Why Group Hospital Indemnity? MK-3367 (5-14)

How are employers reacting to rising health care costs? Today’s employer challenges Impact of health care reform Rising health care costs Economic pressures Employer actions: Increased employee contributions1 100 80 60 40 20 57% Raised deductibles2 100 80 60 40 20 33% 40% Offered HDHP3 100 80 60 40 20 43% 1,2 National Business Group on Health, Large Employers’ 2013 Health Plan Design Survey, August 2012. 3 Kaiser Family Foundation, Employer Health Benefits: 2013 Annual Survey (2013), employers with 1,000+ employees.

The average cost of a hospital stay is Many employees have financial exposure and cannot absorb the expense of hospitalization 70% of workers have an out-of-pocket maximum of at least $2,0001 $9,7003 The average cost of a hospital stay is of Americans don’t have at least $2,000 in emergency savings2 44% 1 Kaiser Family Foundation, Employer Health Benefits: 2013 Annual Survey (2013) employers with 1,000+ employees. 2 Purchasing Power, Financial Wellness: Addressing the “9 to 5” Impact of 24/7 Financial Stress (July 2013; accessed Oct. 9, 2013), http://www.purchasingpower.com/sites/all/files/WhitePaper_FinancialWellness.pdf. 3 Costs for Hospital Stays in the United States, 2010.

Unum Group Hospital Indemnity Insurance What is it? Hospital Indemnity Insurance pays benefits to help employees and their families meet the costs of a covered hospital stay. Why do employees need it? No matter what a medical plan covers, hospital stays carry a hefty price tag. For a predictable premium, employees can reduce the financial impact of a hospital stay. How does it work? Pre-defined benefit amounts are paid directly to employees when they have a covered hospital stay, regardless of the actual costs incurred. Unum’s Group Hospital Indemnity includes a range of plan designs and options flexible enough to supplement virtually any medical plan.

Unum group hospital indemnity can help MK-2515 (11-11) Unum group hospital indemnity can help Protection for employees Helps reduce the financial impact of out-of-pocket expenses such as co-insurance, co-pays and deductibles Covers crucial gaps and helps to provide a proper financial protection plan Three plan designs available, including an HSA-compatible plan solution Pays a lump-sum benefit when an employee is hospitalized and may also pay for surgery or diagnostic testing based on the plan design The optional Enhanced Admission Payout provision increases the hospital admission benefit amount once coverage has been inforce for a certain number of years Unum’s group hospital indemnity insurance can pay a lump sum benefit that help pay for the costs associated with a hospital stay. It can also provide funds for the out-of-pocket expenses not covered by an employees medical plan. Employees can use the money any way they see fit. *Offerings and plan options vary by plan design. J. Wenn - VB Market Facing Deck

Unum Group Hospital Indemnity Insurance – plan designs MK-2515 (11-11) Unum Group Hospital Indemnity Insurance – plan designs Employer-elected plan options Additional benefit options* Base plan features Plan 1 Plan 2 Plan 3 Hospital Admission X Diagnostic Procedure Outpatient Surgical Procedure Inpatient Surgical Transportation Benefit Lodging Benefit Employer-elected optional benefits Plan 1 Plan 2 Plan 3 Daily Hospital Confinement X Intensive Care Benefit Wellness Emergency Room Visit Accident Only Portability Rehabilitation Unit Benefit Unum’s group hospital indemnity insurance can pay a lump sum benefit that helps pay for the costs associated with a hospital stay. It can also provide funds for the out-of-pocket expenses not covered by an employees medical plan. Employees can use the money any way they see fit. *More additional benefit options are available J. Wenn - VB Market Facing Deck

Unum Group Hospital Indemnity Insurance – wellness benefit MK-2515 (11-11) Unum Group Hospital Indemnity Insurance – wellness benefit Each individual covered under the optional wellness benefit will receive $50, $75 or $100 per calendar if a covered health screening test is performed. Employees complete simple claims process to receive this benefit. Wellness benefits paid on average within 24 hours. Covered screenings* Colonoscopy Mammography Pap smear Skin cancer biopsy PSA (blood test for prostate cancer) Chest X-ray Stress test on a bicycle or treadmill The wellness benefit reimburses each covered person for receiving an annual health screening – up to $100 a year for group hospital indemnity coverage. Some of the tests include: [go over list] *Additional covered screenings may apply. See benefits schedule for completed details. J. Wenn - VB Market Facing Deck

Group Hospital Indemnity benefit example* MK-2515 (11-11) Group Hospital Indemnity benefit example* Group Hospital Indemnity policy from Unum Lump-sum benefit to help cover costs associated with a hospital stay, as well as unexpected out-of-pocket expenses Benefits paid: $150 emergency room visit $1,500 hospital admission benefit $1,000 diagnostic procedure benefit $500 daily hospital confinement benefit ($100 x 5 days) Total benefit paid = $3,150 The Unum solution 40-year old man Heart attack with complications resulting in a 5-day hospital stay Out-of-pocket expenses: $100 emergency room co-pay $500 deductible $1,000 co-insurance for surgery ($5,000 x 20%) $2,000 co-insurance for 5-day hospital stay ($10,000 x 20%) Total out-of-pocket = $3,600 The situation *For illustrative purposes only. Assumes out-of-pocket maximum under the medical plan is in excess of expenses. Costs of treatment, benefits covered and benefit amounts may vary, depending on the plan design . J. Wenn - VB Market Facing Deck

J. Wenn - VB Market Facing Deck MK-2515 (11-11) THIS IS A LIMITED POLICY This coverage is a supplement to health insurance. It is not a substitute for comprehensive health insurance and does not qualify as minimum essential health coverage. CA, MA and ME — Employees must have comprehensive medical coverage before purchasing hospital indemnity insurance. Underwritten by Unum Life Insurance Company of America, Portland, Maine 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. unum.com © 2014 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. MK-3367 (5-14) FOR BROKERS AND EMPLOYERS Thank you for your time. Are there any questions? [Always use this slide]. J. Wenn - VB Market Facing Deck