Employer/Employee Choice. Five Employer Plan Options. Critical Illness 1.0 T390 Basic Product Training. Created July

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1 Colonial Life s Specified Critical Illness insurance isn t about what if you die, it s about what if you live! This training is not state-specific. Refer to the Product Reference Pamphlet (PRP) and your state s policy for detailed information. The Online Mastery Test is based upon this training. All licensed Colonial Life benefit counselors must successfully pass this test before ordering marketing materials. Employees need this coverage because it pays a lump sum benefit when a critical illness occurs which means they will have the money they need while recovering so they can focus on getting well and not paying for the bills. The information contained in this presentation is intended for the training and education of Colonial Life & Accident Insurance Company employees and benefit counselors only. Colonial Life has not authorized any other use of this information. Do not give or show it to prospective insureds, employers of prospective insureds, or anyone else not employed by or contracted with Colonial Life & Accident Insurance Company or other Unum business units. This presentation contains highlights of the actual product benefits. Please see the policy for your state for complete details. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 1 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 2 Five Employer Plan Options Critical Illness Critical Illness + Health Screening Critical Illness + Subsequent Diagnosis Critical Illness + Health Screening + Subsequent Diagnosis Critical Illness + Health Screening + Subsequent Diagnosis (HSA Compliant) Employer/Employee Choice Employer Chooses: Plan Design (one plan design per account) HSA v. non HSA option Health Screening Subsequent Diagnosis Employee Chooses: Face amount Cancer option *All Plans offer an Employee Cancer Option Critical Illness 1.0 (state variations apply) Created July 2009, Slide 3 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 4 Created July

2 Family Coverage Options and Face Amounts Benefits Employee (Named Insured) $5,000 $100,000 maximum (over $75,000 requires underwriting approval and is not available with family coverage) Heart Attack (Myocardial Infarction) Permanent Paralysis (due to covered accident) Spouse (Named Insured) and Spouse (One Parent Family) Employee/Spouse and Two Parent Family Employee (One Parent Family) Spouse: $5,000 $40,000 maximum Dependent: 25% of spouse s face amount Employee: $75,000 maximum Spouse: 50% of employee s face amount Dependent: 25% of employee s face amount Employee: $75,000 maximum Dependent: 25% of employee s face amount Stroke End Stage Renal (Kidney) Failure Cancer (optional) Coronary Artery Bypass Graft Surgery (only non HSA plans) Carcinoma in Situ (cancer option) Major Organ Failure Coma Blindness Occupational Infectious HIV/Hepatitis B, C, or D Coronary Artery Disease (HSA option only) $50 Cancer Vaccine Benefit (with Cancer Option) Critical Illness 1.0 (state variations apply) Created July 2009, Slide 5 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 6 Benefit Amounts Paid Heart Attack (Myocardial Infarction) Stroke End Stage Renal (Kidney) Failure Cancer (Option) Coronary Artery Bypass Graft Surgery (not available with non HSA plans) 100% of the Face Amount 25% of the Face Amount Major Organ Failure Permanent Paralysis (due to covered accident) Coma Blindness Occupational Infectious HIV/Hepatitis B, C, or D Coronary Artery Disease (HSA option) Carcinoma in situ (cancer option) Benefit Amounts Paid $50 Health Screening Benefit Once per year per covered person $50 Cancer Vaccine Benefit (Cancer option) Once per covered person per lifetime Critical Illness 1.0 (state variations apply) Created July 2009, Slide 7 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 8 Created July

