1. selling Business Overhead Expense (BOE) insurance to small business owners DI 1529 9-13 For Producer use only. Not for use with clients.

2. disclosures In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) 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 Ameritas Holding Company. © 2013 Ameritas Mutual Holding Company DI 1529 9-13For Producer use only. Not for use with clients.

3. BOE marketing opportunity There are nearly 7.6 million companies in the United States Approximately 50% of those have less than four employees The majority of small businesses do not carry any DI coverage Source: U.S. Census Bureau, Statistical Abstract of the United States, 2012 For Producer use only. Not for use with clients.DI 1529 9-13

4. Who purchases BOE Insurance? Medical professionals Small business owners Attorneys Architects Insurance professionals For Producer use only. Not for use with clients. BOE marketing opportunity DI 1529 9-13

5. Prospecting for BOE Call your current small business owner clients Contact your local Chamber of Commerce or Small Business Administration office Talk with centers of influence – CPAs or benefits consultants For Producer use only. Not for use with clients. BOE marketing opportunity DI 1529 9-13

6. What is BOE insurance? Provides coverage designed to reimburse owners of small businesses, operated from a location away from the home, for normal and customary expenses necessary to maintain the business while the owner is disabled. Size of business There should be no more than six business owners Otherwise there is a good chance the business will still operate despite the disability of one of the owners – decreases need for BOE insurance For Producer use only. Not for use with clients. BOE marketing opportunity DI 1529 9-13

7. Occupation classes 6A, 5A, 4A and 3A (Non-medical) 6M, 5M, 4M, 3M and 2M (Medical) Issue ages 18-60 (attained age) Definition of Total Disability Own Occupation for the length of the benefit period Specialty Own Occupation language is included for physicians and dentists For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

8. Benefit Periods 12-, 18- and 24-months Elimination Periods 30-, 60- and 90-days Benefit and elimination periods are shorter because: If the owner is gone too long due to disability, the business will either be sold or close, so a shorter benefit period is appropriate The business needs money quickly, so the elimination period is shorter For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

9. Partial Disability Benefit Due to disability, the insured has the ability to: Do one or more, but not all of the main duties of his/her occupation; or Perform all of his/her main duties for 50% or less of the time normally required Up to 50% of the base monthly benefit is payable during a partial disability, for up to 12 months For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

10. Recovery Benefit Built into Partial Disability benefit Pays a benefit for a period of partial disability that immediately follows a period of compensable total disability Up to 75% monthly benefit payable for first month Up to 50% monthly benefit payable thereafter, for up to 12 months Only 20% loss of time required for first two months 50% loss of time required thereafter For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

11. Waiver of Premium benefit If insured is totally disabled for at least 90 days, upon approval of claim, we will waive payment of premiums that come due while he/she remains totally disabled. Any premiums that come due and are paid on or after the date of disability will be refunded. Premiums will continue to be waived as long as totally disability continues, even beyond the benefit period. No agent compensation is paid if premiums are being waived due to disability. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

12. Presumptive Total Disability Total disability is presumed if an insured sustains a total loss of sight of both eyes, hearing in both ears, speech, the use of both hands, the use of both feet, or the use of one hand and one foot – even if he/she is able to work. The elimination period will be waived and benefits are payable as of the date of the presumptive loss. The loss is not required to be permanent or irrecoverable. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

13. Surgical Transplant benefit An insured will be considered totally disabled due to sickness if total disability is the result of having been a surgical transplant donor, provided the transplant occurs more than six months after the issue date. The elimination period will be waived and benefits are payable as of the date of disability. Successive Periods of Disability If a total and/or partial disability stops and then starts again within 180 days from the same/related cause, the two periods of disability will count as one. It will not be necessary to satisfy the elimination period again. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

14. Rehabilitation benefit If we are paying benefits under the policy, we may help pay for a rehabilitation program. The program must be approved by us in advance. The terms of the program, related expenses and total disability benefits during this program are subject to mutual written agreement. We won’t declare someone recovered just because he/she participates in a rehabilitation program. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

15. Good Health benefit For every consecutive year an insured completes without receiving monthly disability benefits under the policy, we will reduce the elimination period by two days. In no case will the elimination period be reduced to less than 30 days. Benefit Continuation after Death Should an insured die after satisfying the elimination period and while benefits are being paid, we will continue to pay covered expenses for up to three months immediately following death. No benefit will be paid for expenses that accrue after the business is sold. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

16. basic policy provisions Accumulation Benefit For any month during total disability that covered overhead expenses are less than or more than the maximum monthly benefit, the difference may be carried forward to the coming month and then applied to covered overhead expenses for that month. At no time will the sum of all benefits paid for any period of total or partial disability combined exceed the maximum overhead expense benefit available. For Producer use only. Not for use with clients.DI 1529 9-13

17. basic policy provisions Extension of Benefits Benefits will continue to be paid beyond the maximum benefit period if: The insured continues to be totally disabled; and The amount paid for this period of total disability was less than the maximum overhead expense benefit. Payments will continue until the total amount of benefits paid for one period of disability equals the maximum overhead expense benefit. At no time will benefits be paid for more than 12 months beyond the maximum benefit period for total disability. For Producer use only. Not for use with clients.DI 1529 9-13

