1. the best DI sales ideas DI 1414 12-13 For Producer use only. Not for use with clients.

2. 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 68510. 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 10018. 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. 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 DI 1414 12-13For Producer use only. Not for use with clients.

3. something old, something new Most of these ideas have been around for years, but since most carriers don’t have a disability product, few producers get training While they may be old to you, they aren’t old to your prospects and clients “Find the blister,” then figure out how to take away the pain DI 1414 12-13

4. For Producer use only. Not for use with clients. first…some oldies Job A vs. Job B Fact finding for the DI need What is your greatest asset? How long was your last vacation? Salary Continuation Planning Payroll deduction Association marketing DI 1414 12-13

5. For Producer use only. Not for use with clients. job A vs. job B Which job would you prefer? Job A: Pays $100,000 a year; however, if you become sick or hurt, it pays nothing; Or Job B: Pays $98,000 a year; however, if you become sick or hurt, it pays you $5,000/month - federal income tax free DI 1414 12-13

6. For Producer use only. Not for use with clients. fact finding for the DI need DI 1414 12-13

7. For Producer use only. Not for use with clients. demonstrate the need for DI DI 1414 12-13

8. For Producer use only. Not for use with clients. what is your greatest asset? Current Age $50,000/yr $75,000/yr$100,000/yr$150,000/yr$200,000/yr$250,000/yr$300,000/yr 30$1,850,000$2,775,000$3,700,000$5,550,000$7,400,000$9,250,000$11,100,000 35$1,600,000$2,400,000$3,200,000$4,800,000$6,400,000$8,000,000$9,600,000 40$1,350,000$2,025,000$2,700,000$4,050,000$5,400,000$6,750,000$8,100,000 45$1,100,000$1,650,000$2,200,000$3,300,000$4,400,000$5,500,000$6,600,000 50$850,000$1,275,000$1,700,000$2,550,000$3,400,000$4,250,000$5,100,000 55$600,000$900,000$1,200,000$1,800,000$2,400,000$3,000,000$3,600,000 60$350,000$525,000$700,000$1,050,000$1,400,000$1,750,000$2,100,000 Sales Idea – Make them go through the process of identifying what they have at risk…don’t do it for them! DI 1414 12- 13

9. how big is the small business market? For Producer use only. Not for use with clients. A recent study by the U.S. Small Business Administration’s (SBA) Office of Advocacy counted 26.8 million businesses in the United States; 99.9% have fewer than 500 employees 98.2% have fewer than 100 employees 89.3% have fewer then 20 employees 78.6% have fewer than 10 employees 60.8% have fewer than 5 employees. DI 1414 12- 13

10. For Producer use only. Not for use with clients. how long was your last vacation? In the small business market, the business owners handle the financial, buying and selling of supplies or inventory, public relations, advertising, hiring/firing, etc. When they say that they would continue to pay themselves if disabled ask them, “Can you imagine yourself taking a 30-day or longer vacation?” They will likely tell you they could never be out that long due to the business...Ask them, “Would a period of disability be any less harmful to the business?” DI 1414 12-13

11. For Producer use only. Not for use with clients. questions to ask the small business owner Who would you tap to keep the doors open while you are out? Would the cash flow continue in your absence? For how long? Is this person capable of or trained to solicit new accounts? Is your business and its worth important to your retirement? What would the business be worth after three months... six months...a year? DI 1414 12-13

12. For Producer use only. Not for use with clients. salary continuation planning Tax guidance which outlines requirements to have a valid salary continuation program Allows you to demonstrate to the business owner some planning techniques that can help the company and the key employees Can result in either individual or multi-life sales DI 1414 12-13

13. For Producer use only. Not for use with clients. what is a salary continuation plan? A tax-favored salary continuation plan means an employer agrees to continue paying an employee who becomes sick or hurt and is unable to work A plan that is in place prior to any period of disability. While it is not necessary that it be in writing, it must be known by the covered employees It can be self-insured or insured ERISA considerations DI 1414 12-13

14. For Producer use only. Not for use with clients. A salary continuation plan defines: Who receives benefits; How much; For how long; and Under what conditions those benefits are payable during a period of disability. what is a salary continuation plan? DI 1414 12-13

15. For Producer use only. Not for use with clients. government requirements for salary continuation plans The plan should be in writing, although other forms of notice may suffice; The plan must be in effect before a disability occurs; The plan must be communicated to participating employees; The plan must be set up solely for employees (not shareholders, unless also employees); and The benefits cannot be considered excessive. DI 1414 12-13

16. For Producer use only. Not for use with clients. why establish a salary continuation plan? The regulation under Section 105 of the Internal Revenue Code describes an accident or health plan as “…an arrangement for the payment of amounts to employees in the event of personal injuries or sickness.” Plans must be for the protection of employees of the firm...not shareholders Various tax court rulings highlight the need to have the plan, in place, and in writing, or known by the covered employees, prior to the disability DI 1414 12-13

