Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. DI /12 The Best Disability Income (DI) Insurance Sales Ideas

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Disability Income insurance (Forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. in approved states. In New York, Disability Income insurance (Forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York. This information is provided by Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York, each a UNIFI® company. Ameritas Life Insurance Corp. is not licensed in the state of New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about UNIFI® Companies, visit UNIFIcompanies.com.UNIFIcompanies.com Ameritas DI SM is a service mark of Ameritas Holding Company. UNIFI® is a registered service mark of UNIFI Mutual Holding Company. ©2012 UNIFI Mutual Holding Company Disclosures

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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 $5000/month - federal income tax free

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Fact Finding for the DI Need

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Demonstrate the Need for DI

Discover DI | from Ameritas Life/Ameritas Life of New York 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!

Discover DI | from Ameritas Life/Ameritas Life of New York 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.

Discover DI | from Ameritas Life/Ameritas Life of New York 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?”

Discover DI | from Ameritas Life/Ameritas Life of New York 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?

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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?

Discover DI | from Ameritas Life/Ameritas Life of New York 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.

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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.

Discover DI | from Ameritas Life/Ameritas Life of New York 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?

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Payroll Deduction

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Some New Concepts Combo Application GSI GSI/Focus 10 Combo “Good, Better, Best”

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Life + DI Limited Underwriting Guidelines Life Insurance Up to $300,000 death benefit EZ App TeleUnderwriting must be used Simultaneous application required (except CA) Individual DI Insurance Up to $5,000/month EZ App TeleUnderwriting required No financial documentation required for non-owners (Business owners follow normal financial documentation guidelines)

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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

Discover DI | from Ameritas Life/Ameritas Life of New York 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 $125,000$4,00048% $160,000$4,80045% $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 $125,000$4,000$2,600$6,60080% $160,000$4,800$3,600$8,40079% $230,000$4,500$5,600$10,10070% $300,000$4,500$6,000$10,50056% Employer-paid LTD only: 60% to $6,000 monthly maximum benefit (base earnings only). Employer-paid LTD with supplemental Individual Disability Income Insurance (assumes $8,000 maximum monthly IDI, employer-paid).

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. GSI/Focus 10 Combo Program Another program that addresses two significant needs at once Disability Income and Life insurance needs Available for groups between 5-19 Minimal underwriting Combined billing statements Can be stand-alone or supplement existing group coverage

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Good, Better, Best

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Send us your Ideas!

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Questions?

Discover DI | from Ameritas Life/Ameritas Life of New York For Producer use only. Not for use with clients. Key Contacts Your Agency or Brokerage Manager Your Regional DI Wholesale Office Your Ameritas Sales Development team The DI Product Management team