GSI and group LTD How to Leverage the LTD for GSI Success For Producer use only. Not for use with clients. DI

disclosures In approved states, Disability Income insurance (forms 4501NC, 4501NC CA, 4502GR, 4502GR CA, 4502GR RES CA, 4503BOE and 4503BOE CA) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE In New York, Disability Income insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY Policy and riders may vary and may not be available in all states. This information is provided by Ameritas ®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas ®, visit ameritas.com. When implementing a GSI program, you should always advise your clients to speak with an attorney to determine if there are ERISA issues. Ameritas ® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life ® is a registered service mark of affiliate Ameritas Holding Company. © 2013 Ameritas Mutual Holding Company For Producer use only. Not for use with clients.DI

For Producer use only. Not for use with clients. topics Differences between individual DI insurance and group LTD Opening doors – how to identify them! Closing remarks DI

For Producer use only. Not for use with clients. differences Ownership: Individual DI insurance is typically owned by the insured Group LTD is owned by the employer DI

For Producer use only. Not for use with clients. differences Portability vs. Conversion Portability = you can take an individual DI insurance with you. Same policy form, same price, no new application required. Conversion = you would need to apply for something new. Group LTD would need to be converted to individual DI insurance. The policy changes and the price changes. DI

For Producer use only. Not for use with clients. differences Policy form (options): Three types of disability insurance Conditionally Renewable – Group LTD (long term disability) Guaranteed Renewable – individual DI insurance Noncancelable and Guaranteed Renewable – individual DI insurance DI

For Producer use only. Not for use with clients. differences Policy form (impact): Group LTD Rate Guarantee Period (RGP) – after RGP, rates can change yearly regardless of the actual claims experience within a company. Opportunity for insurance company to make changes Broker shops the coverage “Perceived” as best time for changes/enhancements Individual DI insurance No renewal – rates and coverage are fixed (Noncancelable only) GSI updates – update in-force benefits, add new lives GSI updates – create opportunities to reinforce and service DI

For Producer use only. Not for use with clients. differences Group LTD pricing thresholds: 60% replacement ratio Usually up to $10,000 maximum benefit Non-contributory vs. contributory Length of Own Occupation period Social Security Normal Retirement Age (SSNRA) vs. To Age 65 Package discounts for STD/LTD are going away DI

For Producer use only. Not for use with clients. differences Group LTD Features and benefits: LTD always requires a loss of income to pay a benefit LTD policy terms like “actively at work” and “working full-time” can have negative impact on people who work 40+ hours “Any Occupation” - does mean vs. does not mean Strict definitions - emphasis on “returning to work” Benefits are offset - SS, SDI, WC, RRR Return to Work benefits - no reduction until >100% Mindset/Experience of LTD claims examiners vs. DI claims examiners DI

For Producer use only. Not for use with clients. differences Compensation Group LTD is not vested – being replaced as “broker of record” is a real threat Commissions – flat, graded, or net of commissions Compensation level tied to annual premium (comp reduces as premium increases) Broker compensation directly impacts the Group LTD premium Bonus programs available DI

For Producer use only. Not for use with clients. differences Individual Producer Relationship with end user Vesting schedule Selling not telling Solution driven Partner with insurance company Technicians Benefits Producer Relationship with buyer No vesting schedule Spreadsheet games (low price) May be distracted by changes with medical business sold Wary of individual underwriting Producer behavioral differences: DI

For Producer use only. Not for use with clients. opening doors Employees – all are important, all are not equal What to look for: Request for increase in Group LTD benefit maximum 66 2/3 LTD plans End of RGP – increases occur Life insurance schedules Classed plans DI

For Producer use only. Not for use with clients. opening doors Open doors lead to census data Census data leads to effective plan design Effective plan design leads to sold cases DI

For Producer use only. Not for use with clients. closing remarks Promote importance of disability income insurance – be it individual or group LTD and become a good steward of your business and our industry It is not group LTD or individual DI insurance – rather, it is designing effective disability income insurance cost and benefit strategies Your GSI Regional Director and the entire GSI team have strong group LTD backgrounds – use us to your advantage! DI

questions? For Producer use only. Not for use with clients.DI

key contacts Your agency or brokerage manager Your Ameritas ® sales development team Your GSI regional director The DI product management team For Producer use only. Not for use with clients.DI