1. Life Insurance for Life The Power of Living Benefits

2. Sales Concept: Covering the Healthcare Insurance Gap w/Living Benefits

3. In fact, 62% of bankruptcies are due to a critical illness. And 75% of those who filed for bankruptcy had a health insurance policy.¹ Men have a 1 in 2 risk of developing cancer during their lifetime and women have a 1 in 3 risk.² Yet, nearly two-thirds of cancer-related costs are NOT medical.³ We believe that a solid financial foundation includes health insurance and yes, life insurance. Here’s why… Health Insurance alone…. doesn’t cover all things for all people… For Training Purposes Only- Agent Use only ¹ The American Journal of Medicine, 2009. ² Cancer Facts and the War on Cancer. LIMRA, 2007. ³ Cancer Facts & Figures 2008. American Cancer Society, 2008.

4. Our life insurance has “living benefits” – benefits your clients do not have to die to use! If your clients experience a terminal, chronic or critical illness, they can access their death benefit while living — even if they experience a heart attack, cancer, stroke, ALS, major organ transplant, the inability to perform 2 out of 6 activities of daily living (toileting, transferring, bathing, eating, etc.) and many other ailments. For Training Purposes Only- Agent Use only Most life insurance policies just pay out at death - However, that is not how our plans work.

5. Unanticipated events can create a gap in health care coverage, causing your clients to pay more expenses out-of-pocket. How can you help offset these expenses? Consider supplementing current medical coverage with LIVING BENEFITS. Major medical issues – such as cancer, heart attack, stroke, and disabilities may be a part of life. These unexpected events occur more often than we expect and can be very costly. Surprisingly, a large percentage of these costs may not be covered by major medical insurance plans. For Training Purposes Only- Agent Use only HIGH DEDUCTIBLES CO-PAYS LOSS OF INCOME

6. IDEAL FOR HEALTH AGENTS: For Training Purposes Only- Agent Use only The Alliance products give reason to revisit with clients who may need additional coverage, gap coverage, or help with high deductibles or co-pays. Additionally, clients who were previously declined due to pre-existing conditions or for their health histories may have some success with living benefits.

7. Why Living Benefits make sense as additional health coverage in the event of a terminal, chronic, or critical illness? Ability to use the money as you see fit – whether exploratory or alternative medicine, or simply to cover bills while out of work. If you don’t use it before you die, a death benefit will be paid to the beneficiary More consumers can afford the hybrid approach rather than additional health coverage For Training Purposes Only- Agent Use only

8. Death Insurance or Life Insurance for Life? Most life policies should be called “death” insurance. With the policies we offer clients through WRL, we can help protect families through life’s unpredictable changes – we call it Life Insurance for Life! DEATH BENEFIT TERMINAL ILLNESS CRITICAL ILLNESS CHRONIC ILLNESS Living Benefits += One Solution For Training Purposes Only- Agent Use only

9. Income Vs Expenses Your Family’s Income Your Family’s Expenses Time off Work Co-Pays Deductibles Recovery Time Additional Income From Living Benefits!!! DEBT

10. For Training Purposes Only- Agent Use only

11. Terminal Illness Accelerated Death Benefit Rider Terminal illness is determined by a condition resulting from injury or illness which, as determined by a physician, has reduced life expectancy to not more than 12 months (no more than 24 months in TX, GA, IL, MA, and WA). This allows the insured to accelerate up to 100% (max of $500,000) of the policy’s death benefit in the event of a terminal illness For Training Purposes Only- Agent Use only

12. Chronic Illness Accelerated Death Benefit Rider Chronically ill is being unable to perform 2 of 6 activities of daily living without assistance from another person or being cognitively impaired. 90 day waiting period Ability to accelerate up to 2% of death benefit per month Max lifetime benefit is 90% or $500,000 - whichever is less The policy must be inforce for 2 years before benefits are available For Training Purposes Only- Agent Use only Bathing Dressing Toileting Eating Continence Transferring

13. Critical Illness Accelerated Death Benefit Rider Allows the insured to accelerate his/her death benefit if they are critically ill Critical Illness includes diagnosis of cancer, heart attack, stroke, ALS, kidney failure, and major organ transplant Max lifetime benefit is 90% or $500,000 whichever is less Policy MUST be in force for 30 days prior to claim Benefit is paid out in a lump sum and the amount of money you will be able to receive is dependant on the severity of the critical illness. For Training Purposes Only- Agent Use only

14. EXAMPLE 40 Year Old Man Non-Smoker, Standard Plus Face Amount: $500,000 Term: 30 Years For Training Purposes Only- Agent Use only

15. Why is the ABR critical illness rider a valuable benefit to the client? Experimental treatments, alternative medicine, and international medical care may be not be covered under your clients’ health insurance, but could qualify as life threatening illnesses under the ABR critical illness rider. Consider the following example as a possible application for the ABR critical illness rider:

16. For Training Purposes Only- Agent Use only Prescription medication must be approved by the FDA before it becomes available to U.S. consumers. Typically, the FDA drug review process may take 12 – 30 months. 1 If the medication is not approved by the FDA, generally, it will not be covered by health insurance. According to a Tufts University study, only 8% of experimental cancer drugs ultimately receive FDA approval. 2 However, while these potential breakthrough medications may not be approved in the U.S., they may be available in other countries. For example, Antigenics, a biotech company, has created a vaccine, Oncophage ®, which is designed to stimulate the immune system for patients battling kidney disease. Under their clinical trials, Oncophage ® increased the time before the cancer returned by almost two years. 3 The FDA has yet to approve the medication. However, it has been approved by the Russian Ministry of Public Health and is available for patients in Russia. In the above example, should your client wish to treat their kidney cancer in Russia, policy benefits could be accelerated under the ABR critical illness rider to cover those medical expenses.

17. Actual Claim Example You don’t get into the life insurance business until the life insurance business gets into you! For Training Purposes Only- Agent Use only

18. CLAIM EXAMPLE Critical Illness Claim 500,000 Face Amount Received Lump Sum of $209,646 (90% Accelerated) Still has $50,000 In Force For Training Purposes Only- Agent Use only

19. THANKS FOR YOUR PARTICIPATION! Any Questions??? For Training Purposes Only- Agent Use only 888-969-9233 Peter Goldfine or Lee Duncan lduncan@anallianceforlife.com pgoldfine@anallianceforlife.com www.anallianceforlife.com