1. Machinist Custom Choices Program Federal Employee Sector
Supplemental Insurance for America’s Workers

2. Health Problems Create Stress
Illness and medical bills were the cause of 62% of the personal bankruptcies in 2010 – 78% of those families had medical insurance
The families with health insurance reported average out of pocket medical bills of just under $12,000 for major illness or injury.
43% of the cost of treating cancer is not covered by health insurance
20% of cancer patients use all or most of their savings
60% of the population experiences a critical illness (stroke, heart attack, cancer, organ transplant, etc.) before paying off their mortgage
Nearly half of those undergoing treatment for cancer put off care to pay non-medical bills. One in three have struggled to pay for basic necessities such as food.
Studies show that patients who can focus on getting well as opposed to worrying about the cost and their financial situation recover more quickly. 2

3. Machinist Custom Choices Overview
Supplements group benefits provided through the Collective Bargaining Agreement
Completely voluntary and designated for eligible dues paying members as approved by the local lodge
Guaranteed issue – No member is denied coverage
Individually owned – permanent coverage
Available to all family members (employee need not participate)
Premium collected through payroll deduction
Lifetime benefits – policies are portable with no change in benefits or cost
Enrollments conducted by salaried enrollment counselors
Annual reenrollment/policyholder service 3

4. Applications Submited
Life
Critical Illness
Disability
Accident
Applications Submited
What Are Members Buying?

5. Group Term Life Meets a Need - But…
62% of the working population relies on group term life insurance as their sole source of life insurance coverage
How do employees address the need for life insurance when their working days are over? Coverage for their family?
32% of the population is denied or rated when applying for an individual life insurance policy

6. Whole Life Insurance
Available to employees, children, and grandchildren on a truly guaranteed issue basis during their first year of eligibility. This means no health questions of any kind!
Spouse coverage available pending 6 month hospitalization question.
$2 per week assures $17 of guaranteed future insurability.
Cost of life insurance will never go up and death benefit will never go down.
Employee need not apply in order to cover other family members.
All cash values are fully guaranteed.
Unisex and unismoker rates.

7. Weekly Rates $20 a week is Guarantee Issue.
Plan is age based so amount of coverage
$20 a week is Guarantee Issue.
Weekly Rates 7

8. Life Insurance In Force
Face Value
Base Policy Face Amount
29637 Policies in force
$505,073,199
Catastrophic Loss Rider Policies
$ 3,967,000 –monthly benefit
Children’s Term Rider – 1057 Policies
$ 109,180
Accidental Death Benefit Rider
24,345 have benefit that can double or triple in the event of an accidental death
Life Insurance In Force 8

9. 55 paid the Accidental Death Benefit
Claims Paid 880
55 paid the Accidental Death Benefit
Amount Paid $10,808,942
Life Insurance Claims 9

10. Top rated Cancer Plan exclusive for the members of the IAMAW
IAMAW is offering a comprehensive Group Cancer plan to you and members of your family on a Guarantee Issue basis. There is no medical questions necessary.
Hospital Confinement: $200 per day
Surgical: $4500
Chemo/Radiation: $5000 per month, No lifetime Max
Wellness: $50
Covers 32 dread diseases
ICU: $625 per day
Plan is Portable with no Loss of Benefit
Highlights of the Plan

11. Weekly Rates Age Individual Single Parent Family 18-44 $5.73 $6.81
$12.13
45-59
$9.69
$11.54
$19.86
60-74
$12.87
$14.67
$26.39 11

