1. University of Connecticut Health Center Disability Insurance Policy Conversion Presentation Presented by Shawn Stuart, RHU President HSA Consulting, Inc. 888-978-8355shawn@hsac.com

2. Table of Contents Protecting Your Most Valuable Asset The Risk of Disability What to Look For In a Quality Disability Policy UCHC Group Student Disability Policy Guarantee Conversion Option Next Steps

3. Protecting your most valuable asset – Your Ability to Earn Income The average income for a general dentist is $161,410 (May 2010 US Dept. of Labor Bureau of Labor and Statistics) 30 Year Career @ $161,410 / Year - $4,842,300 30 Year Career @ $161,410 / Year - $4,842,300 35 Year Career @ $161,410 / Year - $5,649,350 35 Year Career @ $161,410 / Year - $5,649,350 40 Year Career @ $161,410 / Year - $6,456,400 40 Year Career @ $161,410 / Year - $6,456,400

4. Disability Insurance – The Need If you were unable to work due to sickness or injury how would you pay for: Your mortgage or rent Buy food Pay your utilities Make your car payment Make Student Loan payments

5. Dental Student Educational Debt Grad YearAll SchoolPublicPrivate 2009$163,535$140,831$194,665 2010$177,144$157,564$207,824 Dentist ADentist BDentist CDentist D Amount Borrowed$175,000 $200,000 Length of Loan (years) 10151015 Interest Rate6% Monthly Payment$1943$1477$2,220$1688 Total paid over repayment period $233,100$265,860$266,400$303,840 Source: http://www.ada.org/sections/educationAndCareers/pdfs/finplanOSA.pdf

6. THE RISK OF DISABILITY: COULD IT HAPPEN TO YOU? A 20 year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age. (www.socialsecurity.gov/dibplan) A 20 year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age. (www.socialsecurity.gov/dibplan)www.socialsecurity.gov/dibplan The number of workers who become disabled has risen by 35% since 2000 as reported by the Social Security Administration. (www.disabilitycanhappen.org/news/survey_summary.asp) www.disabilitycanhappen.org/news/survey_summary.asp Disability is the leading cause of personal bankruptcies. It causes nearly 50% of all mortgage foreclosures, compared to 2% caused by death (Health Affairs, The Policy Journal of Health Sphere, 2 February 2005) More than 70% of working Americans do not have enough savings to meet short-term emergencies, let alone long-term disability (National Investment Watch Survey, A.G. Edwards Inc., 2004)

7. EVERY 4 SECONDS AN INJURY OCCURS IN THE HOME -NATIONAL SAFETY COUNCIL, “INJURY FACTS,” 2007 EDITION THE LEADING CAUSES OF DISABILITY Major Disablers % of new claims Musculoskeletal/ connective tissue 22.7% Cancer 13.6% Injuries/Accidents 7.8% Mental/psychiatric 6.5% Neurological 5.7% 2006 Long-Term Disability Claims Review, Council for Disability Awareness

8. WHAT TO LOOK FOR In a High-Quality Disability Income Insurance Policy LOOK FOR THESE BASICS LOOK FOR THESE BASICS 1. Can’t be canceled by the insurer 2. Pays you a monthly benefit if you are disabled in your own occupation 3. Offers a variety of built-in policy provisions 4. Includes or offers a selection of optional benefits

9. Renewability Provision: KEEPING PROTECTION IN FORCE KEY DIFFERENCE! KEY DIFFERENCE! When your policy is both non-cancelable and guaranteed renewable, only you can request changes be made or the contract be cancelled.

10. Total Disability: WHEN BENEFITS ARE PAYABLE KEY DIFFERENCE! KEY DIFFERENCE! Due to injury or sickness, you are unable to perform the substantial and material duties of your own-occupation even if you are employed in another occupation. If you have limited your occupation to the performance of a single medical or dental specialty, we will deem your specialty your occupation.

11. Built-In Basics: POLICY PROVISIONS and DEFINITIONS » Waiting / Elimination Period: the number of days that must elapse before you are eligible for a benefit » Waiver of Premium Benefit: no premiums are due while you are receiving payments » Benefit Period: how long benefits are payable » Unlimited Mental Disorder/Substance Abuse (MDSA) coverage in the base contract for all occupations

12. Other Vital Benefits in a High- Quality Disability Plan: RESIDUAL DISABILITY BENEFIT RIDER COST OF LIVING ADJUSTMENT RIDER FUTURE PURCHASE OPTION LIFETIME BENEFIT PERIOD

13. DI Insurance Comparison 4 th Year Dental Student Age 25 Carrier The StandardMetLifeGuardian Policy Series Protector PlatinumNon-Can Series 44011400 Series Base Benefit $2,500 Elimination Period 90 Benefit Period Age 67Age 65 w/ GLB Renewability Provision Non cancelable to 67Non cancelable to 65Non-cancelable to 65 Own Occupation Definition Own occupation for the benefit period Own Occupation rider- Own occupation for the benefit period Own occupation including your specialty for the benefit period Residual Benefit 20% loss time, duties or income 20% loss of income, time or duties15% loss of income COLA 3% tied to CPI compound3% simple3% compound Future Purchase Options $7,500$7,500 in units of $1,000$7,500 Mental or Nervous Disorders Limitation No Limit AM Best Rating as of 8/2011AA+ Monthly Premium - Level Male $106.31 / Female $181.20 Male $169.31 / Female $273.78 Male $130.99 / Female $189.49 Monthly Premium - GradedN/A Male $76.31 / Female $100.41 Maximum Income Protection$220,000

14. UCHC Student Group Disability Plan Elimination Period:90 Days Duration of benefits:SSNRA Monthly Benefit:$2,000 Disability Definition:2-Year Student/Any Occupation Thereafter Mental and Nervous Limitation:24-Month Lifetime Payment Limitation Loan Payoff:$100,000 Cost of Living Benefit:3% Fixed With Unlimited Adjustments Survivor Benefit 3 X the Last Monthly Benefit Pre-existing Conditions Limitation:3 Months Prior/12 Months After Conversion Privilege:Yes, MD Group Trust Then IndividualDDS to Individual Non-Can Own-Occ

15. Guarantee Conversion Option This plan includes a conversion option to convert your disability insurance when you begin your residency training or go practice Dentists entering residency or practice may covert to an individual Non-can Own-Occ policy up to $2,000 Policy is Guarantee issue without medical underwriting

16. Insurability Did you know……. 20-25% of you are NOT insurable!! Are you? Many “minor” medical conditions can prevent you from obtaining an individual disability income policy.

17. Common “Issues” that cause you to be Uninsurable Recent Needle Sticks Abnormal Blood Chemistry Abnormal Pap Smear Results Certain Prescription Medications Diabetes Repetitive Use and Carpal Tunnel Issues Latex Allergies and Other Skin Disorders Back or Neck Treatment by Doctors or Chiropractors Doctors Appointments for Stress, Anxiety, or Depression

18. What’s the Next Step? Your enrollment in the UCONN student group disability plan will end June 30 th. For most of you qualifying for an individual disability policy will be easy. However, each year we see 20-25% of dental students denied coverage due to pre-existing health conditions. In order to discern whether you should take advantage of the UCONN group conversion plan, it is recommended that ALL graduating dental students make application for disability coverage while they are still at UCONN School of Dental Medicine. To determine your insurability by making a no obligation disability insurance application or to convert your UCONN School of Dental Medicine group disability plan, please contact Matt Graff at………………….

19. Questions? Please feel free to contact me if you have additional questions. Shawn Stuart, RHU President HSA Consulting, Inc. 888-978-8355shawn@hsac.com