Rising health care costs are putting pressure on businesses to provide adequate medical coverage for employees and making coverage increasingly expensive for employees. The document discusses various insurance options that can help address these rising costs, including hospital indemnity insurance, accident insurance, critical illness insurance, disability insurance, and life insurance. It also discusses how these additional benefits can help attract and retain employees while providing tax savings for businesses.

2. Health Care Costs Are Rising Rising health care costs will exert significant pressure on businesses to maintain adequate coverage for their employees — and make medical coverage costs burdensome for all U.S. employees.* What can you do? * Towers Perris 2007 Health Care Cost Survey

3. Build a Competitive Benefits Program RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS At no direct cost to you!

4. Medical Hospital Confinement Indemnity Insurance Can help lessen the sting of the rising cost of health care. Helps offset gaps caused by deductibles and co-payments. Provides a lump-sum benefits for covered hospital confinement and covered outpatient surgery. RETIREMENT MEDICAL INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS CATASTROPHIC ILLNESSES

5. Medical Accident Insurance Helps offset unexpected medical expenses that can result from a fracture, dislocation or other covered accidental injury. Can be paired with Hospital Confinement Indemnity insurance. RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

6. Medical Colonial Health Advantage sm Provides a broad range of limited benefits and options. Doctor visits. Preventive care. Pharmacy. Hospital confinement. Surgery. RETIREMENT MEDICAL INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

7. Income Protection Disability Insurance Helps employees who might otherwise have to request loans or use all their savings while disabled due to a covered accident or covered sickness. Complements workers’ comp plan by providing off-the-job coverage. Provides a portion of an employee’s income to help make ends meet if he/she is disabled due to a covered injury or covered sickness. RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

8. Catastrophic Illness Cancer & Critical Illness Insurance Both complement medical plans and help relieve the financial burden of the employee dealing with a covered illness. Cancer insurance helps offset the out-of-pocket costs of non-medical expenses related to cancer diagnosis and treatment. Critical Illness insurance pays a lump-sum benefit for a covered critical illness such as heart attack or stroke. RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

9. Survivor Benefits Life Insurance Helps provide financial security for the family in the event of the employee or family member’s death. Term Life insurance provides for short-term needs. Universal Life insurance complements Group Term Life insurance coverage. RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

10. Enhance Benefits & Save on Taxes Through our marketing alliances, Colonial Life can enhance your employee benefits package by: Reducing payroll taxes. Increase employees’ spendable income. RETIREMENT MEDICAL CATASTROPHIC ILLNESSES INCOME PROTECTION REQUIRED BENEFITS WAGES SURVIVOR BENEFITS

11. Enhance Benefits & Save on Taxes Sample Premium Only Plan* *Based on 26 pay periods Savings Per Period $11.85 Total Annual Savings $308.10

12. Make a Difference Communication + Good Benefits = Lower Turnover: One-to-one meetings with a Colonial Life benefits representative enable each employee to: Personally review current benefits. Identify individual needs. Consider new options. Understand how those options affect their check. Understand your contribution.

13. Make a Difference Education + Understanding = Job Satisfaction: Sharpens employees’ understanding. Increases employees’ appreciation. Can help boost satisfaction and retention.

14. Paycheck Illustrations

15. Superior Services Easy, time-saving administrative services. At No Direct Cost To You!

16. E-Services Save you hours of valuable time. Prompt claims payments and less paperwork for you. Provide access to valuable resources & tools. Web-based & designed to provide small business with a paperless billing process.

17. Superior Services 9 in 10 Colonial Life claimants are satisfied with claims service and would recommend Colonial Life to others. 2007 LIMRA Survey

18. Count on Colonial Life To help you: Enhance employee appreciation of what you do for them. Keep costs down. Realize tax savings. Fill gaps in benefit programs. Consider new options.

19. Next Steps. . . It’s as easy as

20. ©2008 Colonial Life & Accident Insurance Company. Colonial Life products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand. Products have exclusions and limitations that may affect benefits payable. Coverage may vary by state and may not be available in all states.