Group LTD with Conversion Program Getting Off on the Right Foot Group LTD with Conversion Program Note to Presenter: This short presentation is intended for use with an institution director with influence on having a Group Conversion Program. It should take about 20 minutes to deliver – no more than 30 minutes. If you have a rep or agency disclosure, please add it to the last slide. After introductions, say: Thanks for letting me come today. I want to talk today about a program that I think will be of great interest and benefit to the students, residents, and fellows in your program. John Q. Agent Agency Name

Unique Benefit Program A Unique Disability Benefit Program for Your Students, Residents and Fellows High quality Group Long Term Disability (LTD) benefits during residency/student years Opportunity to convert to an individual disability insurance policy upon completion without medical underwriting We all know just how much your students, residents and fellows have invested to get to where they are now. They’ve got a bright future ahead. However, it’s important for them to protect their income both now and as it grows should they suffer an illness or injury that would prevent them from being able to work. I want to talk about ensuring that your program participants have high-quality protection during their time as students, residents, or fellows …… As well as the opportunity that this coverage presents for them to convert it to an individual policy when they leave your program. And, there’s no medical exam required to convert the policy.

Advantages Residency Program Lower initial cost during residency Quality benefit provisions to meet disability needs No medical exam necessary (Choose from this slide, or the next one, depending on what type of program you’re targeting.) There are a number of advantages to getting disability insurance at this point in their lives. First, cost is lower while young: Age is an important factor in determining the amount the insurance will cost — And buying at a younger age lets them lock in a lower premium. Second, our coverage is excellent, including the features and options that today’s young medical professionals want and need. Another advantage is that there’s no need for a medical exam.

Advantages Student Program Lower initial cost during student years Quality benefit provisions to meet disability needs No medical exam necessary There are a number of advantages to getting disability insurance at this point in their lives. First, cost is lower while young: Age is an important factor in determining the amount the insurance will cost — And buying at a younger age lets them lock in a lower premium. Second, our coverage is excellent, including the features and options that today’s young medical professionals want and need. Another advantage is that there’s no need for a medical exam.

Group LTD Plan Features Definition of disability Covered disabilities Elimination period: 90 or 180 days Benefit duration: up to Social Security’s normal retirement age Partial disability: 50% offset with earnings Work incentive benefit Definition of Disability: For the first 2 years of benefits, covered as a medical resident – thereafter, as a doctor of medicine. Covered Disabilities: Accidents and Sickness 24 hour coverage Maternity Mental and emotional disorders/alcohol and drug abuse (limitations apply) Benefit Duration: The benefit duration is how long claimants will continue to receive these payments while they are disabled; benefits may continue for up to Social Security’s normal retirement age. Partial Disability: 50% offset with earnings. The resident does not have to be totally disabled throughout the elimination period to qualify for benefits. The partially disabled claimant’s benefit payments are then reduced by 50% of his or her current monthly earnings. Work Incentive for Partial Disability: A partially disabled claimant may receive up to 100% of his or her prior income from all sources for the first 12 months; Guardian will not reduce the benefit by the emloyee’s part-time earnings. If the total exceeds 100%, Guardian will deduct only the excess from the benefit. .

Group LTD Plan Design Options 60% or 70% of salary, or flat $3,000 monthly benefit (before benefit offsets) Delayed cost of living adjustment Survivor benefit Benefit Percentage: 60% or 70% of a resident’s basic monthly earnings, or flat $3,000 per month (before benefit offsets). For dental and veterinary students, a flat $2,000 per month. Delayed Cost of Living Adjustment (COLA) Benefit: Flat 3%, unlimited adjustments, COLA payments beginning on July 1, after 48 monthly payments and every 12 months thereafter. Survivor Benefits: Payable to a survivor when an insured dies while eligible for benefit payments and after having been disabled for at least 6 months. Benefit is 3 times the amount of the last net monthly payment received (Paid in a lump sum).

Group LTD Plan Design Options (cont’d) Student loan payout benefit* Additional benefit for severe functional disabilities, either: Lump sum benefit** or Additional monthly benefits Loan Payout Benefit: Guardian will make regularly scheduled monthly benefits for the repayment of student loans, while the insured remains functionally disabled*, up to a maximum of $100,000. (Higher amounts are available.) Lump Sum Benefits: Benefit amount payable when we accept proof that an insured individual is functionally disabled*. Benefit payable is $5,000. Critical disability supplement options Additional 20% of monthly earning up to $1,000 (available with flat $2,000 option, 60% or 70% salary plan) Additional 30% of monthly earnings up to $3,000 (available only with 60% or 70% salary plan) Additional 40% of monthly earnings up to $3,000 (available only with 60% salary plan) * Functional Disability Definition Applies: Functional disability means that, due to a sickness or injury, an eligible program participant: (a) is unable to perform two or more activities of daily living without continuous assistance; or (b) cognitively impaired and requires verbal cuing to protect him/herself or others. *Not available in all states. **Functional Disability Definition applies.

Group LTD Advantages Ease of administration – single long term disability policy issued to plan holder Disability claim management services Option to convert to individual disability insurance without medical underwriting upon completion of program We make the administration of the plan simple and easy with a single policy issued to the plan holder. We have excellent claim management services. And particularly important is the fact that when your (students, residents, or fellows) complete their program, they can convert the coverage to an individual policy that they can take with them wherever they go. No medical exam will be required.

