An Educational Guide for Individuals. Radius Choice SM. MassMutual s Premier Individual Disability Income Insurance Protection. Insurance Strategies

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1 An Educatinal Guide fr Individuals Radius Chice SM MassMutual s Premier Individual Disability Incme Insurance Prtectin Insurance Strategies

2 HELP MAKE YOUR FINANCIAL FUTURE MORE SECURE Radius Chice is disability incme (DI) insurance frm Massachusetts Mutual Life Insurance Cmpany (MassMutual) that can help yu prtect yur mst imprtant asset yur incme. When yu purchase an individual DI plicy frm MassMutual, yu have ptins t custmize yur cverage t meet yur specific needs.

3 Radius Chice ffers the features yu lk fr in excellent disability incme insurance prtectin frm an industry leader YOU RELY ON YOUR PAYCHECK Almst everyne des. In fact, yur ability t earn an incme is yur mst imprtant asset. Why? Every expense requires an incme t pay fr it. Yur mrtgage payments, yur car payments, educatin expenses, living expenses, utilities everything yu wrk hard fr every day. Radius Chice is ur premier disability incme insurance fr prfessinals, business wners and crprate executives. It prvides a mnthly benefit t replace a prtin f yur incme if yu becme t sick r hurt t wrk. Radius Chice is flexible and prvides yu with ptins t tailr cverage fr yur specific needs, s yu can cntrl premium expenses withut sacrificing benefits. UNDERSTANDING YOUR POTENTIAL INCOME LOSS Many peple dn t realize the risk f becming disabled as the result f an illness r injury at sme pint in their lives r hw it can affect their ability t wrk, t earn an incme and t prvide fr themselves, their families r their business. Yur incme fuels the engine that drives yu int the future. Incme Lss Financial lss ptential frm a permanent disability $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Age When Disability Begins Assume disability lasts t a retirement age f 65. Annual pre-disability incme $25,000 $50,000 $100,000 age 35 age 45 age 55 Withut it, yur ability t fund the future yu envisined is in jepardy. This chart demnstrates the ptential financial lss f future earnings if a persn were t becme permanently disabled. Fr example, a 35-year ld with an annual salary f $50,000 wh experiences a permanent disability may lse up t $1,500,000 in ptential earnings by age 65. 1

4 Prduct Highlights NON-CANCELLABLE COVERAGE TO AGE 65 Yur plicy cannt be canceled as lng as premiums are paid n time and yur rates cannt be changed (cverage increases will increase premiums). Als, if yu cntinue t wrk full time beynd age 65 and are nt disabled, yur plicy becmes cnditinally renewable until age 75, prvided certain cnditins are met. TOTAL DISABILITY COVERAGE Yu are eligible fr benefits if yu becme unable t perfrm the main duties f yur Occupatin due t Sickness r Injury, are nt wrking in any ther Occupatin and are under a Dctr s Care. 1 GRADED PREMIUM An ptinal premium structure is available t issue ages 18 35, under which the initial premiums are less than a level premium structure fr the early years f the plicy. These premiums gradually increase each year until they becme level at age 50 fr the duratin f the plicy. Over the life f the plicy, the cumulative premiums fr the graded premium structure may be mre than if the plicy was issued with a level premium structure. Graded Premium As the hypthetical chart belw demnstrates, the graded premium payment structure in general begins at abut 40% belw the level premium ptin and increases incrementally each year, until the premium amunt becmes level at age 50 fr the duratin f the plicy. Level Premium Graded Premium Age Hypthetical graphic is fr illustrative purpses nly. Actual crss ver pints may vary. 1 Definitin f Ttal Disability may vary by state. Fr state-specific definitins, please cntact yur MassMutual representative. 2

5 MASSMUTUAL OFFERS A NUMBER OF OPTIONAL RIDERS 1 TO ASSIST YOU IN DESIGNING A DI POLICY THAT IS FLEXIBLE ENOUGH TO HELP MEET THE UNIQUE AND CHANGING NEEDS OF YOUR LIFESTYLE. Optinal riders t be cnsidered regardless f lifestyle r jb duties Rider Descriptin 2 Autmatic Benefit Increase Rider (ABI) Benefit Increase Rider (BIR) Catastrphic Disability Benefit Rider (CAT) Extended Partial Disability Benefits Rider (EPR) Future Insurability Optin Rider (FIO) Grup Supplement Disability Benefits Rider (GSR) Allws the autmatic annual purchase f benefits withut evidence f medical r financial insurability (yu cannt be disabled). Increase amunt is 3%. Allws yu t purchase additinal mnthly disability cverage nce every three years as yur incme increases s lng as yu financially qualify, are actively at wrk and are nt disabled. T keep the rider in frce, every three years yu must submit an applicatin and accept eligible cverage increases, subject t the terms f the rider. This rider prvides benefits that cver up t 100% f pre-disability earned incme when cmbined with benefits under the Radius Chice plicy. Benefits will be paid if yu suffer a Presumptive Disability, r if yu qualify under the base definitin f Ttal Disability and either cannt perfrm 2 f 6 Activities f Daily Living, r yu suffer a Severe Cgnitive Impairment. This rider prvides a benefit if yu are wrking and suffer a minimum 15% lss f incme resulting frm a reduced capacity t perfrm yur ccupatin due t sickness r injury. In additin, during the first 6 mnths f disability, yu may als qualify as Partially Disabled if due t sickness r injury, yu suffer a minimum 15% lss f time frm wrk, r can d sme but nt all f the main duties f yur ccupatin. Allws yu t purchase additinal mnthly disability cverage as yur incme increases. Yu must be actively at wrk and nt disabled. Financial underwriting is required. Prvides additinal return-t-wrk benefits t supplement the benefits yu receive frm yur grup LTD plan during a Partial Disability. 1 All riders (except ABI and BIR) are available at an additinal cst. State availability may vary. 2 Only a brief descriptin f the riders is prvided. Fr mre infrmatin, talk t yur MassMutual financial prfessinal. 3

