AgriBank and First Resource Group presents DI Solutions for America’s Farmers

FCS roots are in Middle America Illinois Mutual’s roots are also in Middle America. Farmers were among our first customers over 95 years ago and continue to remain a strong market for Illinois Mutual. Our strong 95 year history demonstrates our financial strength and stability that farmers can trust and count on.

Founded in 1910 Has sold guaranteed renewable DI since 1955 Holds A- Excellent rating from AM Best We are a leader in the GR and BE Market Reached $1 billion in assets in 2003 Illinois Mutual

Farmers Need Disability Insurance Farmers Harness the power of nature to make things grow. This is a way of life that had long been the dominant occupation of human beings since the dawn of civilization. There are approximately 3.1 million men and women who work on American’s 2.3 million farms and ranches. According to Accident Facts published by the National Safety Council, farm accidents and other work-related health problems cause 120,000 injuries a year. The majority of agricultural work injuries (61%) occurred to the operator of the farm or a farm family member. Door Opening Questions: How long could you make it without a paycheck, milk check or crop check? Do you find it hard to live within your income? How would it be living without that income? You can say, “I don’t need it,” but can you say, “My family won’t need it”? If you save 10% of your income each year, one year of disability could wipe out 10 years of savings. If you become hurt or sick and are unable to work, there are five sources of income for your family: relatives, friends, charity, liquidation of assets and insurance. Which would you prefer?

Foundation to a Financial Plan Auto/Home Life / Health Property Insurance Insurance Insurance Retirement Plans Savings Investments Business Interests Disability Income Insurance Pass on Personal and Bus. Assets

Chances of Disability “Chances of suffering a disability lasting 90 days or longer before age 65.”

FCS LifeExpress Sample Rate-Occupation Table 2 (Farmer) Waiting Monthly Benefit Guaranteed First Day Approximate With Return Period Benefits Period Insurability Accident Premium Of Premium Option Coverage (Per Thousand) Age 25 “Short Term” Disability 30 days $1,000 2 years X X $25 $30 “Long Term” Disability 90 days $1,000 to age 65 X $35 $45 Age 35 “Short Term” Disability 30 days $1,000 2 years X X $30 $43 “Long Term” Disability 90 days $1,000 to age 65 X $42 $65 Age 45 “Short Term” Disability 30 days $1,000 2 years X X $42 $77 “Long Term” Disability 90 days $1,000 to age 65 X $60 $123 Age 55 “Short Term” Disability 30 days $1,000 2 years X X $70 $235 “Long Term” Disability 90 days $1,000 to age 65 X $76 $300 Elimination Period: Waiting period before benefits begin. Benefit Period: The length of time benefits are payable. Guaranteed Insurability Optional Rider: Opportunity to increase disability income coverage every 2 years without evidence of insurability. Retroactive Injury Benefit: If disability is due to an injury and total disability occurs within 30 days of the injury, the rider will pay from the date of the injury. Chances of Disability “Chances of suffering a disability lasting 90 days or longer before age 65.”

What Classes are Sold Most Office workers CPA Computer Analysts Office Managers And more Farmers, Electricians, Carpenters, and more

Job A or Job B? Which job would you prefer? $2,000$0If Disabled $2,950$3,000While Working Job Offer BJob Offer AMonthly Income

Occupation Classifications Class 5: Service, Administrative, Managerial 5 year own occupation definition Class 4: Specialized Medical/Technical 2 year own occupation definition Class 3: Supervisory, Moderate Physical 2 year own occupation definition Class 2: Farmers / Skilled Trade 2 year own occupation definition Class 1: Heavy Labor, Hazardous Environment 2 year own occupation definition