Advantages Individual Disability Income Insurance Simplified underwriting for individual disability insurance with no medical or financial questions Guaranteed premiums: Level Graded Coverage is portable As your program participants complete their program, their busy schedules become even more hectic as they prepare for the next phase. Being able to convert their group LTD to individual coverage that they can take with them is very convenient. Not having to hassle with medical and financial questionnaires and so forth makes it easy and simple. There are several choices for how the coverage can be paid for. We find that some choose level premiums, that remain the same for that particular amount of protection. Graded premiums permit an individual to begin coverage paying a lower premium and then have the premiums rise later, when their income has grown. The portability of the coverage is important because your graduates may be heading in so many different directions. And because the policyholder “owns” the policy with individual coverage, they can take the coverage with them even if they change jobs multiple times in the years ahead.

Advantages Individual Disability Income Insurance (cont’d) Coverage cannot be terminated before age 65 and is renewable for life if working full time. Policy features guaranteed not to change Includes coverage for total disability Optional coverage for residual disability Two other important elements of our coverage are that it is non-cancellable and guaranteed renewable. This means that your policy can’t be terminated, and the coverage is renewable for life if you’re working full-time. You can rest assured that your premium rates will not be changed as long as the premiums are paid on a timely basis. And the provisions of the policy cannot be changed as long as premiums are paid on a timely basis. The policy includes coverage for total disability — This is when you’re completely unable to work. Now sometimes, an illness or injury doesn’t cause a total disability but does limit your ability to work, which results in decreased income. Or you might have suffered a total disability and now you’ve returned to work, but you’re not back at your pre-disability earnings. For situations like these we offer an option for what’s called residual disability.

Individual Income Insurance Features True own occupation definition of total disability Covered disabilities Injury or sickness Incurred on or off the job Covered Disabilities: Injury and Sickness Disabilities incurred on and off the job Benefits for disabilities caused by mental and/or substance-related disorders are limited to 2 years during the life of the policy, unless the insured is permanently confined to a hospital for treatment. Definition of Disability: The policy offers true own occupation coverage to MDs, dentists and veterinarians.

Individual Income Insurance Features (cont’d) Elimination period: 3 months* 6 months, or One year Competitive monthly maximums Combination of base plus, SIS, Student Loan Protection and/or FIO Benefit duration: 2 years 5 years, or To age 65 (but not longer than the group LTD period) period Elimination Period Choices: Three months, six months or one year. The elimination cannot be shorter than the Group LTD contract. Monthly Maximums: Maximum monthly indemnity is $4,000 for medical residents (and it can be $5,000 with prior Group approval.) And it’s $2,000 for dental and veterinary students. Monthly indemnity may be a combination of base (at least $200) plus Social Insurance Substitute (SIS), Student Loan Protection, and/or Future Increase Option (FIO). Benefit Duration: Read slide. *But not shorter than the group LTD period

Individual Income Insurance Features (cont’d) Optional riders available: Partial Disability Benefit Future Increase Option Social Insurance Substitute Option for Student Loan Protection For more detailed information, as well as exclusions and limitations that may apply to the individual disability income policies, please carefully review the material in your information package. Due to periodic policy changes, note that the individual conversion policy features and costs discussed today may vary at the actual time of conversion.

Thank you for letting me come today for this discussion Thank you for letting me come today for this discussion. Do you have any questions? IMPORTANT NOTE TO PRESENTER This presentation is for the solicitation of the following Group Conversion Programs only: Medical Residency Programs Dental Student Programs Veterinary Student Programs The presentation may be used when you present the program to the directors of the these programs who are considering the installation of Guardian Group LTD AbilityGuard with the “conversion feature” for their institutions.

If you have a rep or agency disclosure, please add it to this slide. Individual disability insurance products underwritten and issued by the Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY or provided by Guardian. Product provisions and availability may vary by state. Optional riders are available for an additional premium. The Guardian Group LTD Plan limits the duration of payments for long-term disabilities caused by mental or emotional conditions, or alcohol, or drug abuse. We do not pay benefits for charges relating to a covered person: taking part in any war or act of war (including service in the armed forces); committing a felony or taking part in any riot or other civil disorder; or intentionally injuring themselves or attempting suicide while sane or insane. We do not pay benefits during any period in which a covered person is confined to a correctional facility, an employee is not under the care of a doctor and the employee’s loss of earnings is not solely due to a disability. This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. Policy features may vary by state. If the plan is new (not transferred): This LTD plan does not pay charges relating to a pre-existing condition, unless the disability begins after the employee has been insurance for the specified number of months. Please refer to the plan documents for specific time periods. A pre-existing condition includes pregnancy and any condition for which an employee, in the specified period prior to coverage under this plan, consults with a physician, receives treatment, or takes prescribed drugs. GP-I-TD2K-1.0, et al. Rep or agency disclosure (if any) Pub4465BL-PPT (06/16) 2016-21937 (Exp. 06/18) If you have a rep or agency disclosure, please add it to this slide. The Guardian Life Insurance Company of America New York, NY 10004