3 Plans with Subsequent Diagnosis Pay More than Once! Dates of Diagnoses must be separated by at least 180 days (for each covered person s diagnoses) Diagnosed with DIFFERENT condition Receives additional 100% of the face amount (or 25% for Coronary Artery Bypass Graft Surgery, Coronary Artery Disease, or Carcinoma in Situ) Diagnosed (again) with SAME condition Receives additional 25% of the face amount. (Does not apply to Cancer, Carcinoma in Situ, Coronary Artery Bypass Graft Surgery, Coronary Artery Disease, or Occupational Infectious HIV/Hepatitis B, C, or D) Plans with Subsequent Diagnosis pay three times (3x) face amount for the named insured for all covered persons combined. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 9 How Does Subsequent Diagnosis Work? EMPLOYEE ONLY EXAMPLE: Employee policy (Employee Only Coverage) $25,000 face amount On October 1, 2009, Jim has a heart attack. He receives a $25,000 benefit. SAME Condition (Pays 25%) On May 1, 2010, Jim has another heart attack. He receives a second benefit of $6,250. Total paid $31,250 $43,750 left before maximum benefit amount ($75,000 or 3X face amount) is reached Note the Dates of Diagnoses for the insured they must be separated by at least 180 days (for each covered person s diagnoses) $25,000 face amount On October 1, 2009, Jim has a heart attack. He receives a $25,000 benefit. DIFFERENT Condition (Pays 100%) On May 1, 2010, Jim has a stroke. He receives a second benefit of $25,000. Total paid $50,000 $25,000 left before maximum benefit amount ($75,000 or 3X face amount) is reached Critical Illness 1.0 (state variations apply) Created July 2009, Slide 10 How Does Subsequent Diagnosis Work? FAMILY COVERAGE EXAMPLE: Employee policy with Family Coverage $25,000 face amount On October 1, 2009, Jim s spouse has a heart attack. She receives a $12,500 benefit. SAME Condition (Pays 25%) On May 1, 2010, Jim s spouse has another heart attack. She receives a second benefit of $3,125. Total paid: $15,625 $59,375 left before Maximum Benefit Amount ($75,000 or 3X face amount) is reached Note the Dates of Diagnoses for the covered family they must be separated by at least 180 days (for each covered person s diagnoses) DIFFERENT Condition (Pays 100%) On May 1, 2010, Jim s spouse has a stroke. She receives a second benefit of $12,500. On July 1, 2010, Jim s dependent child, Mary, is diagnosed with en stage renal (kidney) failure. She receives a $6,250 benefit. Total paid: $31,250 $43,750 left before Maximum Benefit Amount ($75,000 or 3X face amount) is reached Maximum Benefit Amount With Subsequent Diagnosis 3x face amount for named insured for all covered persons combined Without Subsequent Diagnosis 100% of face amount for each covered person Policy terminates when the Maximum Benefit Amount has been paid Note: Health Screening and Cancer Vaccine Benefits do not reduce the Maximum Benefit Amount. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 11 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 12 Created July

4 Account Eligibility Minimum 3 eligible employees Payroll deduction Individual pay group (IPG) accounts No Individual sales outside of employer setting Individual Eligibility Employee Issue ages (in most states) Actively at work at time of application, working at least 20 hours per week Spouse Spouse of an employee Issue ages (in most states) Dependents (varies by state) Unmarried; chiefly dependent on you or your spouse for support and younger than age 26 Newborns must notify home office within 31 days to cover Critical Illness 1.0 (state variations apply) Created July 2009, Slide 13 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 14 Rates Tobacco/Non Tobacco Five year age bands Spouse and dependent premiums based on age of the employee Sample Monthly Premiums Critical Illness with Health Screening Non Tobacco Rate ($0.75 per $1,000 unit) Applicant issue age 40 $25,000 face amount Units of coverage 25 Unit premium x $.75 Total $ Health Screening rate $ 2.15 Monthly Premium $ Pre Existing Conditions 12/12 in most states (may vary by state) Means having a sickness or physical condition for which any covered person was treated, had medical testing, received medical advice or had taken medication within 12 months before the Coverage Effective Date of the policy. A benefit will not be paid for a pre existing condition that occurs during the 12 month period after the Coverage Effective Date. Some states have a 30 day waiting period in lieu of pre existing. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 15 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 16 Created July

5 Underwriting AccHlth application Choice of one underwriting option per account Simplified Underwriting Post Enrollment Guaranteed Issue (PEGI) Reworking Accounts Transfers allowed from CI (98) and CI (2001) Pre existing applied to new policy During pre ex period of new policy, benefits paid under previous policy Credit for time insured not allowed Stacking is not allowed Cannot have a CI 1.0 policy and another Colonial Life individual or group Critical Illness policy. Cannot purchase CI 1.0 with the Cancer Option in addition to any Colonial Life Cancer policy Exception: a covered person may have Colonial Health Advantage with the optional embedded Critical Illness benefit and a CI 1.0 policy Critical Illness 1.0 (state variations apply) Created July 2009, Slide 17 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 18 A Different Message For most of our insurance plans, Colonial Life s marketing message is, We can help insureds maintain their current lifestyle. Our Specified Critical Illness Insurance message is different We can help the insureds who survive. Some critical illness survivors may never be able to return to their old lifestyle, go back to the same job or return to work at all. Instead, they ll face a new way of life focused on recovery, rehabilitation and recuperation. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 19 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 20 Created July

