TMK Med Supp Compensation for Independent Contractor Agents and Unit Managers TMK Agent Training Only

TMK Liberty National markets Medicare Supplements A, B, F, HDF, and N. This presentation details one of many compensation opportunities. TMK

Any policy sold should be suitable to the needs of the applicant based on their health status and financial situation. TMK

Our expectation is that new Agents will be able to sell 5 HDF policies each week – when appropriate for the customer – and, additionally, sell Liberty Whole Life products on 3 of those sales, when appropriate. TMK

I.Agent HDF Commission II.Agent Life Commissions III.Agent Life Advances IV.Agent Production Bonus V.Agent Renewals VI.Unit Manager HDF Commission VII.Unit Manager Life Commissions VIII.Unit Manager Life Advances IX.Unit Manager Bonus X.Unit Manager Renewals TMK

I. Agent HDF Advanced Commission Loans TMK

Agent Advanced Commission Loans HDF Sales $54 monthly premium per HDF sale 300% 1 st month’s premium= $ % months $65 420% Total first-year commission from one HDF sale $227 Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.

TMK Agent Advance Commissions Loans HDF Sales 420%Total first-year commission from one HDF sale = $227 Sales per weekx 5 Total first-year commission per week$1,134 Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.

TMK Agent Advance Commissions Loans HDF Sales Total first-year commission per week = $1,134 Weeks per yearx 52 Total first-year commissions$58,968 Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.

TMK II. Agent Life Commissions TMK

Even after the HDF premium is paid and the minimum deposit of $50 made to the Reserve Fund Annuity, money remains. Agent Commission: 3 LNL Life Sales per Week

TMK $38monthly premiums $5k WLN policy ÷.09 modal factor $422annual premium at 65% commission = $274 Agent Commission: 3 Life Sales per Week What can they do with it? Buy additional coverage!

TMK $274Life commission per sale x 3Sales per week $822Life commission per week Agent Commission: 3 Life Sales per Week

TMK III. Agent Life Advances TMK

70% of commission is Direct Pay on submission 30% deposited into commission account TMK Agent LNL Life Advance Commissions

TMK $274Life commission per sale x 70%Advance following week $191Advance commission per sale Agent Commission: 3 LNL Life Sales per Week

TMK $191Advance commission per sale x 3Sales per week $573Advance commission per week Agent Commission: 3 LNL Life Sales per Week

TMK $573Advance commission per week x 52Weeks per year $29,796Advance commission per year Agent Commission: 3 Life Sales per Week

TMK IV. Agent Production Bonus TMK

But don’t forget about the bonus… $422 AP per Life Sale x 3Policies per week x 40% Bonus level * $506Bonus per week Agent Bonus: 3 Life Sales per Week* *Assumes Agent reaches 40% bonus level on 4 th consecutive week of $1,000 or more: 1 st wk = 10%, 2 nd wk = 20%, 3 rd wk = 30%, 4 th wk = 40%

TMK So let’s add it all up TMK

$58,760 HDF commission + $29,796Life advance commission + $26,312Bonus $114,868Total commission & bonus Agent Annual Commissions HDF + Life + Bonus

TMK $115,076 Total commission & bonus + $12,948From Commission Account $128,024Total commission & bonus* Agent Total Commissions HDF + Life + Bonus *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Total Agent Compensation* $127,816 TMK *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK V. Agent Renewals TMK

HDF: Renewals* TMK *According to contract provisions MonthsPercentage % % % % %

TMK Whole Life $50,000 or Less: Renewals* TMK * According to contract provisions MonthsPercentage % % % % 120+9%

TMK VI. Unit Manager HDF Commission Advance Loans TMK

UM Advance Commission Loans HDF Sales $56 first-year premium per HDF sale 70% 1 st month’s premium= $39 50% months $28 120% Total first-year commission from one HDF sale by one Agent $67 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.

TMK UM Advance Commission Loans HDF Sales Total first-year commission from one HDF sale by one Agent = $67 Sales per Agent per weekx 5 Commission per Agent per week$335 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode.

