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Next Generation ProVider Plus

Next Generation ProVider Plus. Guardian DI Brokerage www.DisabilityQuotes.com. For Producer Use Only. Not For Use With The General Public. Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned Stock subsidiary of the

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Next Generation ProVider Plus

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  1. Next Generation ProVider Plus Guardian DI Brokerage www.DisabilityQuotes.com For Producer Use Only. Not For Use With The General Public. Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned Stock subsidiary of the Guardian Life Insurance Company of America (Guardian),New York, NY, or provided by Guardian. Product provisions and features vary by state to state.

  2. Features Remaining The Same • Presumptive Total Disability • Capital Sum Benefit • Waiver of Elimination Period • Rehabilitation Benefit • Transplant & Cosmetic Surgery Benefit • Suspension During Military Service • Level & Graded Premium Options

  3. CurrentProVider Plus True Own Occupation for the entire benefit period for Occupation Classes 6 – 4P Five years of True Own Occupation for Class 3 Updated ProVider Plus True Own Occupation for the entire benefit period for all Occupation Classes Specialty language Total Disability

  4. Current ProVider Plus Embedded in the base contract Only recognizes specialties of the American Board of Medical Specialties or the American Dental Association UpdatedProVider Plus Available only to medical & dental risks Specialty Protection

  5. Specialty Language • Current ProVider Plus: If your occupation is limited to a single medical specialty certified by the American Board of Medical Specialties or a single dental specialty recognized by the American Dental Association, we will deem your specialty to be your occupation. • Updated ProVider Plus: If you have limited your occupation to the performance of the material and substantial duties of a single medical specialty or a single dental specialty, we will deem that specialty to be your occupation.

  6. Own-Occupation Marketplace • (1) With MassMutual and Standard, policies with True Own Occupation have a 24-month mental disorder limitation in all jurisdictions • (2) With MassMutual, MetLife and Union Central, not all medical and dental specialties have True Own Occupation • (3) With the current ProVider Plus specialty language does not recognize sub-specialties • (4) With Standard, specialty language applies to physicians and attorneys – specialty language is not available to dentists • This comparison is based on the most recent information available to us at the time of creation of this comparison. It is not intended • To be complete or compare all contract provisions. Refer to actual insurance policies for additional information.

  7. Guard-O-Matic • No Modal Factor for GOM (monthly premiums) • Saves between 3-5% • GOM premium is 1/12 of Annual Premium

  8. Current ProVider Plus X45 (graded lifetime extension benefit period) To Age 65 5 Years 2 Years Updated ProVider Plus X45 (graded lifetime indemnity for total disability benefit) To Age 67 To Age 65 10 Years 5 Years 2 Years Benefit Periods

  9. Current ProVider Plus During disability: Refunds premiums due and paid during the elimination period Waives premium for 3 months following recovery Updated ProVider Plus During disability: Refunds premiums paid that are attributable to the period of disability Waives premium for 6 months following recovery Waiver of Premium

  10. Other New Items • Step-rate premium option • Workplace Modification Benefit • Managerial Duties Endorsement • Client friendly schedule page • One policy – multiple layers of coverage • Improved readability

  11. New Riders • Additional Monthly Benefit Rider • Retirement Protection Plus Rider • Automatic Benefit Enhancement Rider

  12. Current ProVider Plus (AIR) Rider has a premium 4% Fixed Interest Compound Increases Updated ProVider Plus (ABE) No cost rider 4% Fixed Interest Compound Increases ABE – Automatic Benefit Enhancement Rider

  13. Riders in Common • Social Insurance Substitute Rider • Partial Disability Benefit Rider • Cost of Living Adjustment Riders • Catastrophic Disability Benefit Rider • Unemployment Waiver of Premium Rider • Future Increase Option Rider • Residual Disability Benefit Rider

  14. Current ProVider Plus 3% Maximum / 0% Floor Compound Interest 6% Maximum / 0% Floor w/Compound Interest Annual increases for both riders are based on changes to CPI-U Updated ProVider Plus 3% Fixed w/Compound Interest 6% Maximum with 3% Floor w/Compound Interest Annual increases based on changes to CPI-U Four-Year Delayed 3% Fixed Compound Interest COLA Riders