18. For Producer use only. Not for use with clients. accumulation & extension of benefits provision Expenses (in thousands) 76543217654321 JanFeb Mar Apr May Jun Expenses Unused Benefits $4,000 Monthly Benefit DI 1529 9-13

19. For Producer use only. Not for use with clients. accumulation benefit illustration Expenses (in thousands) 76543217654321 Jan Feb Mar Apr May Jun Expenses Unused Benefits $4,000 Monthly Benefit DI 1529 9-13

20. For Producer use only. Not for use with clients. Expenses (in thousands) 76543217654321 Jan Feb Mar Apr May Jun $4,000 Monthly Benefit accumulation benefit illustration Excess Expenses Expenses Unused Benefits DI 1529 9-13

21. For Producer use only. Not for use with clients. Expenses (in thousands) 76543217654321 Expenses Unused Benefits $4,000 x 12 months = $48,000 Jul Aug Sept OctNovDec Jan Feb End of Benefit Period extension of benefit illustration DI 1529 9-13

22. Conversion Privilege At any time prior to age 60, and while the BOE policy is in force and the insured is not disabled, the policy may be converted to an individual DI policy. Premium for the conversion policy will be based on the insured’s age and occupation at the time of conversion and will have benefits equivalent to the original policy. The new policy will be subject to the Issue and Participation limits at the time of the conversion. For Producer use only. Not for use with clients. basic policy provisions DI 1529 9-13

23. No benefit will be paid if total disability is due to: War, declared or undeclared, or any act or incident of war, or as a result of military service when scheduled active duty is more than three months; Intentional self-inflicted injury; Incarceration; Insured’s prevention from working, except as a direct result of sickness or injury, in his occupation as a result of suspension, revocation, or surrender of his professional or occupational license or certification; or Normal pregnancy or childbirth until after 90 days. Benefits will be paid for no more than 12 months during the lifetime of the policy for insureds residing outside of the United States. For Producer use only. Not for use with clients. exceptions/limitations DI 1529 9-13

24. During the first 24 months after policy issue, we will pay benefits for disability caused by or contributed to a pre-existing condition only if that condition is fully disclosed and not misrepresented on the application and is not specifically excluded by name or specific description. A pre-existing condition means any physical or mental condition for which, during the 24-month period preceding the issue date of the policy or rider: An insured has sought medical advice or treatment, undergone diagnostic procedures, or has been prescribed drugs or medication; or A reasonably prudent person would have sought medical advice, care or treatment. For Producer use only. Not for use with clients. pre-existing conditions DI 1529 9-13

25. Helps reimburse the expense incurred to employ another person to perform the duties of the insured in the event he/she becomes disabled. This benefit pays up to 50% of the base monthly benefit, for up to six months and is payable in addition to the maximum monthly benefit for total disability. For Producer use only. Not for use with clients. substitute salary expense rider DI 1529 9-13

26. Guarantees the insured the right to purchase additional coverage with only financial evidence of insurability. Can be exercised on each policy anniversary, up to and including age 55. Insured may purchase up to 50% of the base monthly benefit, not to exceed the amount purchased under this rider. For Producer use only. Not for use with clients. future increase option rider DI 1529 9-13

27. BOE underwriting For Producer use only. Not for use with clients. Financial Documentation Summary – BOE Insurance Amount* $5,000 or lessN/A $5,001 - $14,999Current Profit & Loss (P&L) Statement $15,000 - $20,000Current P&L Statement and last year’s Business tax return >$20,000Last two year’s Business tax returns *Applied for and in force with all companies. The expense section of each BOE application must be completed, even if financial documentation is submitted. DI 1529 9-13

28. BOE underwriting – overhead expenses Eligible Rent Utilities Employee wages Depreciation Interest payments on business debts Business insurance premiums Laundry Dues and subscriptions Maintenance/repairs Not Eligible Salaries of other like professionals Medical supplies Lab fees Travel and entertainment Monies paid to applicant Cost of equipment Automobile Non-recurring expenses For Producer use only. Not for use with clients.DI 1529 9-13

29. BOE underwriting We will pay 100% of covered overhead expenses for which the insured is responsible, up to the maximum monthly benefit on the policy. For Producer use only. Not for use with clients.DI 1529 9-13

30. closing opportunities Business Overhead Expense insurance helps to keep the doors open during disability Many business owners don’t think of injuries or illnesses as things that could close their doors. Emphasize that BOE coverage can provide the money needed to pay the rent and staff salaries if the owner is unable to perform the materials/substantial duties of his/her occupation due to disability. For Producer use only. Not for use with clients.DI 1529 9-13

31. closing opportunities Double Tax Play Every business, regardless of structure, can deduct it’s BOE premiums as a reasonable business expense. Benefits received during disability are considered taxable income; however, they are used to pay tax- deductible expenses – making then net tax-free. For Producer use only. Not for use with clients.DI 1529 9-13

32. closing opportunities Just ask! Very few business owners have been approached to purchase BOE insurance. Use BOE as a door opener for these clients and prospects. For Producer use only. Not for use with clients.DI 1529 9-13

33. questions? For Producer use only. Not for use with clients.DI 1529 9-13

34. 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 1529 9-13