6 Avoid a Market Conduct Issue Document and disclose before you close! Avoid point of claim disputes by clearly explaining what s covered! Avoid a Market Conduct Issue Document and disclose before you close! Highlight and/or circle definitions, exclusions and limitations! Provide exact definitions of the covered Specified Critical Illnesses. Refer to your state s brochure and outline of coverage. Before closing, ensure that your customer knows what triggers a benefit to be paid Study your PRP, Policy, Brochure and Outline of Coverage! They contain the detailed info you need to correctly position and enroll this product. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 21 Critical Illness 1.0 (state variations apply) Created July 2009, Slide All five Critical Illness 1.0 plan options offer: a) A Subsequent Diagnosis Benefit b) A Health Screening Benefit c) An employee Cancer option d) Subsequent Diagnosis and Health Screening Benefits 1. All five Critical Illness 1.0 plan options offer: a) A Subsequent Diagnosis Benefit b) A Health Screening Benefit c) An employee Cancer option d) Subsequent Diagnosis and Health Screening Benefits Critical Illness 1.0 (state variations apply) Created July 2009, Slide 23 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 24 Created July

7 2. All In general, the chooses the plan design, while the chooses the face amount and whether or not to include the cancer option. a) Broker; employer b) Employer; spouse c) Employer; broker d) Employer; employee 2. All In general, the chooses the plan design, while the chooses the face amount and whether or not to include the cancer option. a) Broker; employer b) Employer; spouse c) Employer; broker d) Employer; employee Critical Illness 1.0 (state variations apply) Created July 2009, Slide 25 Critical Illness 1.0 (state variations apply) Created July 2009, Slide How many plan options are allowed per account? a) All five plan options may be offered in an account b) Any two plan options may be combined and offered in an account. c) The number of plan options allowed varies depending on the size of the account d) Only one plan option is allowed in an account 3. How many plan options are allowed per account? a) All five plan options may be offered in an account b) Any two plan options may be combined and offered in an account. c) The number of plan options allowed varies depending on the size of the account d) Only one plan option is allowed in an account Critical Illness 1.0 (state variations apply) Created July 2009, Slide 27 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 28 Created July

8 4. Plans with a Subsequent Diagnosis Benefit require dates of diagnoses to be separated by at least days before benefits are payable, in most states. a) 30 b) 180 c) 60 d) Plans with a Subsequent Diagnosis Benefit require dates of diagnoses to be separated by at least days before benefits are payable, in most states. a) 30 b) 180 c) 60 d) 90 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 29 Critical Illness 1.0 (state variations apply) Created July 2009, Slide The Maximum Benefit Amount allowed for this policy without the Subsequent Diagnosis Benefit is 100 percent of the face amount for each covered person. With Subsequent Diagnosis, the Maximum Benefit Amount is: a) Double the face amount for named insured for all covered persons combined. b) Three times face amount for named insured for all covered persons combined. c) Five times face amount for named insured for all covered persons combined. d) Fifty percent of the face amount for all covered persons combined. 5. The Maximum Benefit Amount allowed for this policy without the Subsequent Diagnosis Benefit is 100 percent of the face amount for each covered person. With Subsequent Diagnosis, the Maximum Benefit Amount is: a) Double the face amount for named insured for all covered persons combined. b) Three times face amount for named insured for all covered persons combined. c) Five times face amount for named insured for all covered persons combined. d) Fifty percent of the face amount for all covered persons combined. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 31 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 32 Created July

9 6. Which of the following underwriting options does not apply to this product? a) Guaranteed issue with pre existing waived (GX) b) Post enrollment guaranteed issue (PEGI) c) Simplified issue level one (SI1) d) Simplified issue (SI) 6. Which of the following underwriting options does not apply to this product? a) Guaranteed issue with pre existing waived (GX) b) Post enrollment guaranteed issue (PEGI) c) Simplified issue level one (SI1) d) Simplified issue (SI) Critical Illness 1.0 (state variations apply) Created July 2009, Slide 33 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 34 Advance the slide to continue! 6. This product pays 100 percent of the face amount for Heart Attack (myocardial infarction), Stroke, End Stage Renal (Kidney) Failure, Cancer (optional) and the following benefits: a) Coronary Artery Bypass Surgery b) Carcinoma in Situ c) Coma, Blindness, Permanent Paralysis (accident) and Occupational HIV/Hepatitis d) Coma only. 6. This product pays 100 percent of the face amount for Heart Attack (myocardial infarction), Stroke, End Stage Renal (Kidney) Failure, Cancer (optional) and the following benefits: a) Coronary Artery Bypass Surgery b) Carcinoma in Situ c) Coma, Blindness, Permanent Paralysis (accident) and Occupational HIV/Hepatitis d) Coma only. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 35 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 36 Created July

