Simply Unum How will you navigate the changing benefits landscape?

2 Demographic trends in employee population

3 Impact of healthcare costs on employees Since 2000, premiums for employer-sponsored health insurance in the U.S. have been rising four times faster on average than workers’ earnings 1, and the percent of workers participating in their employers’ plans has been dropping. 2 *Source: Unpublished Employee Study data, LIMRA International, The Henry J. Kaiser Family Foundation, "Employee Health Benefits: 2007 Annual Survey," September The Federal Reserve Bank of San Francisco Economic Letter, “Health Insurance Costs and Declining Coverage,” # , September 29, 2006, p. 2. Affordable health insurance Enough money for retirement Enough money for healthcare during retirement Enough money in case of critical illness Paying for medical care Enough money in case of disability Providing for a spouse/family if employee dies unexpectedly 0%25%50%75%100% 90% 82% 79% 77% 75% 74% 60% Top employee financial concerns * Affordable health insurance

4 Source: “U.S. Worksite Sales Report Carrier Results for 2006,” Eastbridge Consulting Group, Inc., May As a result, the shift to voluntary Average $ in billions Industry inforce premium — worksite products $ $6.4 $7.4 $8.0 $9.4 $11.7 $13.2 $14.6 $15.6 $17.2

5 We see the trend: A turn toward employee funding Unum STD Sales 19% 81% % 47%

6 So how do these trends impact our business? Increasingly diverse workforce Need for benefit variety Multiple plans to manage (employer- and employee-funded) Need to make administration easy Healthcare costs escalating. Increased focus on productivity Need for cost efficiency Benefit communication challenges Need to empower employees to make educated choices

7 Wouldn’t if be great if you could see a better road ahead? ■ Effectively communicated benefit choices ■ Guarantee issue/simplified underwriting ■ Streamlined group and voluntary ■ All products enrolled together ■ One bill for all products ■ Salaried enrollers ■ New hires enroll online or through Call Center

8 Introducing Simply Unum All on a single platform with the superior service you expect from Unum Simplified administration Minimizes the burden of managing the plan Cost-effective solutions Stretches the benefits budget $ Meets the needs of a diverse workforce Effectively communicated benefit choices

9 Simply Unum is...

10 Simply Unum helps you grow your business helps you... Simply Unum Increase sales Strengthen your relationships with clients Reduce the administrative burden on your team

11 Simply Unum fits within our overall offering

12 Simplified administration for you and your customers

13 One website ■ Customers are automatically set up when plan is sold ■ All administration is online, including plan history Easy implementation ■ Information submitted from the quote is “transferred” to the platform ■ Customers can complete set-up questions in 10 minutes ■ The set-up can be delegated to brokers Help is always one phone call away. Single platform for group and voluntary

14 Single platform for group and voluntary ■ Billing in arrears—customers do not have to pay ahead ■ New tools make bill reconciliation quick and simple Automatically produces payroll deductions for all products Automatically tracks recent and pending changes ■ Easy-to-update employee information for all benefits Make your changes once—they are applied throughout One bill and one payment

15 New claims services for employers and employees ■ Employees can file online or over the phone ■ Employers receive an alert when a disability claim is filed, and complete their portion online ■ Employers can file a group life claim online, on behalf of the beneficiary ■ Employer and employees can keep track of claims through a robust online claim-tracking service Easy to file, easy to track

16 ■ Experienced service reps with extensive training ■ Superior service delivery focused on first-call resolution ■ Hours of live support 8:00 am – 11:00 pm M-F EST ■ Enables a sense of customer intimacy—we know who you are, and why you might be calling ■ Ensures a seamless experience for you and your customers ■ Automatically routes calls to the right area ■ Provides service representatives with the up-to-date information for all of their customers’ benefits Enhanced service Service is always one call away for all benefits and all questions. Features advanced customer relationship management (CRM) technology

17 Enhanced service Local support to help you grow your business ■ Sales support staff—expert help for your Simply Unum sales ■ Enrollment manager—recommends and executes effective enrollment strategies ■ Account manager—dedicated Simply Unum expert to assist you and your support staff

