All Product and Training Information Contained in this Presentation is Intended For Agent Use Only. This Piece is Not Intended to Create Public Interest in an Insurance Product, or in an Insurer or Agent.

 Addresses Seniors’ Concerns About Health Care Costs  Room in the Market for New Carriers Medicare Supplement  Seniors Eligible for Open Enrollment at Age 65 with Medicare Part B A Tremendous Opportunity for You!

v Clients Convinced of Need v Great Door Opener v Cross Selling Opportunities with Golden Promise® v Consistency of Benefits Across All Plans v Large, Growing Number of Clients Medicare Supplement  A Tremendous Opportunity

v Supplementing Expenses not Covered by Medicare u Co-Pays u Co-Insurance u Deductibles Medicare Supplement  Meeting Senior Needs

 Wakely Actuarial & Wakely and Associates, Inc. Medicare Supplement  Partnering with an Expert

 Competitive Rates  Competitive Compensation Medicare Supplement  Plans A – G

 Plan A – G All Include Basic Benefits Medicare Supplement  Benefit Plans Overview

v Hospitalization – Part A coinsurance plus coverage for 365 days after Medicare benefits end v Medical Expenses – Part B coinsurance (generally 20% of Medicare approved expenses) or co-payments for hospital outpatient services v Blood – First three pints of blood each year Medicare Supplement  Basic Benefits

Outline of Medicare Supplement Coverage A-G ABCDEFG Basic Benefits Skilled Nursing Facility Coinsurance Part A Deductible Part B Deductible Part B Excess 100% 80% Foreign Travel Emergency At-Home Recovery Preventive Care Not Covered by

Medicare Supplement Buyer Plan Selection 70% Purchase Plan F 15% Purchase Plan C

 Complete all information on app  Complete all health questions (except for open enrollment or guaranteed issue)  Apps must be received within 30 days of date app was signed  Complete Medicare Part B enrollment date and/or Medicare Claim number  Full modal premium must be submitted with app  When applying for guar issue, include documentation establishing guar issue rights Medicare Supplement To Avoid App Processing Delays

 Include all required forms v Replacement forms – when replacing Med Supp, Medicare Select, HMOs, Medicare Adv, Employee health plans, etc. v Illinois checklist required for all IL apps v Missouri – documentation proving existence of qualifying coverage for annual open enrollees (must include name, policy #, effective date, plan enrolled in & paid to date) Medicare Supplement To Avoid App Processing Delays

 Applicant’s signa ture is missing or altered  Agent’s signature is missing or altered  Incorrect state approved app is submitted  3 or more questions are left blank  App is not received within 30 days of date app is signed  Effective date requested is too far in future (see Agent Underwriting Guidelines booklet # 5768 – page 4) Medicare Supplement New Apps will be required when:

 Applicant doesn’t recall filling out the app  App is completed & signed by family member  App is signed by POA or other representative (when not within open enrollment or guaranteed issue period)  Any “yes” answer to medical & health questions (except for open enrollment & guar issue)  Applicant is unable or unwilling to complete telephone interview Medicare Supplement Apps will be declined when:

 App was taken by agent not licensed & appointed in state at time of solicitation  Additional forms requested by underwriter not submitted within allotted timeframe  If Residence State of applicant & Application Signed State do not match  Apps are taken over the phone or through the mail Medicare Supplement Apps will be declined when:

Medicare Supplement Bank Draft Dates Policy Effective Date Draft Date Between 1 st & 10 th On/about the 10 th Between 11 th & 20 th On/about the 20 th Between 21 st & 28 th On/about the 28 th  Policies cannot be effective on the 29 th, 30 th or 31 st. Apps written on these days will be effective on the 1 st of the next month (or 28 th of same month upon request).

 Standard - if tobacco has been used in past 36 months  Preferred – if no form of tobacco has been used in past 36 months Medicare Supplement Underwriting Classification

 Policies mailed according to the “Mail Policy To” question in section 1 of app (insured or agent)  If question is left blank, policy will be mailed to agent  For KY, LA, NE & WV: if delivered by agent, policy will not become active (or commissions paid) until the delivery receipt & any other outstanding requirements are returned (additional requirements in NE) Medicare Supplement Policy Delivery

Medicare Supplement Buyer Profile 90% NonTobacco, 10% Tobacco 10% Age 65 14% Age 66 – 68 19% Age 69 – 71 19% Age 72 – 74 17% Age 75 – 77 13% Age 78 – 80 8% Above Age 80 60% Female, 40% Male

v Rates are critical since benefits are standard v Vary by state v Even by zip code v Based on issue age or attained age v Annual increases for attained age policies v Level rates for issue age policies unless rate increases are filed v Customary to file annual rate increases with State DOIs for approval v Male/Female and Standard/Preferred rates Medicare Supplement  Rates

v Arizona v Florida v Georgia v Missouri  Community Rated State v Arkansas Medicare Supplement  Issue Age States

AlabamaMarylandTennessee ColoradoMichigan Texas DelawareMississippiVirginia DCNebraskaWest Virginia Illinois New Mexico IndianaNorth Carolina Iowa Ohio KansasOklahoma KentuckyPennsylvania LouisianaSouth Carolina Medicare Supplement  Attained Age States

Medicare Supplement Rate Comparisons Florida, Female, Age 67 Plan F, Annual, Rural Areas Lincoln Heritage$1,876 SHENANDOAH LIFE$1,912 United World$1,962 Continental Life$2,009 United Teacher Assoc.$2,029 Mutual Of Omaha$2,100

Medicare Supplement Rate Comparisons Michigan, Female, Age 65, NS Plan F, Monthly, Rural Areas Lincoln Heritage$ SHENANDOAH LIFE$ Pacificare$ Conseco$ Mutual Of Omaha$ United Teacher Assoc.$ Standard Life$152.23

 50% of First Year Annualized Commissionable Premium Medicare Supplement  Production Credit

Medicare Supplement State Licensing Health license required Majority of states have separate lines of authority for Life & Health (not a separate license) AlabamaIowaMichiganNew Mexico ArkansasIllinoisMinnesotaOhio ArizonaIndianaMissouriOklahoma ColoradoKansasMississippiPennsylvania DelawareKentuckyNebraskaSouth Carolina FloridaMarylandNew Jersey Tennessee North Carolina requires a special Medicare license

MAIL YOUR MEDICARE SUPPLEMENT APPLICATIONS TO: For US Postal Service Mail: Shenandoah Life New Business P.O. Box Clearwater, FL For Overnight Mail: Shenandoah Life New Business th Avenue North, Suite 200 Largo, FL

Call Wakely Administration with your Underwriting / Policyowner Services / Claims questions.

Atlantis: Beyond Your Imagination! Convention 2008 Paradise Island, Bahamas

Shenandoah Club Qualification period: January 1 – December 31, 2007 Pro rata qualifying available! Contract Date Agent Agency January, 2007 or Prior $65,000 $200,000 February, 2007 $62,000 $191,000 March, 2007 $59,000 $182,000 April, 2007 $56,000 $173,000 May, 2007 $53,000 $164,000 June, 2007 $50,000 $155,000 July, 2007 or After $47,000 $146,000 A minimum of 15 lives is required Minimum 78% rolling 13-month persistency required

Leaders’Circle Qualification period: Jan. 1 – Dec. 31, 2007 Writing Agent$120,000 Agency $375,000 A minimum of 15 lives is required Minimum 78% rolling 13-month persistency required