  15. Current ProVider Plus Successful exercises are issued a separate policy with a policy fee for the amount No special option dates Updated ProVider Plus Successful exercises are issued an AMB rider for the amount issued Special Option Dates Date declared by the Company Loss of GLTD (replaces GDR) The 1/3 rule does not apply for FIO amounts under $1,000 FIO Rider

  16. Current ProVider Plus Triggers on 20% loss 50% benefit for first 6 months Proportional benefit thereafter 6 month averaging Greater than 75% loss equals 100% benefit $500 rule Indexation of Prior Income Updated ProVider Plus Triggers on 15% loss Loss of income benefit for first 12 months Proportional benefit thereafter Greater than 75% loss equals 100% benefit Explicit Recovery Benefit Indexation of Prior Income Residual Disability Rider

  17. Premiums • Improved Class 6 premiums • Competitive COLA premiums in addition to higher guaranteed indexing • Lower premiums for young professionals • Improved female premiums • Competitive unisex premiums • No fee for Guard-o-matic • Lower premiums for RPP

  18. Payment Options • Step Rate Premiums – New • Available to issue ages up to age 40 • Premiums remain level to age 35 or 5 years, whichever is longer • The ultimate premium is equal to 95% of the attained age level premium • Graded & Level Premiums • Same approach

  19. Step-Rate Example • Example • Male Select Risk, Issue Age 30, To Age 65 Benefits • $4,000 of Monthly Indemnity • Residual Disability Benefits & 3% COLA • The Level Annual Premium = $1,581.20 • Step Rate Premium • The Initial Annual Premium = $1,339.20 For 5 Years • The Ultimate Annual Premium = $1,803.60 To 65 • The Introductory Graded Annual Premium is $620.80

  20. Class 6 Rates • $4,000 Monthly Indemnity with Residual Disability Benefits • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $ 918.00 $ 710.00 - 22.7% • 35 $1,226.80 $1,067.20 - 13.0% • 45 $1,897.60 $1,612.80 - 15.0% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,284.80 $1,128.80 - 12.1% • 35 $1,939.20 $1,668.80 - 13.9% • 45 $2,696.40 $2,223.20 - 17.5%

  21. Class 6 w/ COLA • $4,000 Monthly Indemnity with Residual Disability Benefits & 3% COLA • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,084.40 $ 841.60 - 22.4% • 35 $1,434.00 $1,227.20 - 14.4% • 45 $2,153.60 $1,863.20 - 13.5% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,542.00 $1,260.40 - 18.3% • 35 $2,302.00 $1,878.00 - 18.4% • 45 $3,082.80 $2,510.40 - 18.6%

  22. Class 5 & 5M • $4,000 Monthly Indemnity with Residual Disability Benefits • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $ 995.20 $ 895.60 - 10.0% • 35 $1,331.20 $1,350.40 + 1.4% • 45 $2,059.60 $2,046.40 - 0.6% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,394.00 $1,427.60 + 2.4% • 35 $2,105.20 $2,114.80 + 0.5% • 45 $2,928.40 $2,823.20 - 3.6%

  23. Class 5 & 5M w/COLA • $4,000 Monthly Indemnity with Residual Disability Benefits & 3% COLA • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,176.40 $1,063.60 - 9.6% • 35 $1,556.80 $1,554.40 - 0.2% • 45 $2,337.60 $2,365.60 + 1.2% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,673.60 $1,595.60 - 4.7% • 35 $2,499.60 $2,381.20 - 4.7% • 45 $3,348.40 $3,189.60 - 4.7%

  24. Class 4 & 4M • $4,000 Monthly Indemnity with Residual Disability Benefits • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,344.80 $1,130.40 - 16.0% • 35 $1,723.20 $1,709.20 - 0.8% • 45 $2,690.80 $2,594.80 - 3.6% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,902.80 $1,806.80 - 5.0% • 35 $2,826.80 $2,680.80 - 5.2% • 45 $3,938.00 $3,538.60 - 9.0%

