benefit policy claim that pays for 2 ½ years, the average long-term disability claim length (2010 Gen Re Fact Book). | 8 – The policy offers the potential to pay ongoing monthly benefits until the end of the benefit period; To age 65 or 67 benefit period is the most common

Q & A

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