17. For Producer use only. Not for use with clients. what are the advantages of a salary continuation plan? Clarifies that the continued salaries are tax-deductible payments to the disabled employee, which is good for the employer Requires payments to the disabled employee, which is good for the employee Provides stronger likelihood of payments by establishment of the plan DI 1414 12-13

18. For Producer use only. Not for use with clients. advantages of having and funding a plan No PlanSelf-Funded Insured Revenue $100,000 Income Tax *- 34,000 Net Profit 66,000 Sick Pay - 30,000 Retained Earnings $36,000 Revenue $100,000 Income Tax *- 34,000 Net Profit 66,000 Sick Pay - 30,000 Retained Earnings $36,000 Revenue $100,000 Sick Pay - 30,000 Pre-Tax 70,000 Income Tax* - 23,800 Retained Earnings $46,200 Revenue $100,000 Premium** - 1,000 Pre-Tax 99,000 Income Tax* - 33,660 Retained Earnings $65,340 plus DI Benefits $30,000 * *Assumes a 34% corporate tax rate. **Approximate annual cost of insuring a 35-year old employee with $30,000 annual benefit to age 65. DI 1414 12-13

19. For Producer use only. Not for use with clients. payroll deduction Allows you access to an employer’s employees Work on getting the employer’s support Use of conference room, payroll stuffers, etc. Demonstrate the power of the discounts and, if appropriate, unisex pricing What is involved? DI 1414 12-13

20. For Producer use only. Not for use with clients. payroll deduction DI 1414 12-13

21. For Producer use only. Not for use with clients. association marketing What does this provide to you? Ready market Marketing support to gain appointments Referral base Tangible advantage to the members and the association Ongoing relationship if you are smart and work it correctly DI 1414 12-13

22. For Producer use only. Not for use with clients. tools for association marketing Materials available to you: Association Marketing Agent Guide Pre-approach letter PowerPoint Presentation for use with executive director and board members Announcement Letter Press Release Ad slicks Postcards DI 1414 12-13

23. For Producer use only. Not for use with clients. some new concepts Combo Application GSI “Good, Better, Best” DI 1414 12-13

24. For Producer use only. Not for use with clients. combo life and DI sales Life + DI Limited Underwriting program Taking care of two needs with one application Advantages Applications are synced up to expedite the underwriting Smooth processing with one Underwriting and New Business contact from submission to issue DI 1414 12-13

25. For Producer use only. Not for use with clients. life + DI limited underwriting guidelines Life insurance Up to $300,000 death benefit EZ App must be used Simultaneous application required (except CA) Individual DI insurance Up to $5,000/month EZ App must be used No financial documentation required for non-owners (Business owners follow normal financial documentation guidelines) DI 1414 12-13

26. For Producer use only. Not for use with clients. Guaranteed Standard Issue (GSI) What are the advantages to you? Minimal underwriting Ease of gathering necessary group information What are the advantages to the employer and the employees? Discounted unisex rates Can supplement existing group LTD plans or provide disability coverage where no LTD plan exists Can be used as a perk to recruit, reward, or retain key employees DI 1414 12-13

27. For Producer use only. Not for use with clients. what is “reverse discrimination?” LTD Plan - 60% to $10,000 Four employees: Non-executive - $50,000 salary Exec 1 - $100,000 salary/ $ 50,000 bonus Exec 2 - $200,000 salary/$100,000 bonus Exec 3 - $300,000 salary/$200,000 bonus 60% Non-executiveExecutive 1Executive 3Executive 2 40% 24% Highest income earners receive lowest percentage of benefit…reverse discrimination DI 1414 12-13

28. For Producer use only. Not for use with clients. example of GSI supplementing group LTD Total Income w/ Bonus Net Monthly LTD Benefit* % Net Income Replaced* $130,000$3,75046% $160,000$4,50045% $230,000$4,50031% $300,000$4,50024% Total Income w/Bonus Net Mo. LTD Benefit* Individual DI Net Benefit Combined Net Mo. Benefit % Net Income Replaced* $130,000$3,750$3,000$6,75083% $160,000$4,500$3,750$8,25083% $230,000$4,500$7,425$11,92583% $300,000$4,500$11,025$15,52583% Employer-paid LTD only: 60% to $6,000 monthly maximum benefit (base earnings only). Employer-paid LTD with supplemental Individual Disability Income Insurance DI 1414 12-13 *Assumes 25% tax rate at all incomes.

29. For Producer use only. Not for use with clients. good, better, best DI 1414 12-13

30. For Producer use only. Not for use with clients. send us your ideas! DI 1414 12-13

31. questions? DI 1414 12-13For Producer use only. Not for use with clients.

32. 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 1414 12-13