Comparison of Disability Plans MN LifeOld MutualIllinois Mutual Eligible Age to collect benefitsIf disabled, under age 60 Partial disability benefits?No Yes Waiting Periods?90 days 30, 60, 90, 180 days Maximum amount of Benefits?$833/month$3000/month$8000/mo. Length to collect benefits? Up to 3 years, if under age 51 Up to 2 years, at ages Up to 1 year, at age years 6 months, 1,2, 5, 10 years, to age 65 Waiver of Premium?Yes Special Risk Coverage?No Yes Business Expense Coverage?No Yes Benefits based on Herd Size?No Yes Benefits based on Acres of Land?No Yes Coverage for spouse?No Yes Coverage for employees?No Yes Return of Premium?NoYes 1st day accident coverage?No Yes

Farmers’ Disability Income Solutions Illinois Mutual has offered progressive DI solutions to farmers for many years. Many farmers capitalize on farm depreciation and expenses so little or no reportable income is shown for federal income tax purposes. Illinois Mutual will consider coverage without financial documentation by using herd or acreage size to determine the monthly benefit amount that can be offered. Farmers are occupation class 2. Farmers are eligible for ALL elimination periods and benefit periods. This chart can be found on page 70 of the DI Guide Book. Farm Size (acres) Herd Size (head) Monthly Benefit Amount Up to $1, Up to $1, Up to $2,000

Farm Spouse Disability Income Solutions Illinois Mutual also offers coverage available to farm spouses actively working and participating in the farm operation a minimum 30 hours per week. Illinois Mutual will consider coverage without financial documentation by using herd or acreage size to determine the monthly benefit amount that can be offered. Farm spouses are occupation class 2. Farm spouses are eligible for all elimination periods and 6 month, 1 or 2 year benefit periods. This chart can be found on page 70 of the DI Guide Book. Farm Size (acres) Herd Size (head) Monthly Benefit Amount Up to $ Up to $ Up to $800

Individual Income Protection GR21 Maximum Issue: $8,000/month all occupations Elimination Periods: 30, 60, 90 and 180 days Benefit Periods: 6 months, 1, 2, 5 & 10 years, To age 65 Most commonly sold product

GR21 Optional Benefits and Riders Retroactive Injury Benefit Activities of Daily Living Rider Guaranteed Insurability Option Rider Surrender Value Rider--#1 Seller! Residual Disability Rider First Year Monthly Benefit Cost of Living Adjustment Rider Integrated Monthly Benefit Rider

Farmers & Business Expense Protection BE21 Business Expense DI is designed to reimburse usual and on-going monthly business expenses during a disability. Some of the common expenses that may be covered under the plan for farmers include: Utilities—for the barn and shop Depreciation Rent/lease payment for acreage farmed- interest but not principal Property and payroll taxes Irrigation/water systems expenses Veterinarian bills

Business Expense Protection BE21 Guaranteed Renewable to Age 65 Maximum Issue: 100% of Actual Business Expenses –Based on percentage of ownership –Up to $10,000/Month –Farmers not providing documentation- up to $2,000/month Elimination Periods: 30, 60 & 90 days Benefit Periods: 12, 18 & 24 months Optional Benefits & Riders –Retroactive Injury Benefit –Surrender Value Rider –Guaranteed Insurability Option

5 Reasons to Purchase Business Expense Protection BE21 The premium is tax deductible as a business expense. Not to mention it’s affordable! The benefits received under the plan are taxable. However, they are used to pay tax deductible business expenses creating a wash. By continuing to pay the ongoing monthly expenses, the business remains intact and viable until the owner returns to work or sells the business. Benefits are paid as a reimbursement for business expenses each month. If the client does not receive the full benefit in a month, the remaining benefit amount may carryover and extend the benefit period, if the client remains disabled. Your client is eligible to receive a 5% discount on an Illinois Mutual individual DI policy (Guaranteed Renewable GR21), and the BE21 when both policies are submitted at the same time and issued. The 5% discount applies to both policies. Together they cover the client’s net income and business expenses.