  25. Class 4 & 4M w/COLA • $4,000 Monthly Indemnity with Residual Disability Benefits & 3% COLA • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,599.20 $1,343.20 - 16.0% • 35 $2,024.00 $1,968.20 - 2.7% • 45 $3,059.20 $3,001.20 - 1.9% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $2,296.40 $2,020.00 - 12.0% • 35 $3,368.40 $3,020.40 - 10.3% • 45 $4,509.20 $4,050.00 - 10.2%

  26. Class 3 & 3M Premiums • $4,000 Monthly Indemnity with Residual Disability Benefits • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,641.80 $1,362.40 - 17.0% • 35 $2,127.60 $2,063.20 - 3.0% • 45 $3,341.20 $3,134.40 - 6.2% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $2,360.80 $2,182.00 - 7.6% • 35 $3,568.40 $3,240.40 - 9.2% • 45 $4,985.60 $4,331.20 - 13.1%

  27. Class 3 & 3M w/COLA • $4,000 Monthly Indemnity with Residual Disability Benefits & 3% COLA • Benefits To Age 65, 90 Day Elimination Period • Male Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $1,950.00 $1,620.80 - 16.9% • 35 $2,500.40 $2,377.20 - 4.9% • 45 $3,798.00 $3,626.00 - 4.5% • Female Select Risks • Age Current ProVider Plus Updated ProVider Plus • 25 $2,842.00 $2,440.40 - 14.1% • 35 $4,252.40 $3,650.80 - 14.1% • 45 $5,707.20 $4,895.60 - 14.2%

  28. 10-Year Benefit Period • New benefit period targeting middleaged clients • 35 year olds will pay approximately 26% less than with a To Age 65 benefit period • 45 year olds will pay approximately 20% less than with a To Age 65 benefit period • 50 year olds will pay approximately 11.5% less than with a To Age 65 benefit period • Also an option for underwriters when confronted by an adverse risk

  29. 4-Year Delayed COLA • A new Cost of Living Adjustment rider • Unique for the IDI industry • The insured self-insures the inflation risk of a short duration disability • Provides a guaranteed 3% compound indexation of benefits starting on the 4th anniversary of claim • The 4-Year Delayed COLA costs less • Approximately 30% less for a 25 year old • Approximately 35% less for a 35 year old • Approximately 32% less for a 45 year old

  30. ALL NEW RPP • Male Select Risks • $1,000 Monthly Indemnity with 3% COLA,Benefits To Age 65, 180 Day Elimination Period • Age Current ProVider Plus Updated ProVider Plus Difference • 25 $254.80 $171.20 - 32.8% • 35 $324.70 $236.40 - 27.2% • 45 $466.10 $340.30 - 27.0% • 25 $274.30 $208.70 - 23.9% • 35 $350.40 $291.20 - 16.9% • 45 $504.00 $422.50 - 16.2% • 25 $363.90 $256.40 - 29.5% • 35 $448.30 $360.90 - 19.5% • 45 $651.20 $527.30 - 19.0% • 25 $437.40 $305.10 - 30.2% • 35 $547.50 $432.20 - 21.1% • 45 $801.20 $634.50

  31. RPP – Female Rates • Female Select Risks • $1,000 Monthly Indemnity with 3% COLA,Benefits To Age 65, 180 Day Elimination Period • Age Current ProVider Plus Updated ProVider Plus Difference • 25 $ 351.90 $245.10 - 30.3% • 35 $ 508.00 $350.20 - 31.1% • 45 $ 657.60 $450.30 - 31.5% • 25 $ 379.90 $302.30 - 20.4% • 35 $ 549.60 $435.00 - 20.9% • 45 $ 712.20 $562.00 - 21.1% • 25 $ 512.90 $375.00 - 26.9% • 35 $ 732.00 $543.20 - 25.8% • 45 $ 949.20 $703.90 - 25.8% • 25 $ 626.40 $449.30 - 28.03% • 35 $ 916.00 $653.70 - 28.6% • 45 $1,192.00 $849.20

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