Supplemental Individual Disability Insurance Plan Help protect more of what you earn

2 Assessing the need What is your most valuable asset? –Your home? Your car? –It’s your ability to work and earn an income! What is individual disability insurance? –A means of replacing a portion of your income when you can’t work or have a reduced capacity to work because of an illness or injury that is covered by your policy.

3 What’s your risk? At age 30, a man is seven times more likely to become disabled than to die. Even at age 50, the odds of becoming disabled are more than double the risk of dying. At age 40, you have a 43% chance of experiencing a long term disability before you are age 65. JHA Disability Fact Book, Fourth Edition, Almost 3 in 10 workers entering the work force today will become disabled before retiring. Social Security Administration, Fact Sheet, January 31, Nearly one in five Americans will become disabled for a year or more before the age of 65. Life and Health Insurance Foundation for Education (LIFE), “Disability Insurance: Who Needs It?”, May 2007.

4 Your group long term disability coverage Is it enough? Benefits are taxable* Coverage terminates if you leave employment Coverage up to [60]% of salary, but taxes could reduce that to less than 50% (see top chart) [Are commissions and/or bonus comp covered? (see bottom chart)] Benefits could be offset by Social Security and workers’ compensation *Under current tax laws, if the employer pays the premium. All values provided for illustrative purposes only.

5 Does a coverage gap exist? Overall, group LTD benefits offer very good basic protection, but coverage gaps naturally exist… –Definitions of disability are limited –Benefits are often capped –Benefits are taxable if paid for by company –Benefits are offset by other entitlement program benefits (Social Security, Workers Comp, State Aid) –Coverage is not portable –Many times little to no protection for commission and/or bonus compensation –Loss of retirement contributions if terminated due to a Long Term Disability

6 Supplemental individual disability insurance can help... Protect your income Provide additional financial security Provide return-to-work support

7 Supplemental individual disability insurance features Plan design Income replacement, up to [75]% of your total income Benefit period: [2 Years][3 Years][5 Years][to age 65][to age 67] Elimination period: [60 days][90 days][180 days][365 days] [Additional catastrophic disability benefit can pay in event of certain very serious disabilities that are likely to increase your living expenses] Policy effective date: Other features Premiums paid through convenient payroll deduction Tax-free benefits, since you pay the premium You own it – so you can take it with you if you change jobs Discounted premiums Non-cancellable coverage Option to exchange for a long term care policy between ages 60 and [70][75] EE IDI

8 Supplemental individual disability insurance features Plan design Income replacement, up to [75]% of your total income Benefit period: [2 Years][3 Years][5 Years][to age 65][to age 67] Elimination period: [60 days][90 days][180 days][365 days] [Additional catastrophic disability benefit can pay in event of certain very serious disabilities that are likely to increase your living expenses] Policy effective date: Other features You own it – so you can take it with you at the same discounted premiums if you change jobs Non-cancellable coverage Option to exchange for a long term care policy between ages 60 and [70][75] ER IDI

9 Group LTD Benefit $2000 Base Monthly Salary $ Non-taxable Supplemental Benefit - $750 $333 Group LTD Benefit After Taxes (28%) $1440 Group LTD Benefit After Taxes (28%) $1440 Non-taxable Catastrophic* Benefit $ How supplemental individual disability insurance works for you Here’s your solution! Bonuses/ Commissions 60% of Base Salary 39% of Income After Taxes *Insured must satisfy the definition of disability under the Catastrophic Rider to receive this benefit. For illustrative purposes only Assumes 28% tax bracket

10 Supplemental individual disability insurance Long term care Insurance $100/day Nursing Home 50% Home Care 90-day EP [3 year][6 year] BP Choice of inflation riders Rates based on attained age Option to exchange for individual long term care policy * Ages in TX Exchange between ages 60-70*

11 How much does it cost? Your premium is determined by your age occupation tobacco use [You have two primary options – –Maximum benefit option –Reduced benefit option] Additional benefit options available upon request

12 How do I apply? Enrollment options: –Paper kit –Self-Service via the Web –Telephone Apply online at –Telephone via our Call Center Apply by phone – call 1-8xx-xxx-xxxx

13 Limited underwriting Underwriting is guaranteed standard issue, contingent on answers to the following: For the period of time commencing 180 days prior to, and including, the date of this application: –(a) Have you missed 1 or more days of work, or been homebound or admitted to a medical facility, due to injury or sickness? –(b) Have you had any restrictions or limitations to your ability to work on a full time basis due to injury or sickness? You will be asked to meet additional requirements for catastrophic disability and lifetime continuation benefits (Option to exchange for individual long term care policy in CA).

14 Disclosure The policy or its provisions may vary or be unavailable in some states. The policy has exclusions and limitations which may affect any benefits payable. See the actual policy or your Unum representative for specific provisions and details of availability. This information is not intended to be a complete description of the insurance coverage available and some coverage options may not be available in all states. For complete details of coverage, please refer to Policy Form 600 (Policy Form 650 in CA). Underwritten by: Provident Life and Accident Insurance Company 1 Fountain Square, Chattanooga, TN In New York, underwritten by Provident Life and Casualty Insurance Company 1 Fountain Square, Chattanooga, TN New York Income Series Individual Disability multi-life policies: This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is 60%. This ratio is the portion of future premiums which the company expects to return as benefits, when averaged over all people with this policy. unum.com ©2008 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. EN-1129 (5-08)