Retirement Protection Plus* Protection for Retirement Plan Contributions FOR PRODUCER USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. *Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY (Guardian). Product provisions and features may vary by state.

2 Retirement Planning: A Critical Issue for Everyone Planning and saving for retirement is one of the most critical financial issues that we all face But to complete the plan and assure an adequate retirement income you must be able to work and contribute to that plan

3 Your Retirement Plan is Vulnerable A disabling injury or illness is a serious threat to one’s ability to earn a living… and ability to make retirement contributions.

4 Your Retirement Plan is Vulnerable Contributions continue only as long as you remain on the payroll Group and individual disability insurance do not normally cover retirement plan contributions

5 What’s the Impact? Individual age 35 works to age 65 and makes $1,500 monthly contributions to a defined contribution plan. *Assumes annual rate of return of 8% on retirement contributions with no disbursements taken prior to age 65. This rate is for Illustration purposes only. Actual results may vary. Age $2,235,539*

6 Retirement Protection Plus Helps to protect retirement income in the event of a serious disability Pays benefits to replace lost retirement plan contributions

7 Retirement Protection Plus Program: What is it? A way to use the ProVider Plus policy to help protect your retirement plan. Stand-alone policy* or by rider May replace up to 100% of an employee’s retirement plan contributions, plus the employer’s match Not a pension plan or a substitute for one *The stand-alone policy is not available in CA; the rider is not available in NJ or NY.

8 How It Works Benefits are paid directly into a special trust Trustee is Berkshire Bank, Pittsfield, MA Trust assets are invested by trustee at your direction Trust assets distributed at age 65

9 Retirement Protection Plus Program: How it works Coverage is fully underwritten, but issued separately from any other coverage Over and above normal issue and participation limits Can be employer-pay or individual-pay

10 RPP Program Guidelines Definition of disability: Own occupation and not gainfully employed Elimination periods: 6 or 12 months Benefit period: to age 65 Available to occ classes 6 – 3; 6M – 3M

11 RPP Program Guidelines Maximum benefit: $4,090 per month accommodates 2010 maximum defined contribution limits of $49,000 higher amounts may be considered Catch-up contributions covered for age 50+ (up to $4,550 per month) Minimum issue amount: $500 per month

12 RPP Program Guidelines Issue limits: Employee-paid premiums Up to 100% of current total employee and employer contributions Employer-paid premiums 133% of current total employee and employer contributions Limited to current maximum issue limit

13 Stand-alone RPP Policy: Riders Available COLA (3% or 6%) Future Increase Option (FIO) Up to 2X base policy Total coverage not to exceed $6,000 per month If FIO is not applied for, the Automatic Benefit Enhancement Rider may be attached

14 RPP Program Guidelines Benefit amount issued may include: EE contribution ER match All current discounts apply Multi-policy, ER sponsored, association Classes of risk: Preferred, Select, Standard

15 Eligible Retirement Plans Profit sharing plans Money purchase plans Employee Stock Ownership Plans (ESOP) 401(k), 403(b), 457 plans IRAs & Roth IRAs Note: Plan must be in effect and funded for at least one year.

16 Eligible Retirement Plans Simplified Employee Pensions (SEP) SIMPLE plans Keogh plans Non-qualified deferred comp arrangements considered only on a case-by-case basis Note: Plan must be in effect and funded for at least one year.