6 Optinal riders t cnsider based n yur lifestyle and jb duties Rider/ Endrsement Cst f Living Adjustment Rider 3% (COLA) Own Occupatin Rider (OWN OCC) Descriptin If yur disability lasts lnger than 12 mnths, yur benefit may increase under the ptinal Cst f Living Adjustment Rider. Benefits may cntinue t increase fllwing every 12 mnths f eligible disability until yu return t wrk full-time. This helps benefits keep pace with inflatin. Prvides a disability benefit when yu are unable t perfrm the main duties f yur usual Occupatin due t Sickness r Injury, are under a Dctr s care, and yu chse t wrk in anther Occupatin. Optinal riders apprpriate fr specific needs Rider Descriptin Helps replace an amunt equal t bth emplyee cntributins and emplyer match cntributins that wuld RetireGuard Rider (RGR) have been made t an eligible defined cntributin plan if yu had nt becme Ttally Disabled (subject t current IRS limits). RetireGuard is nt a retirement plan, nr a substitute fr ne. 3 Shrt Term Disability Prvides disability benefits fr a shrt perid f time during the waiting perid f emplyer-pay salary Benefits Rider (STR) cntinuatin plans, r LTD plans with 180-day r lnger waiting perids. Prvides a mnthly incme benefit during perids f eligible Ttal Disability withut duplicating disability Scial Insurance Rider (SIR) benefits prvided by Scial Security, State Cash Sickness r Wrkers Cmpensatin. Benefits are nt paid fr any mnth that yu receive Scial Security retirement incme benefits. Student Lan Rider (SLR) Prvides a mnthly benefit fr reimbursement f yur student lan debt while yu are Ttally Disabled. 4 ADDING OPTIONAL FEATURES CAN PROVIDE ADDITIONAL FLEXIBILITY AND HELP MAKE YOUR FINANCIAL FUTURE MORE SECURE. WHY MASSMUTUAL? Strength MassMutual has sme f the highest financial strength ratings 5 f any cmpany, in any industry. MassMutual As a mutual insurance cmpany, MassMutual is perated fr the benefit f ur members and participating plicywners. Experience We have ver 50 years f experience in prviding disability benefits and have helped many peple in their unexpected time f need. 3 Benefits are nt paid int an emplyer-spnsred retirement plan. When insured with RetireGuard, during a perid f ttal disability, MassMutual will pay benefits int an irrevcable trust. The trust ffers different investment ptins s that a client can select the ptin that best meets his/her retirement gals. Trust assets may be tax-deferred depending n the investment ptin(s) selected. Trust services prvided by The MassMutual Trust Cmpany, fsb, a whlly-wned subsidiary f MassMutual. 4 Befre deciding whether t purchase the Student Lan Rider, yu shuld cnsider any prvisins f yur student lan(s) that may allw fr deferment, discharge r frgiveness f the debt, fr example, discharge fr ttal disability, public service lan frgiveness, teacher lan frgiveness r incme-driven repayment. 5 Financial strength ratings are as f 10/1/2016: A.M. Best A++; Fitch AA+; Mdy s Aa2; Standard & Pr s AA+. Ratings are fr MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance C. and MML Bay State Life Insurance C. (Enfield, CT 06082). Ratings are subject t change. 4

7 Rider selectin wrksheet This wrksheet can assist yu in custmizing yur MassMutual disability incme insurance plicy. Use the area belw t identify apprpriate riders and persnal needs that they can help address. Selectin Rider Name Reasns fr Selectin Autmatic Benefit Increase Rider (ABI) Benefit Increase Rider (BIR) Catastrphic Disability Benefit Rider (CAT) Extended Partial Disability Benefits Rider (EPR) Future Insurability Optin Rider (FIO) Grup Supplement Disability Benefits Rider (GSR) Selectin Rider Name Reasns fr Selectin Cst f Living Adjustment Rider (COLA) Own Occupatin Rider (OWN OCC) Selectin Rider Name Reasns fr Selectin RetireGuard Rider (RGR) Shrt Term Disability Benefits Rider (STR) Scial Insurance Rider (SIR) Student Lan Rider (SLR) 5

8 Radius Chice may nt be available in all states. Radius Chice (plicy frm #XLIS-RC-15 and ICC15-XLIS-RC; ICC15-XLIS-RC in Nrth Carlina) is issued by Massachusetts Mutual Life Insurance Cmpany, Springfield, MA Plicies cntain exclusins and limitatins. Fr cst and cmplete details f cverage, please call yur MassMutual representative r MassMutual at (press 3) t be referred t a representative in yur area Massachusetts Mutual Life Insurance Cmpany, Springfield, MA All rights reserved. MassMutual Financial Grup is a marketing name fr Massachusetts Mutual Life Insurance Cmpany (MassMutual) and its affiliated cmpanies and sales representatives. DI2203RC 1216 CRN