18 Easy administration and superior support

Unum’s enrollment solutions Enrollment your way

20 Effective employee communications

21 Effective pre-enrollment communications ■ Posters ■ Payroll stuffers ■ and intranet content ■ Print and electronic formats ■ PowerPoint presentations for group and one-on-one meetings ■ CEO endorsement letters ■ Brochures and flyers ■ Spanish translations available ■ State-specific versions available Education, communication means better decision- making, improved participation, fewer questions

22 Pre-sale education differentiating economical readable engaging simple motivating

23 Full-service enrollment support Enrollment your way Any combination Web self-service Group meetings One-on-one guidance Telephonic

24 Enrollment timeline ■ Group and voluntary enrolled from a single census ■ Effective dates can be staggered to permit adequate time for employee communication and enrollment For example: Group employer-paid: June 01 Voluntary: August 01 Pre-enrollmentEnrollmentPost-enrollment 10 business days10-15 business days30 business days Enrollment periods are typically scheduled for 2-3 weeks A minimum of 15 business days is required from the end of the enrollment to the effective date

25 Enrollment benefit summary ■ Designated enrollment manager works with you and your client throughout the process. ■ All types of enrollment driven by our proprietary enrollment system.

26 New employee enrollment ■ New employees can enroll for all Simply Unum coverages using one quick and efficient process. ■ System will guide plan administrator. ■ Web or telephonic with “live” person support. ■ Plan administrator notified when an employee enrolls, the payroll deduction amount, and when to begin the deduction. By completing a new hire information screen, the plan administrator sets everything in motion.

27 Efficient new hire enrollment New employee will be added automatically to your statement.

28 The advantages of Simply Unum enrollment ■ Re-entering data to set up enrollment system ■ One brochure per product ■ Paper intensive, incomplete information, incorrect rates ■ U/W delays (E of I processing impacts on first bill) ■ New hire — Paper forms to employees, HR collects paperwork and deductions, etc. ■ Given paper approach, incorrect deduction amounts entered Industry standard ■ Automated case set-up process ■ Customer-centric enrollment communications ■ Simply Unum U/W approach ■ Enhanced electronic enrollment options ■ Innovative new hire enrollment process (perpetual) ■ Seamless payroll deduction Simply Unum

Simply Unum in the real world

30 Simply Unum annualized premiums

31 About the customer Manufacturing company 40 employees Average annual salary — $42,320 Average age — 39 About the broker ■ Traditional group broker focused primarily in the core market ■ Avoided VB products in the past due to their views of inconsistent service ■ Additional revenue potential from VB Integrating group and voluntary benefits — Simply Unum case study

32 ■ Intrigued with the Simply Unum platform because of structured service and administration capabilities, particularly consistent billing ■ Unum Enroll: Unum employees do not receive incentive compensation based on enrollment results An enrollment manager provides control over the entire enrollment process ■ VB products were viewed by the employer as value-added to the overall benefits program ■ Packaged pricing was very attractive Why Simply Unum

33 Enrollment results ■ Two days of 1 x 1 enrollments and two days of telephonic enrollment ■ Employees seen: 40 (100% of total employee population) ■ Employees participating: 30 voluntary participants ■ Employees participating/employees seen: 75%

34 The power of the full portfolio The Results Sold group STD, group life and AD&D, group voluntary life and AD&D, accident and critical illness Annualized premium Overall participation Average annual premium per policy STD$6,919100%$173 Group life/AD&D$1,440100%$36 Group voluntary life/AD&D $4,97440%$310 Accident$8,86660%$369 Critical illness$2,65215%$442 Total$24,851

35 How Simply Unum benefits you ■ In the first year, voluntary products increase broker revenue by 356% ($5,830/$1,635) ■ In years 2-10, broker revenue increases by 223% ($1,865/$835) ■ In years 11+, broker revenue increases by 213% ($1,776/$835)

Q & A and what’s next