Supplemental Income Protection Program PROGRAM FOR OFFERING SUPPLEMENTAL INDIVIDUAL DISABILITY INCOME (IDI) INSURANCE TO EMPLOYEES Taking Your Benefits Strategy Further

Supplemental Income Protection Program Keeping Competitive *LIMRA, Weathering the Storm Report, No cost to the company Attract & retain employees Provides employees a wider array of options Employees ask for the benefit Improves employee morale Better options for employees than purchasing on their own

Supplemental Income Protection Program Average Duration of a Group Long- Term Disability = 2.6 Years * 9 in 10 Employees agree that voluntary benefits add value to their benefits package ** 50% Employees specifically interested in voluntary disability income insurance ** * Gen Re, U.S. Group Disability Rate & Risk Management Survey 2012, based on claims closed in 2011 ** Guardian Workplace Benefits Study, 2012.

Supplemental Income Protection Program The Core to All Planning INCOME Savings & Wealth Building Mortgage Bills Retirement Planning Insurance Purchase of Assets

Supplemental Income Protection Program Common Causes * Muscle, back, joint disorders Multiple Sclerosis Heart Attack Lupus Rheumatoid Arthritis * Council for Disability Awareness, Long-Term Disability Claims Review, 2014

Supplemental Income Protection Program A Great First Step: Group LTD A good foundation –Group plans typically replace 60% of base salary (before tax) –Provide basic protection –Initial rate offered to group is generally low Limitations could lead to inadequate coverage –Highly compensated employees may have the least amount of income replacement due to one-size-fits-all strategy –Taxation can further reduce benefits –Incentive and bonus compensation not covered –Employees don’t own it –Rates and coverage provisions can change

Supplemental Income Protection Program Do they have Adequate Coverage? Could a key employee live off of 40% of their gross income?

Expenses Supplemental Income Protection Program Scenario: Senior Executive Earning $250,000 Monthly Income if Disabled $8,875 $0 $ 2,125 Deficit $0 Net Monthly Income $14,791 $ 3,400 $ 1,500 $ 1,000 $ 1,600 $ 0 $ 200 $ 0 $ 2,700 $ 300 $ 0 $ 11,000

Expenses Supplemental Income Protection Program Scenario: Executive Earning $100,000 Monthly Income if Disabled $3,750 $0 $ 1,700 Deficit $0 Net Monthly Income $6,250 $ 1,400 $ 1,000 $ 500 $ 600 $ 0 $ 700 $ 0 $ 1,200 $ 0 $ 50 $ 0 $ 5,450

An Exceptional Team of Professionals State-of-the-Art Web-based Enrollment System Industry Leadership & Financial Strength Flexible, Tailored, Turnkey Approach Guaranteed Standard Issue with a Robust Individual Product Enhance Disability Benefits & Increase Income Replacement Supplemental Income Protection Program A Powerful Program

Hassle-free Administration No Cost Way to Build Portfolio A Welcome Benefit for Employees Supplemental Income Protection Program Complementing Your Benefit Portfolio Attract, retain, reward Fill a key need Enhances existing coverage Aligns with your benefits culture Turnkey enrollment *Retirement Protection Plus is not a pension plan or a substitute for one. No medical exams (3 “yes/no” questions) Discounts Up to 75% income replacement Individually-owned Non-cancellable More types of income covered ( Bonus compensation and retirement contributions*) Flexible programs (Voluntary, Employer-paid, Cost Share, Carve-out) Customized communication strategy State-of-the-art enrollment capabilities (paper or online enrollment) Flexible billing options including e-billing and automatic payroll deduction

1.Align with your benefit culture 2.Provide first-class service so you can remain focused on your business 3.Utilize an educational approach so every employee feels confident in their purchase decision Supplemental Income Protection Program Unparalleled Enrollment Services Our guiding principles:

Customized on all levels –Employer –Employee –Plan Options 80-85% login rates with online-only enrollments 25% participation on voluntary cases Web security best practices Interactive, education-based tools Easy 3-step enrollment process True e-signature Real-time enrollment tracking Online choice of coverage options Technology Drives Results Supplemental Income Protection Program State-of-the-Art, Highly Secure Enrollment Site

Supplemental Income Protection Program Announce, Educate & Drive to Action Announcement letter Educational campaign Meeting presentations Video presentations Online/paper proposals

Highlights: Guaranteed Standard Issue (GSI) – No medical exam just 3 “yes/no” questions Premium discounts Coverage for bonus/incentive compensation Coverage for retirement contributions (and employer matches) Non-cancellable & guaranteed renewable to age 65/67 Supplemental Income Protection Program Income ProVider

Supplemental Income Protection Program Benefit Program to Meet Your Objectives Increased awareness of current benefits & the value additional income protection can offer Tailored implementation & enrollment strategies designed for your company Provides additional income restoration caused by Group plan limitations Directly impacts your ability to recruit, retain and reward Strengthens benefits portfolio with high quality coverage & significant employee advantages Hassle-free implementation designed to educate & increase employee satisfaction

Next Steps [Discuss Plan Design ] [Accept and Sign Offer Letter] [Provide Complete Final Census] [Provide a copy of your company’s group LTD Booklet] [Begin Implementation Planning] Supplemental Income Protection Program Taking Your Benefits Strategy Further

[Agent Name, Title] [Agent Phone] [Agent ] Supplemental Income Protection Program Thank You 8545 (06/16) (Exp.06/18) Individual disability insurance Policy Form 1200 underwritten and issued by Berkshire Life Insurance Company of America, (BLICOA) Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Product provisions and availability may vary by state. In New York: This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio is 60%. This ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with this policy form. Optional riders are available for an additional premium. This publication is provided for informational purposes only and should not be considered tax or legal advice. Consult your tax, legal, or accounting professional regarding your individual situation.