Assurant Supplemental Coverage Matt Krueger

2 Assurant Supplemental Coverage 2 Supplemental individual plans Generally not subject to health care reform Fits well with major medical high deductible plans, Assurant Health Access SM or Short Term Medical plans May also be sold as standalone Great paired with group medical Option for those who cant afford major medical Every customer is a potential supplemental customer!

3 Assurant Supplemental Coverage 3 Market Opportunity More than 49.9 million uninsured (Source: U.S. Census, Sept. 2011) – Segment of this group has resources and desire to purchase supplemental products Paradigm shift in benefits – More high deductible plans with the opportunity to help cover gaps and out-of-pocket expenses – Fewer employer-sponsored benefits – Consumer has more control over spending health dollars and wants the most value per dollar

4 Consumer Insights Direct questioning was utilized to determine the likelihood to purchase supplemental products (% of 6 and 7 scores on a 1-7 scale).

5 Q4.Thinking about the insurance plans you have evaluated in this survey, how likely would you be to purchase supplemental insurance in order to provide additional coverage for the following? Consumer Insights Focus Group results – Consumers dont really understand this space – Agents really help in explaining solutions Marketing – Successful test utilizing dental – Halo effect

6 One simple application!

Assurant Supplemental Coverage Dental

8 Assurant Supplemental Coverage 8 Dental Insurance Scheduled indemnity plan which pays a set amount, up to the policy max, per procedure Customers can choose their own dentist no network restrictions! Simplified rates - no ZIP code or industry based rates Benefits available the next day for cleanings Coverage is portable Great breadth of ages No underwriting, only dental professionals are prohibited 40% discount when sold with IM or Health Access!

9 Assurant Supplemental Coverage 9 Dental Insurance 3 affordable options to fit every customers budget Preventive does not count toward calendar year max Basic Plan (Level I) Intermediate Plan (Level II) Plus Plan (Level III) Preventive Separated by 150 days $75 per visit$100 per visit Basic services $25 - $200 based on procedure $50 - $400 based on procedure $50 - $400 based on procedure Major services None $20 - $1,000 based on procedure Calendar year max $500$1,000$1,500 Standalone Premium $15.50$26.50$35 - $75

10 Assurant Supplemental Coverage - Dental May 2012 Product Availability Issue Ages 0-64 Issue Ages 0-70 No Dental Available

Assurant Supplemental Coverage Critical Illness Term-life CI and Cancer & Heart/Stroke

12 Assurant Supplemental Coverage 12 Setting the Stage Critical Illness plans are for customers worried about not having enough money to pay for a life-threatening disease Will he or she have the money to cover medical and non-medical costs? Everyday costs Mortgage/rent Car payments Utilities Food Medical costs Deductibles and coinsurance Out-of-network costs Experimental treatments Unforeseen costs Lost income Travel to hospitals Home adaptations Home health care Critical Illness benefits can help cover:

13 Cancer and Heart/Stroke Overview Why Cancer & Heart/Stroke? – More than 1.6 million U.S. residents will be diagnosed with cancer this year (American Cancer Society, Facts and Figures 2012) – Somebody in the U.S. has a heart attack every 34 seconds (Centers for Disease Control and Prevention, Heart Disease Fact Sheet, 2010) 3 Pillars of the Product – Simple Easy to understand plan design and underwriting process Save time and integrate plans with just one click only from Assurant! – Flexible Clients choose coverage for cancer only, heart/stroke only, or both Available age 18 – 64 and greater face amounts for bundling with IM or AHA – Affordable Clients pay for only the conditions they worry about most Clients choose a benefit level ($10k to $75k) to suit their needs and budget

14 Assurant Supplemental Coverage 14 Term Life - Critical Illness Overview Life policy with Critical Illness benefits Provides a one-time lump sum payment of up to $100,000 upon diagnosis of any of 15 life threatening conditions Policy term: 10 or 20 years Apply ages Features: – Waiver of premium option – Accidental Death Benefit option (not available in OH)

15 Assurant Supplemental Coverage 15 Term Life - Critical Illness Plan Summary Rates – Issue age (not attained) based, 18 through 59 – Preferred/standard based on tobacco use Waiting periods (vary by state) – 90 days for cancer – 30 days for all other sickness-related conditions Underwriting – Critical Illness has its own self-standing application – Each applicant will undergo an MIB and Rx check – There are ineligible occupations and ineligible vocations which will appear in the quoting tool – Height/weight chart matches individual medical for ineligibles Please read the coverage documents carefully for a complete listing of benefits, limitations and exclusions. Benefits vary by state.

16 Assurant Supplemental Coverage 16 The Good News The good news is that people are living longer and more successfully combating critical illnesses – The challenge is that the costs of fighting these diseases can be costly 60% of costs for fighting cancer may be non-medical* – 33% of families deplete all or most of their savings in the event of a critical illness** A lump sum payment helps cover the costs of treatment because: – The payment is made directly to the insured, who can spend the money at his or her discretion – Benefit is paid upon first diagnosis of condition Source: * American Cancer Society, Statistics do not imply endorsement. ** Market Facts, LIMRA, 2002.

17 Assurant Supplemental Coverage – Critical Illness May 2012 Product Availability Term Life – CI and Cancer Heart Stroke Term Life CI No CI or Life Product Available

Assurant Supplemental Coverage Accident Accident Fixed Benefit & Accident Medical Expense

19 Assurant Supplemental Coverage 19 The Need for Accident Insurance In 2007, 62 percent of bankruptcies were caused by medical debt. The American Journal of Medicine In 2008, there were 42.4 million injury-related emergency room visits in the U.S. U.S. Department of Health and Human Services, February 2011 In 2009, 21.4% of adults in the U.S. had an emergency room visit. U.S. Department of Health and Human Services, February 2011

20 Assurant Supplemental Coverage 20 Accident Medical Expense Reimburses up to the chosen benefit level ($2,500, $5,000, $7,500, $10,000) for out-of-pocket medical expenses Low $250 deductible per accident Individual or family coverage rates 24-hour coverage included Guaranteed issue – no medical underwriting Available Great fit with Individual Medical! Accident Fixed Benefit Pays a set cash benefit for each covered injury service that can be used for any expenses No deductible Rates vary based on occupation customer chooses 24 hour coverage or off-the-job coverage Simplified underwriting process Available Great fit with Health Access! Both accident plans also have these great features: No waiting period Use the accident benefits over and over without an annual maximum Rates will not be raised for using the plan multiple times Visit any doctor or hospital Accident Coverage Options in Summary

21 Assurant Supplemental Coverage 21 Accident Fixed Benefit – Key Benefits Benefit SummaryLevel 1Level 2 Accident Emergency Treatment (ER or doctors office) $100 Adult/$50 Child Initial Accident Hospitalization$1,000 ICU Confinement$500/day Accident Hospital Confinement$250/day$300/day Accident Specific–Sum Injury - Burns Up to $2000 (2 nd degree)/ $20,000 (3 rd degree) Up to $2500 (2 nd degree)/ $25,000 (3 rd degree) - Coma$15,000$20,000 - DislocationUp to $1000/$4000Up to $1250/$ FracturesUp to $3000/$4000Up to $3750/$ Lacerations$50-$800$ Surgical RepairScheduled amounts up to $2000 Scheduled amounts up to $2500 Accidental Death$30,000 Adult/$15,000 Child $50,000 Adult/$20,000 Child Ambulance (ground/air)$150/$1000$200/$1500 Lodging$100/night$125/night Major Diagnostic Exams$200 Rehabilitation Unit$100/day$150/day Accident Follow-up Treatment$25$35 Please read the coverage documents carefully for a complete listing of benefits, limitations and exclusions. Benefits vary by state.

22 Assurant Supplemental Coverage 22 Plan Features & Coverage Details Accident Reimbursement Levels (per person, per accident) $2,500 / $5,000 / $7,500 / $10,000 Deductible $250 per accident/per person Waiting Period None Calendar Year Maximum Nonebenefits paid per accident 24-hour Coverage (on-the-job & off-the-job) Yes Accidental Death & Dismemberment 100% of AME benefit upon death; 25% to 100% of AME benefit for dismemberment (dependent on affected body part) Plan Limitations Ambulance Service Limitation $300 per accident/person Physical Medicine Limitation $25 per visit up to $250 per accident/per person Durable Medical Equipment Limitation $100 per accident/per person Accident Medical Expense at a Glance *Benefits may vary by state, see state specific benefit schedule for details Please read the coverage documents carefully for a complete listing of benefits, limitations and exclusions. Benefits vary by state.

23 Assurant Supplemental Coverage 23 Customer Experience Renewable to age 75 Cannot be canceled based on the number of claims filed Unique customer claims experience on integrated sales – No EOB required (for IM or AHA customers) – One of the few, if not only, companies that can deliver on coordination of many claims

24 Assurant Supplemental Coverage - Accident February 2012 Product Availability Accident Fixed Benefit Only AME & Accident Fixed Benefit No Accident Product Available