1. 1 Disability benefits designed to protect your workforce Options for the legal services industry | May 2013 MK-3112 (5-13)

2. 2 Unum: A leading provider of disability benefits 1 Gen Re U.S. Group Disability Market Survey, 2011, based on inforce cases, and LIMRA, Individual Disability Income Sales and In-Force Survey Annual Review 2011, based on multilife inforce policies. 2 Employee Benefit Plan Review, Group Accident & Health Surveys 1976–1990 (1977 – 1991) ; Gen Re, U.S. Group Disability Market Surveys 1991 –2 012 (1992 – 2013). 3 "Largest U.S. Corporations," Fortune (May 21, 2012); Unum customer database 2012. 4 Group market share data, 2010-2012. New sales market share data 4 Case sizeLTDSTD 1,000+7.1% – 500 to <1,00040.0%33.3% 100 to <50020.4%20.5% 50 to <10016.4%15.2% 10 to <5022.4%27.0% #1 group disability and individual disability 1 Serves 32% of Fortune 500 companies 3 37 years as the industry leader in group disability insurance 2

3. 3 Unum: Providing financial protection for law firms large and small Long term disability (LTD) policies Short term disability (STD) policies Integrated (LTD & STD) policies Inforce policies for law firms 57 % 19 % 24 %

4. 4 Benefit percentage: STD – Smaller firms most often choose higher benefit percentages than larger firms 1.Remove all pie charts except the one for your audience. 2.Click on the remaining pie chart. 3.Click on the Format tab, then click on the small icon at the bottom right of the Size box. 4.In the new window, change the height and width to 200% and close the window. 5.Move the pie chart to the center of the slide. (See next slide for example of finished slide.) 6.Finally delete these instruction slides (4 & 5). Instructions to prepare the STD and LTD pie chart slides (slides 10 & 11)

5. 5 Benefit percentage: STD – Smaller firms most often choose higher benefit percentages than larger firms SAMPLE ≥ 50% <50% to 60% <60% or flat benefit amount

6. 6 Benefit percentage: STD – Smaller firms most often choose higher benefit percentages than larger firms ≤ 50% >50% or ≤ 60% >60% or flat benefit amount

7. 7 Benefit maximum: STD – Larger firms choose a lower maximum benefit amount than smaller firms <$500 $500–$999 $1,000–$1,499 $1,500–$1,999 $2,000+

8. 8 Elimination period: STD options for law firms  The elimination periods of 0/7, 7/7 and 14/14 are significantly higher than other options for small law firms with under 50 employees  The elimination periods of 7/7, 8/8, and 14/14 are significantly higher for mid-sized firms with 50-499 employees  The 8/8 elimination period is most popular for law firms with over 500 employees Percentage choosing elimination period option Employer size (# of EEs) 0/71/87/78/814/1430/3059/5960/60Other 11–49232199248286 50–991121525216488 100–49913-2031188236 500–999--3358----8 1,000+--3356----11 HIGHLIGHTS

9. 9 Benefit percentage: LTD – All sized firms most often choose >50% or ≤ 60% benefit percentage ≤ 50% >50% or ≤ 60% >60% or flat benefit amount

10. 10 Benefit maximum: LTD – Larger firms choose a higher maximum benefit amount than smaller firms <$10,000 $10,000-$14,999 $15,000-$19,999 $20,000-$24,999 $25,000+

11. 11 Elimination period: LTD options for law firms  The elimination periods of 90 and 180 days are most common with law firms that have under 1,000 employees  The elimination periods of 180 and 360 days are most common for law firms that have over 1,000 employees  A majority of firms with 500-999 employees choose 180 days while 90 and 360 days are a close second choice Percentage choosing elimination period option Employer size (# of EEs) 90 days60 days180 days360 days 11–49760231 50–99712261 100–499581392 500–9991906417 1000+1635526 HIGHLIGHTS

12. 12 Definitions of disability: STD choices to fit your firm Standard definition Total disability  Must be completely disabled and not working to receive benefits Residual disability  Must be partially disabled with a 20% or more earnings loss  Allows them to work during the elimination period Partial disability  Must have received total disability benefits for four weeks, are still considered disabled, but:  Have returned to work to perform at least one “material and substantial” duty and;  Have at least a 20% or more loss in weekly earnings

13. 13 Definitions of disability: STD – Residual is most popular for small firms, total is most popular for large firms % Residual % Total % Partial STD definitions by employer size 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent of option 0255075100 67% 33% 0% 75% 25% 0% 45% 47% 8% 37% 49% 14% 33% 53% 14%

14. 14 Definitions of disability: STD – Mental and nervous (M&N)  Covers disability due to mental or nervous conditions  All law firms choose this provision and a majority choose a monthly limit Percent choosing a monthly limit 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent 0255075100 34% 66% 31% 69% 10% 90% 6%6% 94% 2%2% 98% Unlimited Limited

15. 15 Definitions of disability: LTD choices to fit your firm Standard Definition Also available as an “OR” definition Long term income protection (LTIP)  Allows employees with a partial disability to receive benefits and allows them to work during the elimination period  Benefits attorneys who are losing income, but still able to work – allows them to rebuild their client base  Helps attorneys with partnership distributions, deferred compensation or trailing income  Does not require an income loss if totally disabled and not working  Recovery benefit automatically included 2-year own occupation w/residual  Allows disabled lawyers to receive benefits when they can no longer work as lawyers Specialty  Evaluates lawyers based on the ability to perform specific duties required for the specific type of law they practice