TMK UM Advance Commission Loans HDF Sales $56 first-year premium per HDF sale Commission per Agent per week= $335 Weeks per year x 52 HDF commission per Agent per year*$17,420 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode. *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Advance Commission Loans HDF Sales on 3 Agents Commission per Agent per year=$17,420 Agents in Unitx 3 Commission per year with 3 Agents in Unit* $52,260 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode. *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Advance Commission Loans HDF Sales on 5 Agents Commission per Agent per year=$17,420 Agents in Unitx 5 Commission per year with 5 Agents in Unit* $87,100 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode. *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Advance Commission Loans HDF Sales on 7 Agents Commission per Agent per year=$17,420 Agents in Unitx 7 Commission per year with 7 Agents in Unit* $121,940 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode. *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Advance Commission Loans HDF Sales on 10 Agents Commission per Agent per year$17,420 Agents in Unitx 10 Commission per year with 10 Agents in Unit* $174,200 Writing Agent appointed 0-6 months. Rates: Female turning 65 (TX rates, area 3, non-smoker). Monthly bank draft payment mode. *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK XII. Unit Manager Life Commissions TMK

$38monthly premiums $5k WLN policy ÷.09 modal factor $422annual premium at 40% commission = $168 UM Commission: 3 Life Sales per Week

TMK $168Life commission per sale x 3Sales per week $504Life commission per week* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK XIII. Unit Manager Life Advances TMK

70% of commission is Direct Pay 30% deposited into commission account TMK

$168Life commission per sale x 70%Advance following week $117Advance commission per sale UM Commission: 3 Life Sales per Week

TMK $117Advance commission per sale x 3Sales per week $351 Advance commission per week* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK $351Advance commission per week x 52Weeks per year $18,252Advance commission per year* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK $18,252Advance commission per year x 3Agents in Unit $54,756Advance commission per year* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK $18,252Advance commission per year x 5Agents in Unit $91,260Advance commission per year* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK $18,252Advance commission per year x 7Agents in Unit $127,764 Advance commission per year* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK $18,252Advance commission per year x 10Agents in Unit $182,520 Advance commission per year* UM Commission: 3 Life Sales per Week *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK IV. Unit Manager Production Bonus TMK

UM: Bonus The Unit Manager is eligible for a weekly production bonus that is a percentage of any weekly production bonus received by an Agent on the Unit Manager’s group. The percentage will depend on the number of 1st time 40% bonus earners during the previous 8 weeks and the Agent’s length of service

TMK UM: Bonus Bonus Override % of Agent’s Bonus # NEW* 1st Time 40%Agent’s Weeks of Service Bonus earners: % 15% 10% 1 60% 15% 10% 2+ 80% 15% 10% *occurring in the previous 8 week period, adjusted monthly

TMK UM: Bonus In the Agent example, the Agent’s bonus was $506. Assuming the Unit Manager is at the 80% level, the Unit Manager would receive $404 in bonus. Assuming DCN multiplier of 1.

TMK Commission per week$320 Bonus per week$404 Compensation per week from 1 Agent* $724 UM: Weekly Compensation from 1 Agent *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Income per week per Agent$724 Agents on Unitx 3 Total Weekly Compensation*$2,172 UM: Weekly Compensation from 3 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Income per week$2,172 Weeks per yearx 52 Total Annual Compensation*$112,944 UM: Annual Compensation from 3 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Income per week per Agent$724 Agents on Unitx 5 Total Weekly Compensation*$3,620 UM: Weekly Compensation from 5 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Income per week$3,620 Weeks per yearx 52 Total Annual Income*$188,240 UM: Annual Income from 5 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Income per week per Agent$724 Agents on Unitx 7 Total Weekly Compensation*$5,068 UM: Weekly Compensation from 7 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Income per week$5,068 Weeks per yearx 52 Total Annual Compensation*$263,536 UM: Annual Compensation from 7 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK UM Income per week per Agent$724 Agents on Unitx 10 Total Weekly Compensation*$7,240 UM: Weekly Compensation from 10 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Income per week$7,240 Weeks per yearx 52 Total Annual Compensation*$376,480 UM: Annual Compensation from 10 Agents *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK So let’s add it all up TMK

Unit Manager Compensation Potential Comm AgentsHDFLifeProduction+ Bonus Per UnitComm AdvancesBonusTotal* 3$52,260 +$54,756 +$112,944 = $219,960 5$87,100 +$91,260 +$188,240 = $366,600 7$121,940 +$127,764 +$263,536 = $513,240 10$174,200 +$182,520 +$376,480 = $733,200 TMK *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK Unit Manager Compensation Potential Agents AnnualCommissionTotal Annual Per UnitTotalAccountEarnings* 3$219,960 +$23,400=$243,360 5$366,600 +$39,000=$405,600 7$513,240 +$54,600=$567,840 10$733,200 +$78,000=$811,200 TMK *Less any shrinkage from Cancellations, Not-Takens and/or Lapses

TMK X. Unit Manager Renewals TMK

Whole Life $50,000 or Less Renewals* TMK *According to contract provisions MonthsPercentage % % % % 120+4%

TMK The End TMK