12. Benefits paid directly to the insured upon diagnosis of a heart attack, stroke, cancer, organ transplant, end stage renal failure, coronary artery bypass, ALS (Lou Gehrig’s Disease), loss of sight, speech or hearing, coma, paralysis, severe burns, benign brain tumor and angioplasty and stent insertion.
Eligible children are also covered for the following childhood Specified Critical Illness at 25% of the employee benefit amount: cerebral palsy, cleft lip or palate, down syndrome, cystic fibrosis and spina bifida.
One time skin cancer benefit of $300.
Employee coverage of $15,000 to $50,000
Up to $25,000 of coverage is guaranteed issue for employees.
Dependent children are covered at no additional cost.
Employees may also apply for coverage on their spouse.
NO LIFETIME MAXIUM-additional occurrence and reoccurrence benefits.
Health screening benefit of $50 per year.
Critical Illness 12

13. Weekly Rates Age $15,000 $25,000 $50,000 18-29 $2.52 $3.91 $7.39 30-39
$4.39
$7.03
$13.63
40-49
$7.78
$12.67
$24.91
50-59
$12.75
$20.95
$41.47
60-69
$20.45
$33.79
$67.16
70+
$40.47
N/A 13

14. 25% of employee amount at no additional cost
Total Face Value
Employee
$ 146,331,983
Spouse
$ 24,937,500
Children
25% of employee amount at no additional cost
Critical Illness
In Force
Family Matters. No Matter What. 14

15. Critical Illness Claims
Health Screening - $146, %
Cancer / Screening - $2,560,930, %
Heart Attack - $1,188,658, %
Coronary Artery bypass $139,355, %
Renal Failure - $137,500, %
Stroke - $471, %
Transplant Recipient - %79, %
Claims Paid $4,723,663.55

16. Accident Insurance 24 hour coverage – on or off the job.
Available to all family members.
$400 Emergency Room benefit.
$1,500 plus $300 per day hospital admission benefit.
Up to $50,000 accidental death benefit.
Additional benefits for transportation, lodging, dismemberment, common accidental injuries, and follow-up care.
Lifetime benefit – fully portable at the same cost and benefits.
Benefits do not coordinate with group insurance and are payable directly to the insured. 16

17. Weekly Rates Employee Employee and Spouse Employee and Child Family
$4.53
$7.33
$8.76
$11.55 17

18. Employee, Spouse & Children
Number Covered
Employee
3578
Employee & Children
796
Employee & Spouse
2365
Employee, Spouse & Children
1837
Accident Insurance 18

19. Accident Claims Claims Paid $3,193,765 Ambulance $48,300 1.51%
Emergency Room Benefits $765,748 23
Hospital Admission / Confidence $677, %
Fractures $680%, %
All Other $745, %
Accidential Death Benefit $267,444, %
Claims Paid $3,193,765

20. Short Term Disability
Our Short Term Disability Program is a customized program tailored to your specific workplace. 01
You can chose from a number of elimination and benefit periods. 02
All first time enrollees are Guarantee Issue 03

21. Long Term Disability
During your first year of eligibility, 60% of salary to $3,000 per month is guaranteed issue to all employees who are actively at work.
Tax-free benefits begin after 6 months of disability, and are payable for up to 5 years.
Employees chose a benefit amount of up to 60% of their salary.
Waiver of premium following 90 days of disability.
onthly benefit amounts from $300 to $6,000.

22. Weekly Rates
Both Short and Long Term Disability are currently quoted on a per case basis
Rates are based off a multitude of factors including how much in disability payments you qualify for based on current salary. 22

23. Disability Insurance Incurred Claims $4,697,245 Currently 6148 Active
We currently cover $7,025,465 in Monthly Income Replacement

24. Sample Contract Language
This Agreement acknowledges that {Company Name} has agreed to allow the International Association of Machinists and Aerospace Workers to offer the Machinists Custom Choices Worksite Benefits program of supplemental insurance benefits to their employees in the bargaining unit through their designated agent, Employee Benefit Systems, Inc. (EBS). Members will be given an opportunity to spend fifteen minutes with an EBS Counselor at the worksite during normal working hours, once per year. Further, {Company Name} will honor payroll deduction requests and remit premiums to the underwriting insurance company. All policyholder service will be provided by the underwriter and Employee Benefit Systems, Inc.