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Independent ~ Proven Experience ~ Market Strength Presentation for UNION COUNTY PUBLIC SCHOOLS, TENNESSEE August 2, 2011 Unlock Your Benefits Administration and Enrollment Potential With...

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Independent ~ Proven Experience ~ Market Strength 2

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Employee Benefit Portal Electronic Enrollment with one-on-one counseling T & S will provide substitutes Our Benefit Representatives are not paid a commission We are totally independent T & S provides live Customer Service. You are not told to contact the carrier. You can call: 1-888-908-2637 Independent ~ Proven Experience ~ Market Strength 3

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My Benefits Portal Your employee benefits on line. Available to you 24/ 7. 4 4

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TCRS and Union County Public Schools Analysis of coverage 6 6

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Disability retirement: TCRS Provided disability benefits are a component of your state retirement pension plan. Benefits vary if incurred off the job or on the job. Benefits can vary by length of service. Approval for benefits is not automatic. The application process normally takes 2-3 months. Disability defined: permanent in nature. Benefits are designed to provide a secure income to you if you become sick or injured, can no longer perform the essential duties of your job, and have a condition that is permanent in nature. 7

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Disability benefits Analysis of coverage 8 8

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1. Provides employees with greater flexibility to customize disability plan 2. Employee can choose from 6 Elimination Period options 3. Employee can elect increments of $100 up to 67% of covered income up to $7,500 per month 4. First 12 months of disability does not offset with any sources of income Educator Plus 5. 1 st Day Hospital Benefit: If Elimination Period is 30 days or less, the Elimination Period is waived for in patient admittance (i.e.. Pregnancy) Educator Plus Highlights of Disability Plan 11

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6. Minimum benefit is 25% Educator Plus 7. Limited Pre-Existing Benefit: 3 month benefit is payable if disability is determined to be a pre-existing condition Educator Plus 8. Extended Disability: Additional benefit amount paid for 5 years beyond maximum durations if 2 of 5 ADLs cannot be met Highlights of Disability Plan continued.. 12

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Comparison of rates $36k salary, $1,800 benefit Educator plansUSAble - 1USAble - 2Reliance Standard Plan 1 Elimination period 1 / 461 / 610 / 314 / 1430 / 3061 / 6190 / 90 Ages 25-29 $50.40$21.24$47.88$39.60$28.08$18.00$7.92 Ages 35-39 $56.88$27.36$52.56$49.50$37.98$23.40$17.64 Ages 45-49 $69.48$38.88$63.00$56.70$54.36$33.12$30.78 Ages 55-59 $95.40$61.92$90.72$83.34$81.00$55.80$48.42 13 Keep in mind these plans automatically combine short and long-term coverage.

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Financial strength USAbleReliance Standard Insurance in force$38 billion$144 billion Total assets$392 million$3.5 billion AM BestAA 14

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Group Life benefits Analysis of coverage 15 15

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Base Life and AD&D Your Base Life and AD&D benefit will now be provided by Reliance Standard. Your new benefit amount will be $12,000 life and accidental death and dismemberment. 16

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Voluntary Life benefits Analysis of coverage 17 17

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Key provisions 18 AgeUSAbleRLSI Max issue employee 5 x salary to $300k$500k Guarantee issue employee 5 x salary to $100k$200k Reduction formula 1/3 at age 65 and again at age 70 To 60% @ 75, to 35% @ 80, to 27.5% @ 85, to 20% @ 90 Spouse guarantee issue50% of ee to $30k $50k, and is not tied to ee participation Child benefit$10k Waiver of premiumAfter 6 months, to age 65After 6 months, to age 70 Accelerated death benefit50% up to $150k50% up to $250k Portability Included at different rates, may not be retired or disabled Included at different rates, may be retired Conversion Included 18

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Rate Comparison of Voluntary Group Term life $75,000 Example of $75,000 of Coverage Monthly Premium AgeUSAbleReliance Standard 25 - 29$6.00$4.88 35 - 39$10.50$7.13 45 - 49$27.00$18.00 55 - 59$73.50$47.25 19

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1.Rates are 20% to 40% lower on every age band than in force plan 2.The maximum benefit level is increased from $300,000 to $500,000 3.There is no salary limitation on the benefit amount for employees 4.Guarantee Issue Amount is increased from $100,000 to $200,000 for employees 5.Guarantee Issue Amount for spouse is increased from $30,000 to $50,000 6.Spouse only coverage allowed 7.Spouse not capped at 50% of employee amount 8.Spouse can elect amount up to $500,000 9.Age reduction doesnt begin until age 75 for employee. Which is increased from 65 under the current plan 10.Portability included RECOMMENDATION RELIANCE STANDARD 20

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Permanent Life benefits Analysis of coverage 21

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If I had my way I would write the word insurance over the door of every house, because I am convinced that for the sacrifices which are considerably small, families can be secured against catastrophes which would otherwise smash them forever. Winston Churchill said: 22

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A man who dies without adequate life insurance should have to come back and see the mess he created. Will Rogers said: 23

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24 Why do employees prefer permanent life insurance made available at work? Individually owned policy that follows an employee into their retirement years with premiums that will not increase with age. What is the annual % of death claims paid by life insurance? Permanent life:97% Term life: 3% 24

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Independent ~ Proven Experience ~ Market Strength Fidelity Lifetime Life Insurance & Long-Term Care Life Insurance w/Guaranteed Rates to age 120 Long-Term Care Protection to age 120 Accelerated Death Benefit for Terminal Illness Guaranteed rates to age 120, portable and individually-owned! Other Group Life coverage decreases with age and premiums increase. Pays 4% of Face Amount paid monthly for up to 75 months (6+ Years)! Automatically included, 50% of Face Amount advanced if diagnosed with a terminal illness This is the most ECONOMICAL and EASIEST way to buy LTC COVERAGE! 25

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Fidelity Lifetime Life Insurance & Long-Term Care Future Purchase Option Limited Underwriting Protects future insurability, opportunity to increase coverage on an annual basis, even as health changes! Employee Coverage Spouse Coverage Child(ren) Coverage Up to $75,000 for employees, NO HEALTH QUESTIONS Up to $150,000 for employees, 3 HEALTH QUESTIONS Up to $75,000 for spouses, 3 HEALTH QUESTIONS Childs Term Rider Benefit covers all dependent children in family (18 and under on issue date, can remain on until age 26). NO HEALTH QUESTIONS 26

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Cancer Plan benefits 27

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Dental Plan benefits 28

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Humana Dental Renewing dental benefits with Humana Current 12thlyRenewal 12thly Schedule D Elite Choice 405Schedule D Elite Choice 405 Single$16.70$23.58$16.70$25.68 E + 1$31.38$47.32$31.38$51.54 Family$48.42$86.68$48.42$94.40 Current 10thlyRenewal 10thly Schedule D Elite Choice 405Schedule D Elite Choice 405 Single$20.04$28.30$20.04$30.82 E + 1$37.66$56.78$37.66$61.85 Family$58.10$104.02$58.10$113.28 29

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Benefits Humana Base planBuy-up plan Annual deductible$50$25 Provider networkNone Out-of-network reimbursementN/A80th percentile U&C Preventive services Paid according to schedule 100% Basic services Paid according to schedule 80% Major services Paid according to schedule 50% Ortho services50% Annual max$1,000 Ortho lifetime max$1,000$1,500 30

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Dental Return On Investment Average single adult retail expenses are $326 for preventive services Average retail expenses for a family of four for preventive services is $1304. Average single premium paid for year of $308. Average family premium for year of $1133. Dental Benefits vs. Premiums Elite Choice 405 Plan 31

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Vision Plan benefits 32

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SUPERIOR VISION New Vision Carrier SUPERIOR VISION Superior Vision has a combination of better benefits and network access Rate guarantee for 3 years Rates Humana renewal rates (12thly) Superior 12thly Rates Superior 10thly Rates Employee Only$8.34$7.22$8.66 Employee + 1$16.66$13.98$16.78 Family$22.32$20.58$24.70 Rate Guarantee2 Years3 Years 33 Current PlanNew Plan

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Benefits Superior Copays Exam$10 Materials$15 Frequencies 12/12/24 Network benefits Exam100% after copay Single vision lenses100% after copay Bifocal vision lenses100% after copay Trifocal vision lenses100% after copay Frame allowance$100 Contact lens allowance$120 Fitting fee$25 copay (Previously $40 wholesale) (Previously $105) (Previously deducted from allowance)

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Sample of network providers Remember that not all providers are contracted for all services and/or discounts. Prior to your appointment, confirm services, discounts, and acceptance of the Superior Vision Plan with the provider. http://www.superiorvision.com/ Providers < 20 miles of district officeHumanaSuperior Associates in EyecareMaynardvilleYes Halls Vision ClinicKnoxvilleYes Dr. Mary Ann Marston & Assoc.KnoxvilleYes LenscraftersKnoxvilleYes Sears OpticalKnoxvilleYes John CondryKnoxvilleYes Mountain City EyecareKnoxvilleYes Elliott EyecareClintonYes Turner VisionKnoxvilleYes Dr. Mark Lynn & Assoc.KnoxvilleYes Dr. Philip JarmonKnoxvilleYesNo Wal-MartKnoxvilleNoYes Volunteer EyecareKnoxvilleNoYes Sam's ClubKnoxvilleNoYes Dr. Bizer's VisionWorldKnoxvilleNoYes Rhyne and Patton OptometristsKnoxvilleNoYes Center for SightKnoxvilleNoYes The Optical CenterKnoxvilleNoYes 35

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