10 Advertising About 1.2 million Americans had a first or recurrent coronary attack last year. Know the Facts, Get the Stats 2008, American Heart Association/American Stroke Association While sharing statistics like this may help communicate a product s value to your customer, there may be specific information that you are required by law to disclose during your sales : presentation. Non compliance can result in market conduct issues, penalties and severe consequences. Log on to Colonial Life s ProducerNet web site and visit Colonial College, Product and Online Ordering to access the approved training and marketing information you need to correctly position this product. For more information, refer to Colonial Market Conduct, Privacy and Security Training. Distribute only written materials that have been approved by Colonial Life s home office. According to your contract with Colonial Life, any other advertising requires written approval from the home office prior to use. This requirement applies to any written document you prepare, no matter how brief, that describes Colonial Life s business or products. Product Training Support (Internal Use Only) Product Web Site Overviews, Product Development Catalog, bulletins, availability and competitive information Underwriting overview, guidelines, and bulletins Colonial College Training Web Site Self paced tutorials, courseware and web based training available 24 hours a day, 7 days a week. Download our Colonial College Catalog to view our current offerings. Product Reference Pamphlets (PRPs) and Sales Tips Fliers Instructor led Classrooms Self paced and Online Courses National Training Schools Continuing Education (CE) Credit Courses National Training Calls and Forums Sales Motivation Books and Other Media Critical Illness 1.0 (state variations apply) Created July 2009, Slide 37 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 38 Customer Marketing Materials Online Ordering Web Site (or Field Supplies, ext 5000) All Colonial Life benefit counselors and sales managers are required to pass the mastery test before ordering these materials. Regular version is shown. Many form numbers may vary by state. Employee Marketing Materials Employee Pre approach Stuffer form Employee Pre approach Flier (Product Needs Flier for Critical Illness) form Pre tax Disclosure Form form Taxability of Benefits Flier form Service Guide for Colonial Life Insureds form The Guide to Health Insurance for People with Medicare form Important Notice to Persons on Medicare form Field Underwriting Guide form Employer Marketing Materials Employer Topic Sheet form Voluntary Products Portfolio Brochure form Proposals and Rates See ProducerNet topic for state specific proposals Support Materials Other Producer Support Critical Illness 1.0 Individual Rate Sheets form Critical Illness 1.0 Sales Tips Flier form New Account Manual form 8690 ( 37 version or higher) Critical Illness Claim Form form Wellness Claim Form (Health Screening Benefit or Cancer Vaccine Benefit claims only) form Sample Policy (Order from the Producer Support Line ( ); press 2 for Customer Service; then Account Services. Provide producer name, producer number, state and a plan code. Do not give sample to applicants.) Enrollment Sales Support Brochure/Outline of Coverage Other Point of Sale (POS) Forms ADDITIONAL ENROLLMENT SUPPORT PRODUCT AND UNDERWRITING Product Reference Pamphlet (PRP) Field Underwriting Guide Underwriting Contact Information (Home Office) REQUIRED AT POINT OF SALE (POS) State specific product information including exclusions and limitations. Form numbers vary by state. Order from Field Supplies, and provide to the customer at point of sale. The Field Underwriting Guide (Form #59342) lists all required POS forms. If you re using an electronic enrollment method, required information and state compliant forms will be seamlessly integrated into your automated sales process. Comprehensive product and sales related information, as well as eligibility, app, underwriting level and issue information. Form numbers vary by product. Order from Field Supplies or download from the ProducerNet s Colonial College web site or Online Ordering System. Underwriting terms, policy service guidelines, enrollment forms, statecompliant questions, app form numbers, height and weight charts, medical conditions, transfers and replacements, and HIV Consent Form numbers. Form # Order from Field Supplies VOICE, Ext 6210, and select: Option I: Accident, Cancer, Individual Disability, Hospital Confinement, Intensive Care and Whole Life Option 2: Critical Illness, Individual Term Life, Universal Life Critical Illness 1.0 (state variations apply) Created July 2009, Slide 39 Critical Illness 1.0 (state variations apply) Created July 2009, Slide 40 Created July

11 Congratulations! You ve completed Critical Illness 1.0! You Must Pass a Product s Training Mastery Test Before You Can Order the Product s Marketing Materials. Click to take the mastery test Click to view print ready handout Close the browser to exit You will not be able to view or order a product s marketing materials from the ProducerNet Online Ordering System unless you have passed the corresponding Colonial Life College online product mastery test. Because the online ordering system is integrated with our the online testing system, when you pass an online product mastery test, the online ordering system will reflect that immediately. Critical Illness 1.0 (state variations apply) Created July 2009, Slide 41 Created July