Because the Partner You Choose Counts

An Industry Leader and Pioneer

Founded in 1939

Pioneered worksite benefits via payroll deduction in 1955 and laptop enrollment technology in early 1990s

Second-largest U.S. provider of voluntary worksite benefits*

60,000+ accounts and 2.9 million in force policies

Exceeded $1 billion in in-force premium in 2007

Operates in 50 states and DC; in New York, operates under Colonial Voluntary Benefits through an affiliate, The Paul Revere Life Insurance Company

*LIMRA International, “Worksite Marketing of Voluntary Products Quarterly U.S. Sales Survey Fourth Quarter 2007

One Source

Benefits Counseling Benefits Counseling

EnrollmentServicesEnrollmentServices

InsuranceProductsInsuranceProducts

The Competitive Edge

“By having a partner who’s flexible and provides multiple options, you can cover the breadth of your agency’s clientele. It gives you the tools to be able to satisfy clients in different size categories who care about their employees and want to communicate effectively to them.”

Brian Tarpey, president of The Tarpey Group, LLC, N.J.

Distinguish Yourself…

Furnish Solutions…

Preserve Your

Clients…

The Competitive EdgeEnjoy the Ease and the Accolades

6 Is a Perfect Number!

2008 Benefits Selling Readers’ Choice Awards Best disability product

Most innovative carrier

Carrier at the forefront of the consumer-driven health market

Most broker-friendly carrier

Best voluntary life insurance product

Best enrollment company (honorable mention)

Double-digit increases in health insurance premiums

Higher deductibles

Higher co-pays

Greater employee financial exposure

Employee attraction and retention issues

Voluntary Benefits Solutions The Challenges

Help clients manage costs and bridge gaps in their core benefits

Provide solutions for clients who are moving to high-deductible health plans

Offer a limited benefit medical plan for uninsured employees

Voluntary Benefits Solutions Our Products

1. Medical – Hospital Confinement Indemnity Insurance, Accident Insurance, Limited Benefit Medical Plan*

2. Income Protection – Disability Insurance

3. Catastrophic Illnesses – Cancer Insurance, Critical Illness Insurance

4. Survivor Benefits – Term and Cash Value Life Insurance

Employer Benefits Package

Medical

Life

Retirement

Colonial Life’s Personal Insurance Products

Voluntary Benefits Solutions Our Products

Underwritten by Colonial Life & Accident Insurance Company. Products have exclusions and limitations that may affect benefits payable. Coverage may vary by state and may not be available in all states.

Annual Employer Savings: $19,398

How Voluntary Benefits Can Work

Increase deductible by $1,000 Offer Hospital Confinement Indemnity plan* with

$1,000 benefit

Example based on group of 50 eligible employees, 2007 S.C. benefit rates, average age 35. Sample rates are for illustrative purposes only; rates may vary based on account type, state, group health carrier and other factors. *Medical BridgeSM 3000 Level 2: $1,000 Hospital Confinement Benefit, Employee-Only Coverage

Employee (EE)Deductible

MedicalBridgePremium

MonthlyGroup HealthPremium

AnnualEmployerFunding

$500.00

$1,500.00

$0

$18.50/EE/mo

$13,462.00

$11,845.50

$161,544.00

$142,146.00

One-to-one benefits counseling

Call center and co-browsing one-to-one options for employees who can’t meet face-to-face

Self-enrollment and group meeting alternative enrollment options

Flexible enroller payment options

Expertise in multi-state/multi-location accounts

Flexible Enrollment Options Tailored to Enrollment Needs

Turnkey benefits enrollment & communications

Business Quality Index (systematic tracking system)

Tracks persistency/customer satisfaction at the enroller level throughout account lifecycle

Independent post-enrollment surveys

Colonial Life College

Structured national training program

Certification programs:

Core benefit enrollments National Enrollment Team (“Best in the Business” designation) Consumer-driven benefits

Flexible Enrollment Options Enrollment Quality Control

Help employees understand their total benefits program and “hidden paycheck”

Boost job satisfaction and retention

No direct cost!

Benefits Counseling Benefit Reps Who Work With You

93% of employers surveyed say personal benefit communications are valuable tools for recruiting and retaining employees. - Benefit News.com, “Survey says communication is key to benefits understanding and appreciation,” December 2006

93% of employers surveyed say personal benefit communications are valuable tools for recruiting and retaining employees. - Benefit News.com, “Survey says communication is key to benefits understanding and appreciation,” December 2006

Personal Salary Illustrations allow employees to see how their choices affect their paycheck

Benefits Counseling

Benefits Communication Tools

Employer’sContribution

Customized Benefits Statement illustrates the employer’s investment in the employee

Benefits Counseling

Benefits Communication Tools

Free Premium Only Plans (POPs)

Discounted Flexible Spending Accounts (FSAs)

Peace of mind – Help ensure clients understand their options, have access to their plan document and stay in compliance

Strategic alliances – Ceridian and Ameriflex

Section 125 Programs

Service You Can Trust

99 percent of plan administrators say it’s easy to reconcile our

invoices.

Our goal is to make doing business with us as easy as possible

We make sure of it:o Independent LIMRA

surveyso Internal measureso Independent customer

research

Service You Can Trust What the Surveys Say

Brokers voted us the most

broker-friendly carrier in 2008.

9 in 10 claimants voice strong approval for the service they’ve received from us and would recommend

us to others.*

99 percent of plan administrators say it’s easy to reconcile our

invoices.

Our customer service reps

consistently score above 90 percent for their courtesy,

accuracy, professionalism and knowledge.*

A means to fund core enrollments and benefits counseling services

No hassle... (we get it!)

Commitment to honoring Broker of Record letters

By partnering with us, you can take advantage of...

Service You Can Trust Broker Services

Broker website

Broker Service Center

Marketing and enrollment materials

Hardcoded commissions

An additional revenue stream

By partnering with us, you can take advantage of...

Service You Can Trust Broker Services

Broker Commissions

Are you using more than one company for voluntary benefit offerings and enrollment?

How much of your gross commission is going toward funding those services?

Are you ever billed for additional expenses after the enrollment ends?

What value-added services are your clients getting at no additional charge?

How much do you net from your voluntary benefits business?

Broker Commissions

Company A STD Gross Commission 65.0%

Enrollment Costs (70% of gross)45.5%

Net After Enrollment (30% of gross) 19.5%

How much do you net from your voluntary benefits business?

Example of Net Earnings

1

When you compare nothing but net, you can typically earn more with us than you net with our top competitors!

Higher Broker Commissions

Nothing but NET

Colonial Life Can Give You HIGHER Commissions!

WHY? Because we significantly raised our commission rates in 2008 and we don't charge to enroll your business.

Applies to new accounts with an effective date of Nov. 1, 2008, or later

Choose a Partner You Can Count On

We work with you while you work for your clients

We add value: Voluntary benefits and

services that increase employee understanding and appreciation of all their benefits

We’re Colonial Life. And we’re making benefits count.

©2008 Colonial Life & Accident Insurance Company.