16. 16 Definitions of disability: LTD – LTIP definition  May work during the elimination period and does not need to report an earnings loss  Following the elimination period, individual must be at least partially disabled and have a 20% or more earnings loss in order to receive benefits  The larger firms use LTIP most often, with 92% of the firms with over 1,000 employees choosing this definition Larger firms choose LTIP definition most often 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent choosing LTIP definition 0255075100 708583 88 92

17. 17 Definitions of disability: LTD – 2-year own occ. w/ residual definition  After 24 months, if the employee can no longer perform the duties of the occupation for which they are reasonably fitted by education, training, and experience, they can receive additional benefits  Requires 20% or more monthly earning loss  Only offered to individuals with LTD and IDI coverage Smaller firms choose this definition most often Firms with 11–49 employees choose this definition most often

18. 18 Definitions of disability: LTD - specialty definition  Recognizes different requirements for different legal specialties  Considers the duty of the type of lawyer when evaluating the disability claim (ex. Unum would look at the duties of a trial lawyer versus one in a general practice)  The larger firms choose the specialty definition most often, with 69% of firms with 500–999 employees choosing to add it and 62% of firms with over 1,000 employee choosing to add it to their contract Larger firms choose specialty definition most often 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent choosing specialty definition 0255075100 374956 69 62

19. 19 Definitions of disability: LTD – LTIP is most popular Disability definition choice by employer size Percent offering definition Employer size (# of EEs) 2-year with residual 2-year with residual with specialty LTIP LTIP with specialty LTOC LTOC with specialty Other 11–4917%2%36%33%5%2%5% 50–998%0%39%47%3%2%1% 100–4996%1%30%54%3%1%5% 500–9994%2%21%67%4%0%2% 1,000+3% 32%59%3%0%

20. 20 Additional definitions Disability Plus “Dis plus”  Pays an additional benefit when an employee suffers a covered catastrophic disability  Most common among law firms with 500 or more employees Cost-of- Living Adjustment (COLA)  Provides annual cost-of-living adjustment for individuals receiving benefits  Most common among law firms with 100 or more employees and particularly popular with those with 500 – 1,000 employees Recovery Income Protection  Provides a benefit when an employee returns to work full- time, but still has a loss of income due to a prior disability  Helpful for attorneys who need time to rebuild their practice Definitions of disability: LTD additional choices to fit your firm

21. 21 Funding options: STD – A variety of funding options are chosen Employer-paid Employee-paid Shared STD funding by employer size 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent 0255075100 67% 11% 22% 33% 17% 50% 54% 30% 16% 56% 34% 10% 41% 54% 5%

22. 22 Funding options: LTD – A majority require employees to pay for coverage LTD funding by employer size 1,000+ 500–999 100–499 50–99 11–49 Employer size (# of EEs) Percent 0255075100 82% 10% 8% 83% 13% 4% 60% 31% 9% 56% 39% 5% 61% 34% 5% Employer-paid Employee-paid Shared

23. 23 Integrated coverage: Group STD and LTD Group STD Can provide coverage for injuries or illnesses that last up to one year Up to $2,500 weekly maximum benefit* *Benefits may be subject to pre-existing conditions Year 1 Year 2 Group LTD Can provide coverage for injuries or illnesses that last more than a year Picks up where the STD policy ends so employees do not wind up “between plans” and face a gap in income Up to $15,000 monthly maximum benefit

24. 24 Integrated coverage: LTD and individual disability insurance (IDI) can provide extra protection Group LTD 0% 20% 40% 60% 80% 100% $100,000$150,000$200,000$250,000$300,000$350,000 Annual earnings Income replacement Back to gross replacement goal IDI LTD benefit maximum + IDI benefit maximum = comprehensive disability protection

25. 25 Do your benefits fit your firm? Unum can consult with you We can:  Model plans that fit your overall structure and compensation schemes  Develop different plan designs targeting different employee populations  Help you to protect your highly compensated employees  Align compensation programs with disability plan for optimal protection  Share insights on plan designs used by others in the industry Through our:  Disability definitions  Funding options  Benefit levels  Multi-life IDI  Benefit maximums  Elimination periods  Additional provisions

26. 26 Unum and You: A consultative partnership Your disability plans are compatible with your overall compensation strategies. We will help ensure We are ready to Consult with you on providing the right level of financial protection for you and your employees. To help you Meet your obligations and preserve the practices that exist in your firm with best-in-class customer service and claims response.

27. 27 Thank you for your time! Any questions? MK-3112 (5-13) FOR BROKERS AND EMPLOYERS Unless otherwise noted, Unum internal data as of December 31, 2011. Underwritten by: Unum Life Insurance Company of America, Portland, Maine In New York, by: First Unum Life Insurance Company, New York, New York This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The policies or their provisions may vary or be unavailable in some states. The policies have exclusions and limitations which may affect any benefits payable. See the actual policy or your Unum representative for specific provisions and details of availability. unum.com © 2013 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries.