For producer use only. Not for use with consumers. This presentation is not for use in California (2/07) Effective Multi-Life Marketing Meeting the Needs of Many, With a Sale to One

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Presentation Overview Page 2 Why is IDI so important? –The need for disability protection –Group LTD limitations How can we improve coverage? –Multi-life plan design –Enrollment procedures Who should I approach? –Centers of influence –Marketing options

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Why IDI? Pg. 3 Two important truths –Disability is possible –Effects of disability can be financially devastating While a valuable benefit, group LTD alone might not meet the needs of the highly compensated employee

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Disability Concerns Pg. 4 Every 30 seconds someone files for bankruptcy in the aftermath of a serious medical problem. -Sick and Broke by Elizabeth Warren, The Washington Post, 9 February % of executives are concerned about losing their income. 40% of executives are concerned about losing their standard of living. 50% of executives do not have a financial advisor. -The Value of Executive Benefits to Corporate Executives, James O. Mitchel, Ph.D., CEBS LIMRA International.

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Duration of Long-Term Disability Pg. 5 *Duration of disability is measured from the start of disability to (at most) age 65.

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. After taxes, a 60% LTD benefit is actually less than 60% of gross earnings. * After-tax benefits assume 25% tax rate. The LTD Gap and The Tax Bite Pg. 6 Just like a regular paycheck, benefits from employer-provided group LTD plans are generally taxable. 100% 60% 40% 20% 0% 80% GrossNet Salary Group LTD Gross vs. Net Income (gross less taxes*)

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Closing the LTD Gap Pg. 7 LTD benefits often have a percentage cap –May limit amount of income replacement for highly compensated employees Definition of disability –Some plans provide limited occupation protection Portability of contract –LTD is lost when employee leaves company LTD benefits are generally taxed as income

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Higher earnings mean less coverage Pg. 8 Assuming a group LTD plan covers only the lesser of $5,000 or 60% of salary*: If executive A receives $200,000 annual salary, only 30% of salary is protected If executive B receives $50,000 base and $100,000 in bonus, only 20% of total compensation is protected *This example assumes a group plan that does not cover bonuses.

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Individual Disability Insurance Solves Problems for Executives Pg. 9 Executive A: $5,000 Group LTD* $8,350 Supplemental IDI $13,350 Total Benefit Represents 80% of Gross Income Executive B: $2,500 Group LTD* $7,500 Supplemental IDI $10,000 Total Benefit Represents 80% of Gross Income *This is a hypothetical example. Actual benefit may vary. Some group LTD plans may include an offset clause, which changes the benefit amounts available.

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. IDI Solves Problems for Corporate Benefit Planners Pg. 10 Addresses income replacement limitations inherent in many group LTD plans Creates plan for stability with regard to premium fluctuations and changes in policy terms Enhances total benefit package for recruitment and retention Can be offered as a mandatory or voluntary benefit plan, with little or no additional administrative burden

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. How is this done? Pg. 11 Guaranteed Standard Issue No medical underwriting and limited financial requirements! Employer paid Mandatory guidelines: lives = $2, lives = $4, lives = $6, lives = $8,000 Employee paid Voluntary guidelines: lives = $1, lives = $2, lives = $5, lives = $7,000 Requires the greater of: 15 lives or 30% participation.

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Sample Case of 43 Executives* Pg. 12 Annual Income Monthly Income Group LTD IDI GSI Benefit Total Benefit Replacement Percentage $308,000$25,667$5,000$6,000$11,00043% $215,132$17,928$5,000$6,000$11,00061% $154,019$12,835$5,000$5,261$10,26180% $137,003$11,417$5,000$4,134$9,13480% $93,068$7,756$4,653$1,151$6,20480% *Example is for illustrative purposes only. (Scenario #1, $84,195)

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Continued… Pg. 13 Annual Income Monthly Income Group LTD IDI GSI Benefit Total Benefit Replacement Percentage $308,000$25,667$10,000$4,000$14,00054% $215,132$17,928$10,000$3,880$13,88077% $154,019$12,835$7,701$2,560$10,26180% $137,003$11,417$6,850$2,283$9,13480% $93,068$7,756$4,653$1,151$6,20480% *Example is for illustrative purposes only. (Scenario #2, $ 56,595)

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. GSI Process Pg. 14 Send group LTD plan info, current census and other pertinent info to your local Plus Group office They will work with the underwriters in The Standards home office to develop a GSI offer letter and illustration After client company representative signs the offer letter, pre-printed applications and personalized pitch kits will be sent on a CD Presentation and pre-enrollment material is available for voluntary plan enrollment meetings

© StanCorp Financial Group, Inc. For producer training use only. Not for use with consumers. This presentation is not for use in California. Who do I talk to? Pg. 15 Most successful plans start with a center of influence Current client Decision-maker affected by LTD limitations People are motivated by their own situations Correct perceived mistakes Discounted policy for themselves Medical underwriting concessions Kudos for a job well done

For producer use only. Not for use with consumers. This presentation is not for use in California (2/07) Thank you for your participation! Please contact your local Plus Group office for more information. Go to and click on the agency locator map to find an office near you or callwww.plusgroupus.com