2. PLEASE STAND BY OUR MEETING WILL BEGIN SHORTLY American Fidelity Life Presents A Recession Resistant Market Telephone Audio Dial 773/945 011 Access Code: 563 556 146

4. American Fidelity A Recession Resistant Market Hosted By: Gerard Capra National Sales Director gerard.capra@af-group.com

5. The Federal Market Marketplace 2.7 Million Employees More than 80% located outside of Washington, D.C. Over 3 Million Additional Spouse/Dependents Over 2.5 Million Retired With New Administration, Job Numbers are on the Rise Expected growth 5 -10%

6. The Federal Market Marketplace GAO estimates 50% of Federal Employees will retire within 5 -10 year Up to 125,000 per year Need for 125,000 to 200,000 new employee per year over next 10 years Need to replace expensive FEGLI plans

7. The Federal Market Marketplace Financially Pre-qualified Average Medium Income $61,500 Stable Employment Excellent Medical Coverage - Above average health High Persistency Few Competitors

8. The Federal Market Sales Opportunities Alternative to: FEGLI Non-Basic Benefits Alternative/Supplement Pension – Survivor Annuity Benefit Alternative/Supplement - Current Options available to Employees through Government Inflexible and Expensive

9. The Focus of Today’s Webinar will be FEGLI Non-Basic Replacement/Supplement Opportunity

10. Background Info… Federal Employee Group Life Insurance (FEGLI) Established in 1954 Largest Group Life Insurance Program Over 4 Million Participants $571 Billion Life in Force $3.5 Billion in Annual Premiums

11. Background info… FEGLI: How it works… Basic Coverage 1-2x Annual Salary + $2,000 Option A $10,000 if age 45 or over Option B 1 – 5X Annual Salary Option C Spouse Max $25,000 Dependent Child $12,500

12. Background Info… FEGLI Inflexible Employee, Spouse & Dependent Limits Coverage Period Limitations

13. Background Info… FEGLI Expensive Group Coverage Rates Price Increases every 5 years Coverage Could Decline at Retirement

14. Background Info… FEGLI Sample Rate Option B Female Age 55 $200,000 Age Premium Age Premium 55-59 $56.00 70-74 $246.00 60-64 120.00 75-79 366.00 65-69 144.00 80 + 480.00 Premiums per pay period!!

15. Background Info… FEGLI For those employees who elect not to pay the higher premiums, they may have Death Benefits decrease at retirement by 2% per month for 50 months

16. The Opportunity How to Market in the Federal Employee Market

17. Meeting Federal Employees… Seminars Evening Seminars Lunch and Learn Events Existing Clients Asking for Referrals Blitzing Campaigns

18. The Sales process… Usually on Job Site or In Home FEGLI Explanation: Most Do Not Understand the Pitfalls Offer Alternative and a Way to Save Money During Their Career Closing the Sale Setting Up Payment Via Allotment

19. How American Fidelity is giving you the tools to have success in this Market A+ Rating…Now More Than Ever!! Federal Allotment Capability Flexible, Easy to Understand Products Competitive Pricing Training to Begin in this Market and Succeed

20. Federal Allotment Capability… Alliance with Professional Benefits Administrators (PBA) PBA: 20 + Years Experience in the Federal Market Turn Key Administration to Help You be Successful

21. A to Z Training that… Open Doors at Government Facilities Leverage Union and Association Endorsements Generate Leads Get Calls Within 24 Hours The Sales Process Obtaining Referrals Add Credibility with Each Site Visit Proper Market Conduct Becoming the Onsite Life Insurance Specialist FEGLI Calculator

22. American Fidelity Product Portfolio Alternative 95 AF Easy Term Sentinel

23. How FEGLI Sales Work… A Sample Case

24. Sample Case Marge (age 55) is a Postal Federal Employee (California) Current Income $40,000 ($3,333 per month) Standard Risk Retirement Goal is age 65 Married to George age 58 Current FEGLI plan: $52,000 Basic & Option A $200,000 Option B Current premium: $58.70 per pay period At age 60, this will increase to $128.70 per pay period. She now has two options: 1. Continue paying the premiums and have her coverage begin decreasing 2% per month for 50 months, at which time coverage will have decreased to $12,500 and premiums would then remain level at $13.00 per month.

25. Sample Case 2. Maintain full (Option B) coverage at the following cost: Age 55-59 $ 56.00 per pay period Age 60-64 $120.00 Age 65-69 $144.00 Age 70-74 $240.00 Age 75-79 $360.00 Age 80+ $480.00 AF Easy Term 30 year plan $80.58 per pay period Alternative 95 $79.00 per pay period

26. Sample Case COST ANALYSIS FEGLI EASY TERM ALTERNATIVE 95 End Year 5 7,280 10,473 10,270 10 22,880 20,946 20,540 15 41,600 31,418 30,810 20 72,800 41,891 41,080 25 119,600 52,364 57,350 30 182,000 62,837 61,620 35 224,400n/a 71,890 40 286,800 n/a 82,160

27. Sample Case Keep FEGLI Basic $42,000 decrease to $10,500 over 38 months Purchase $100,000 Easy Term (California) $34.02 Purchase $3,333 of monthly Income benefits Sentinel 67 $26.92 ---------- Total Premium per pay period $60.94 Current FEGLI $58.70 Coverage premiums increases at retirement or Coverage decreases over 50 months to $12,500 S-2033 For Agent Use Only. Not for Consumer Distribution.

28. Retirement Option Marge retires at age 65 (spouse 68) 30 yrs service ($46,000 salary) Basic Formulae $2,156 per month Survivor annuity benefit $1,963 per month Survivor benefit $1,185 per month Cost to Marge $193 per month _____________________________________ Sentinel Permanent: Benefit: $1,185 Standard Preferred S-Preferred Base Cost: 101.72 77.55 66.41 COLA: 116.62 88.60 75.76 COLA & PPR 276.35 202.16 170.22 Premium Refund ( over 120 months) Death Age 78 $33,162 $24,259 $20,426

29. Getting Started What’s Your Next Move?

30. Getting Started Field Relations Managers Kellee Sloan Patricia Bowersox kellee.sloan@af-group.com patricia.bowersox@af-group.comkellee.sloan@af-group.compatricia.bowersox@af-group.com Contact Your Field Relations Manager: 866-416-8880, ext.2845

31. Future Webinars will Include; –Survivor Benefit Alternative/Supplement Questions? THANK YOU.