Why DI? Why your clients need it Why you should sell it Why your clients need it Why you should sell it Leading Edge Disability Center (888)

Of all the risks you take, if you could only protect yourself against one, would it be: Of all the risks you take, if you could only protect yourself against one, would it be:  the one most likely to occur? or  the one that if it were to occur, could produce the greatest financial loss? Of all the risks you take, if you could only protect yourself against one, would it be: Of all the risks you take, if you could only protect yourself against one, would it be:  the one most likely to occur? or  the one that if it were to occur, could produce the greatest financial loss? Leading Edge Disability Center (888) Leading Edge Disability Center (888)

1 in 1,300 1 in 70 1 in 1,300 1 in 70 1 in in 8 1 in in 8 1 in 1,300 1 in 70 1 in 1,300 1 in 70 1 in in 8 1 in in 8 Comparative Insurance Usages In A Given Year Life DI Sources: Transactions. Society of Actuaries Commissioners Disability Table Death – National Center for Health Statistics Fire & Motor Vehicle – Accident Facts. National Safety Council Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Protect Your Most Valuable Asset Current Age $25,000 $35,000 $35,000$50,000$60,000$100,000$125,000$150, ,0001,225,0001,750,0002,100,0003,500,0004,375,0005,250, ,0001,050,0001,500,0001,800,0003,000,0003,750,0004,500, , , ,0001,250,0001,500,0002,500,0003,125,0003,750, , , ,0001,000,0001,200,0002,000,0002,500,0003,000, , , , , , , ,0001,500,0001,875,0002,250, , , , , , , ,0001,000,0001,250,0001,500, , , , , , , , , , , , , ,000 Average Income to Age 65 Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Why Don’t People Buy DI?  No one ever thinks they are going to become “disabled,” which in their minds means: Why Don’t People Buy DI?  No one ever thinks they are going to become “disabled,” which in their minds means: Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Don’t Use “Disability”  Propose a new phrase – “Too sick or hurt to work” – “Too sick or hurt to work”  Propose a new phrase – “Too sick or hurt to work” – “Too sick or hurt to work” Leading Edge Disability Center (888) Leading Edge Disability Center (888)

UCL Major Causes of Disabilities Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Types of Disabilities  Total  then partial  then recovered (i.e. heart attack)  Partial  then total  then death (i.e. cancer)  Partial  stay partial (i.e. bad back)  Total  stay total (i.e. auto accident causing permanent paralysis)  Total  then partial  then recovered (i.e. heart attack)  Partial  then total  then death (i.e. cancer)  Partial  stay partial (i.e. bad back)  Total  stay total (i.e. auto accident causing permanent paralysis) Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Types of Disabilities DeadProceed with caution Proceed as normal Leading Edge Disability Center (888) Leading Edge Disability Center (888)

The Good News and Bad News Good News People are living longer. Bad News Diseases that used to cause death are now leaving people disabled. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Disability On the Rise 70% 44% 36% 55% -73% -29% -48% -27% -32% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Death Disability Hypertension Cerebrovascular Diabetes All Four Heart Diseases Source: National Center for Health Statistics Disability Death Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Everything Rests on Income Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Who Buys DI?  Doctors  Lawyers  Business Owners  Executives  Doctors  Lawyers  Business Owners  Executives Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Percentage of Penetration Market Potential Source: Provident; Bear, Steams & Co. Inc. Report, 1998 Estimated Individual DI market size and penetration 78 Marketing Opportunity Millions of People Penetration (Left scale) Market Size (Right scale) Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Marketing Opportunity Individual Disability Market Penetration by Profession Source: UnumProvident; The Guide of Understanding the Life Insurance Industry Banc of America Securities Inc Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Marketing Opportunity Every 1.3 seconds someone becomes a hospital patient. Every 3.3 seconds someone is disabled for a day or longer. Every 7.5 seconds someone is disabled in the home. Every 15.6 seconds someone is disabled at work Likelihood of becoming disabled Source: Jim McCarty CLU, RHU, LUTCF, Above the Line: Scorching Strategies for Sizzlin’ Sales Success, Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Number of Employees % of Companies ProvidingEmployee Disability Coverage Marketing Opportunity Source: Response Analysis Corporation,1994 Leading Edge Disability Center (888) Leading Edge Disability Center (888)