Special Risk Income Protection SR21 Designed for those with certain medical conditions. Guaranteed Renewable to age 65 Maximum issue: $8,000/month – Recently Increased! Elimination Periods: 30, 60, 90, 180 Benefit Periods: 2 or 5 years –Graded Benefits for First 2 Policy Years Optional Benefits and Riders –Partial Disability Benefit –Surrender Value Rider –Integrated Rider - Now Available on a five year plan! See DI Guide page 33 for acceptable medical conditions.

Special Risk Business Expense Protection SRBE21 Designed for business owners with certain medical conditions. Guaranteed Renewable to age 65 Maximum issue: $8,000/month—recently increased! Elimination Periods: 30, 60, 90 Benefit Periods: 12, 18 or 24 months –Graded Benefits for First 2 Policy Years Optional Benefits and Riders –Partial Disability Benefit –Surrender Value Rider

Most Sold Optional Benefits & Riders Surrender Value Rider Guaranteed Insurability Option Retroactive Injury Benefit Activities of Daily Living Rider

Return of Premium DI It’s a Winning Solution Illinois Mutual offers Return of Premium DI! With the Surrender Value Rider (SVR) on the DI policy you can “mistake proof” the DI sale and make it return of premium DI. With the SVR, we return 100% of the premiums paid into the policy, less any benefits paid out, at age 65. For example, Age 25 Without Return of Premium Term With Return of Premium Total Annual Premium$708.60$ Total Premium Paid to Age 65$28,344$35,328 If No Claims, Return of Premium at Age 65 $0$35,328 Age 55 Without Return of Premium Term With Return of Premium Total Annual Premium$1,745.40$5, Total Premium Paid to Age 65$17,454$58,188 If No Claims, Return of Premium at Age 65 $0$58,188 GR21, IL Rates, Class 2, NT, 60 day, Age 65 BP, $1,500 Monthly Benefit, “With Return of Premium” includes the Surrender Value Rider

DI Underwriting Personal History Interviews (PHI) $1,000+ benefits Assist in verifying information Financial Documentation W2 employees required on $4,000+ benefits 2 years tax returns, all schedules for self-employed Medical Requirements

FCS LifeExpress Flow Chart FCS Staff Completes Insurance Request Form Sends copy to Point Person Transmits to FRG VIA FAX to or via to FRG Manages: Premium Collection Commissions Data Service Issues FCS LifeExpress Case Manager Completes application Orders underwriting requirements Sends FCS LifeExpress kit to applicant for signature Manages case to issue Case Manager s Point Person when policy is issued to share delivery method and obtain booking date, CIF, Loan #, Loan Officer Code, Office Code, and Loan Amount FCS LifeExpress Case Manager: Interviews customer Discovers goals Reviews health status Creates customer spreadsheet Reviews results with customer Mails or s informational pack to customer for review and consideration Give customers FCS LifeExpress Brochure

Farm Credit Services Member Discount AgriBank has negotiated for Farm Credit Services a Association discount a 5% for it’s members and employees. This allows Associations to deliver products and services that exceed alternatives in the marketplace.

Door Opening Questions What would you consider your most valuable asset? This is a thought provoking question. To help your client to visually prioritize, take them through the “Your Priorities” sales concept. Another way to identify this is to multiply their current earnings by the number of years until retirement.

Door Opening Questions What would you consider your most valuable asset? This is a thought provoking question. To help your client to visually prioritize, take them through the “Your Priorities” sales concept. Another way to identify this is to multiply their current earnings by the number of years until retirement.

Door Opening Questions If you were to retire today, how long would your retirement last? Disability insurance is not retirement but in either case you stop working. With a disability this happens by chance not by choice. If your client could retire today they probably would. But what if they were forced to stop working? How would they be able to fund this “forced retirement?”

Door Opening Questions If you were sick or hurt and unable to work, how would you get paid? Use the terms “sick or hurt”. These terms are more relatable and you’ll find people will respond more favorably.

Farmers are the All-American workers. Without Farmers, America wouldn’t be what it is today. Your farm clients can find progressive disability income solutions with First Resource Group delivered through FCS LifeExpress. We understand the way they work. Contact FCS LifeExpress for all your farm clients!