CI and the disability client

DI: Why not 100% replacement?

• More CLAIMS• LONGER claims• Human nature of OTHER people

Policy Form Nos. I H0920, I H0820, I L0760.Product and rider availability, features and rates may vary by state.H703-0413

Group/individual disability income —usually a deal killer

• Is a critical illness insurance sale• “My clients” versus people for whom

ratio required– Unfair, wrong, deserve – Minimum standard for legit people

with real claims• “I have always been frustrated that good,

honest people...”

Disability income

• The perfect disability claim– Designed to hurt

– i.e., $4,000/month after 91 days – No paycheck for 4 months ($16,000)– Short $1,000/month for one year

($12,000)– FIRST $28,000 of CI only ensures NO

PAYCUT to household dealing with cancer (no hotels, no prescriptions, no co-pays, etc.)

Disability client

“It might just be me, but I see a difference between…”

• Sore back and cancer• Broken leg and stroke

Critical illness and DI: the perfect match

• Think of disability insurance as the brakes on your car…

• Think of critical illness insurance as the airbagsAnd DI writers love this:If I had to choose between the two cars, I would choose one with brakes…But most cars have both brakes and airbags now!

CI and the quality accountant

Question: How good is your accountant?

The “better” a client feels their accountant is…the more likely they are short on their disability insurance and need some critical illness.

DI and CI for blue collar

• Century+ Disability Income - $3,000(Male, age 40, non-tobacco, 90-day EP, To-Age-65)– Your category (2A): $125/month– Lawyer, Accountant (4A): $67/month

• Critical Illness - $100,000 – You: $83/month– Lawyer, Accountant: $83/month

CI sales ideas

Some people can’t

purchase DI protection

because of their

occupation...

• Homemakers

• Home-based business owners

• Professional athletes

• Packing industry workers

• Offshore oil and gas workers

• Writers/authors

• Actors

• Pilots

• Flight attendants

• Air traffic controllers

And some occupations

don’t allow your clients

to purchase enough DI...

• Independent contractors or

consultants

• Self-employed individuals

• Teachers

• Government employees

• Commissioned salespeople

GenRe/NACII survey

• Carriers developing CI because of agent demand

• No. 1 obstacle to sales is agent acceptance

Century+ DI(Broker level)

Average Premium/Policy 1,000$ Policies per Year 12 Total Annual Premium 12,000$

Policy Duration 1 2 3 4 5 6 7 8 9 10Lapse Rate 11% 10% 10% 9% 9% 8% 7% 8% 7% 7% Total

Commission 60% 5% 2% 2% 2% 2% 2% 2% 2% 2% CommissionYear 1 6,804.00 - - - - - - - - - 6,804.00

2 6,804.00 507.30 - - - - - - - - 7,311.30 3 6,804.00 507.30 183.11 - - - - - - - 7,494.41 4 6,804.00 507.30 183.11 166.06 - - - - - - 7,660.47 5 6,804.00 507.30 183.11 166.06 151.27 - - - - - 7,811.74 6 6,804.00 507.30 183.11 166.06 151.27 138.97 - - - - 7,950.71 7 6,804.00 507.30 183.11 166.06 151.27 138.97 128.68 - - - 8,079.39 8 6,804.00 507.30 183.11 166.06 151.27 138.97 128.68 119.17 - - 8,198.56 9 6,804.00 507.30 183.11 166.06 151.27 138.97 128.68 119.17 110.29 - 8,308.84

10 6,804.00 507.30 183.11 166.06 151.27 138.97 128.68 119.17 110.29 102.34 8,411.18 10 Year Total Cumulative Commissions 78,030.59

NonMed Term 350 – 20-yr term(Broker level)

Average Premium/Policy 750$ Policies per Year 12 Total Annual Premium 9,000$

Policy Duration 1 2 3 4 5 6 7 8 9 10Lapse Rate 14% 12% 10% 8% 6% 6% 6% 6% 6% 5% Total

Commission 95% 2% 2% 2% 2% 2% 2% 2% 2% 2% CommissionYear 1 7,951.50 - - - - - - - - - 7,951.50

2 7,951.50 145.51 - - - - - - - - 8,097.01 3 7,951.50 145.51 129.41 - - - - - - - 8,226.42 4 7,951.50 145.51 129.41 117.70 - - - - - - 8,344.12 5 7,951.50 145.51 129.41 117.70 109.41 - - - - - 8,453.53 6 7,951.50 145.51 129.41 117.70 109.41 102.85 - - - - 8,556.38 7 7,951.50 145.51 129.41 117.70 109.41 102.85 96.67 - - - 8,653.05 8 7,951.50 145.51 129.41 117.70 109.41 102.85 96.67 90.87 - - 8,743.93 9 7,951.50 145.51 129.41 117.70 109.41 102.85 96.67 90.87 85.42 - 8,829.35

10 7,951.50 145.51 129.41 117.70 109.41 102.85 96.67 90.87 85.42 80.71 8,910.06 10 Year Total Cumulative Commissions 84,765.35

Century+ DI breakdown

Male 71%Female 29%

Tobacco 10%Non-tobacco 90%

Standard 94%Substandard 6%

Century+ DI breakdown

Occupational Classes

1A: 11%2A: 25%3A: 30%4A: 34%

Age

19-29: 18%30-39: 37%40-49: 27%50-60: 17%

Century+ DI breakdown

Elimination Period

30 day: 5%60 day: 6%90 day: 71%180 day: 17%365 day: 1%

Benefit Period

1 year: 3%2 year: 16%5 year: 35%10 year: 8%Age 65: 33%Age 67: 4%

Century+ DI breakdown

Riders ClassesAll 1A+2A 3A+4A

Supplemental DI (SSDI Offset)84% 83% 85%Residual 30% 24% 33%Automatic Increase (COLA) 26% 24% 27%Own Occupation 22% n/a 34%Retro Injury 20% 25% 18%Guaranteed Insurability 15% 16% 14%CAT 8% 15% 4%Return of Premium 4% 6% 3%Non-Can 1% n/a 2%

Questions?

Policy Form Nos. I H0920, I H0820, I L0760.Product and rider availability, features and rates may vary by state.H703-0413

The policies and riders in this presentation may contain reductions of benefits, limitations and exclusions. For complete details of coverage, please contact Assurity Life Insurance Company or ask to review the policy for more information.