 DI is discussed in only 36% of all insurance discussions.  Just ASK!  DI is discussed in only 36% of all insurance discussions.  Just ASK! Source: 2000 LIMRA International, Inc. Marketing Opportunity Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Top 10 Companies Selling Noncancellable DI 1. Unum/Provident 6. IDS Life 1. Unum/Provident 6. IDS Life 2. Guardian Life 7. Principal 2. Guardian Life 7. Principal 3. Mass Mutual Life 8. Union Central 3. Mass Mutual Life 8. Union Central 4. Northwestern Mutual Life 9. Combined of America 4. Northwestern Mutual Life 9. Combined of America 5. Met/NEF10. Standard of Oregon 5. Met/NEF10. Standard of Oregon 1. Unum/Provident 6. IDS Life 1. Unum/Provident 6. IDS Life 2. Guardian Life 7. Principal 2. Guardian Life 7. Principal 3. Mass Mutual Life 8. Union Central 3. Mass Mutual Life 8. Union Central 4. Northwestern Mutual Life 9. Combined of America 4. Northwestern Mutual Life 9. Combined of America 5. Met/NEF10. Standard of Oregon 5. Met/NEF10. Standard of Oregon Source: 2002 LIMRA International, Inc., First quarter year-to-date. (Based on 18 participating companies.) Leading Edge Disability Center (888) Leading Edge Disability Center (888)

DedicationDedication  Union Central is dedicated to selling DI. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

PersistencyPersistency  Due to the level premium structure of noncancellable DI, once a policy has been in force for several years, it is less likely to be replaced. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

 Current rates at a given age for $1000 of basic coverage Age Annual Premium Age Annual Premium 25$ $ $ $ $ $ $ $  Current rates at a given age for $1000 of basic coverage Age Annual Premium Age Annual Premium 25$ $ $ $ $ $ $ $ PersistencyPersistency Leading Edge Disability Center (888) Leading Edge Disability Center (888)

CompensationCompensation  Disability insurance has a strong FYC as well as an impressive renewal and bonus program.  Over time, selling DI is very profitable.  Disability insurance has a strong FYC as well as an impressive renewal and bonus program.  Over time, selling DI is very profitable. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Year DI Renewal (10%) + Bonus (5%) Life Renewal (2%) 1$0$0 2$3,075$600 3$6,150$1,200 4$9,225$1,800 5$12,300$2,400 6$15,375$3,000 7$18,450$3,600 8$21,525$4,200 9$24,600$4,800 10$27,675$5,400 Total$138,375$27,000 CompensationCompensation Assumes $30,000 premium/year; 100% persistency Note: DI and Life FYC over this time period = $150,000 each Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Repeat Business  As a person’s income increases, the need to add more DI increases as well.  Guaranteed Physical Insurance Rider (GPIR) allows your client to purchase those increases.  As a person’s income increases, the need to add more DI increases as well.  Guaranteed Physical Insurance Rider (GPIR) allows your client to purchase those increases. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

“While most individuals will protect themselves from the loss of personal property, few consider the consequences of losing the ability to earn a living.” “While most individuals will protect themselves from the loss of personal property, few consider the consequences of losing the ability to earn a living.” — Associated Press Online 2/99 — Associated Press Online 2/99 Experts recommend buying DI Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Experts recommend buying DI “Before worrying about savings, one had better protect their income.” — U.S.A. Today 7/86 “Before worrying about savings, one had better protect their income.” — U.S.A. Today 7/86 Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Experts recommend buying DI “Disability insurance may be a family’s only protection against financial ruin.” “Disability insurance may be a family’s only protection against financial ruin.” — Wall Street Journal 12/85 Leading Edge Disability Center (888) Leading Edge Disability Center (888)

Professional Liability  Agents who present themselves as “financial planners” but don’t discuss DI may be held liable for uninsured losses. Leading Edge Disability Center (888) Leading Edge Disability Center (888)

ConclusionsConclusions  There is a need to protect people’s income.  Relatively few companies and agents are offering disability income.  There are great financial rewards for selling disability income.  Union Central has a great product.  All you need to do is – Just Ask!  There is a need to protect people’s income.  Relatively few companies and agents are offering disability income.  There are great financial rewards for selling disability income.  Union Central has a great product.  All you need to do is – Just Ask! Leading Edge Disability Center (888) Leading Edge Disability Center (888)