17 Non-eligible Retirement Plans Deferred Stock Option Plans Government retirement plans Federal Employees Retirement System (FERS) Civil Service Retirement System (CSRS) Public Employees Retirement System (PERS) State Teachers Retirement System (STRS)

18 Non-eligible Retirement Plans SERPS (Supplemental Employee Retirement Plans) Most Defined Benefit plans Small business defined benefit plans may be eligible (1-3 principals). Insurance-funded plans with waiver of premium

19 Markets for RPP Existing clients Individuals who are contributing to a qualified plan High-income professionals & executives Medical professionals who have “maxed out” on DI coverage Attorneys, dentists, CPAs, etc. Business clients with a retirement plan

20 Opportunity: Talk with CPAs CPAs advise their clients about retirement plans They appreciate being kept up-to-date on latest offerings to help their clients Distinguishes you in the eyes of the CPA

21 Opportunity: RPP in a Worksite Program RPP coverage on a guaranteed standard issue basis Employer-pay or voluntary plans Minimum of… 10 covered employees if employer-paid 75 eligible employees if voluntary Uses Income ProVider policy A terrific opportunity to offer GSI coverage to medical market clients Ask us for more details on our Worksite DI program

22 RPP Underwriting Guidelines Normal medical underwriting guidelines apply If fully underwritten DI policy was issued in the last 6 months by us… completed non-medical documentation of retirement contributions, if required

23 RPP Underwriting Guidelines If applicant has total in-force coverage that is above our current I & P limits for his or her income, we will not count the first $500 against the amount of monthly indemnity issued under the RPP program

24 RPP Underwriting Guidelines Self-employed professionals and business owners generally may include pension contributions when applying for basic DI coverage If contributions are included in earned income, RPP coverage is not permitted If pension contributions are excluded from earned income, RPP coverage is permitted

25 RPP Underwriting Guidelines Total earned income: $300,000 Includes pension contributions of: $45,000 Option 1:Insure $300,000 at $10,700/mo. (assumes individual pay) Option 2:Insure $255,000 at $9,800/mo. plus RPP coverage of $3,750.

26 RPP Underwriting Guidelines ProVider Plus $10,700 ProVider Plus $9,800 RPP $3,750

27 Application Requirements Application for Insurance (DI-2007) For stand-alone policy: Complete the RPP program Supplement (DI-RPP-2007) For RPP Disability Benefit Rider: Indicate on the IDI Supplement (DI-TDI-2007)

28 Financial Documentation RPP program requires standard financial underwriting documentation No proof of retirement contributions required if applying for… Up to 15% of earned income (individual-pay) Up to 19% of earned income (employer-pay) For greater amounts, documentation of plan’s existence, adoption date & employer match For GSI Worksite cases, we will accept an electronic census providing current employee and employer contributions

29 RPP Documents Authorization & Irrevocable Assignment Authorizes establishment of trust Authorizes exchange of information Assigns to trust the right to receive benefits Certifies that client has received Disclosure Statement Disclosure Statement Given to the applicant Outlines tax issues Investment management fees (by investment companies)

30 RPP Documents Declaration of Trust Sample Declaration of Trust may be given to client. The actual Declaration of Trust will be executed at the time of disability

31 RPP Documents RPP Contribution Worksheet For non-owner employees Helps you and the applicant calculate the appropriate applied for amount of monthly benefit Not required, but may be submitted with the application for the underwriter’s use All documents are available at

32 Berkshire Bank Client directs investments of trust asset Select from one of more than 200 equity or fixed income funds available through Federated Investors ( Personal management, full access to capital markets available for trust assets that exceed $100,000

33 Tax Issues Policy benefits… Individual pay: benefits are non-taxable Employer pay: benefits are taxable Trust earnings are taxable to the insured, as the beneficiary of the trust. If policy owner chooses an annuity, there is generally no tax on earnings This publication is provided as a courtesy by Berkshire Life Insurance Company of America and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.

34 Tax Issues Trust reports taxable earnings each year Form 1099 issued to insured Trust will reimburse insured for any taxes paid upon written request may also reimburse the insured for taxes due on employer-paid benefits At distribution: no income tax on funds distributed by the trust for which taxes have been paid This publication is provided as a courtesy by Berkshire Life Insurance Company of America and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.

35 RPP Marketing Tools Producer Guide Letters Brochures Imprintable flyers Sales presentations for employer & employees Byline articles

Retirement Protection Plus* Protection for Retirement Plan Contributions