A Technical Marketing presentation for advisers highlighting the need and opportunities for Serious Illness Cover Booster.

1. Serious Illness Cover Booster
Even more help coping with the long-term effects
of some serious illnesses
For Advisers

2. 2
Earlier diagnosis mean higher survival rates
More people are being diagnosed with cancer earlier, but fewer cases get to an advanced stage
Source: Cancer Research UK

3. 3
It means a growing diagnosis gap
Gap between diagnosis and start of traditional critical illness cover is growing
Critical
Severe
Chronic
A severity based approach means we can better meet
customer expectations
Traditional
Critical illness
payment level
Typical point
of diagnosis
Serious Illness Cover
provides more cover from
the point of diagnosis

4. 4
Traditional critical illness cover
Cover is designed to typically pay out for critical conditions only
Payout
A traditional critical illness policy
pays out 100% on most
conditions covered….
Conditions covered
Partial payments of around 25%
may be made on some policies
on certain named conditions
Diagrams are only illustrative of how cover works

5. 5
Comprehensive Serious Illness Cover
Broader cover with more appropriate payouts mean we can better meet customer expectations
Payout
Conditions covered
Up to twice1 as likely to
pay out compared to typical
critical illness cover
Diagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013

6. 6
Comprehensive Serious Illness Cover with Booster
Payout
For the same long-term conditions an
additional 10% boost for every child
named on the policy
For certain long term conditions it boosts
payments from 100% up to 200%,
depending on age at claim
Conditions covered
Serious Illness Cover Booster provides a
100% payment on conditions typically
covered at 100% by CIC
Cover for early stage illnesses with
Comprehensive Serious Illness Cover
Diagrams are only illustrative of how cover works

7. 7
Comprehensive Serious Illness Cover with Booster
Payout
Conditions covered
Up to twice
the amount for
certain
conditions,
compared to
typical critical
illness cover
Up to twice1 as likely to
pay out compared to typical
critical illness cover
Diagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013

8. 8
What customers said
What cover type appeals to you most?
Relative appeal of cover options
+28%
+58%
CIC SIC A Hybrid
Source: Immerse research (2013)

9. 9
The need for extra cover
Example
Ben
– 30 years old
– Takes out Comprehensive Serious Illness Cover
– £100,000 sum assured
• Unfortunately Ben is diagnosed with Multiple Sclerosis when he
reaches 34.
• His condition is quite severe leaving him unable to do a number of
activities such as washing without some assistance.
• He receives a payout, and because he had Serious Illness Cover
Booster it is boosted 75% to £175,000.
• That is £75,000 more than if he just had Serious Illness Cover,
and it means Ben can afford a lot more help to get on with life
including modifications to his home and improved mobility.
100,000
175,000
With Serious Illness Cover Booster
Without Serious Illness Cover Booster

10. 10
Why recommend Serious Illness Cover with Booster
Give your clients more
• Cover for early stage illnesses
– Even less severe illnesses have an impact on customers. So Comprehensive Serious
Illness Cover offers cover for more early stage conditions than a typical critical illness
policy. In fact your clients may be up to twice1 as likely to get a payout.
• 100% payment for conditions typically covered by critical illness
– For some customers having a 100% payout may be important. Serious Illness Cover
Booster increases the payments made on our Serious Illness Cover, so that you can be
sure clients will get a 100% payment for the conditions that are paid out at 100% by a
typical critical illness policy
• Boosted payments for long-term illnesses
– Certain conditions can have a bigger long-term financial impact, particularly if they
happen when your client is younger or if they have a family. Serious Illness Cover
Booster will increase the payout made for certain conditions from 100% up to 200%
depending on their age at the point of claim.
• Additional boost for children
– If your client receives a boost for a long-term illness, we will also pay an additional
10% for each child named on the plan (up to £25,000 each), recognising the additional
costs you client may need to cover.
1 Based on analysis by Hannover Re UK Life Branch, August 2013

11. Vitality Optimiser
A new generation of protection

12. Vitality Optimiser: A new generation of protection
Regular behavioural nudges
Annual
cash back
Silver Gold Platinum
£50 £75 £100
£100 £150 £200
Double cashback for joint PruHealth/ PruProtect members
1 2 3 4 5 6 7 8 9 10 11
1 Incentivise behavioural changes
Immediate reward
Up to 40% premium
discount
2 Integrated wellness
Integrated healthy living
rewards programme
3 Fairer approach to pricing
Bronze Silver Gold Platinum Market premium

13. With Vitality Optimiser
Charlie gets more cover
13
Vitality Optimiser example
Using Vitality Optimiser to help customers get more cover
Cover Total monthly cost
Serious Illness Cover £33.44
+ SIC Booster £36.23
+ Vitality Optimiser £33.79*
A cinema ticket £23.79
Engage with Vitality to keep the
premiums low and stay healthy
and pays less
*Including the cost of Vitality Plus fee of £3 per month. Prices as at 21 July 2014
Charlie
– 30 years old
– Takes out Comprehensive Serious Illness Cover
– Essentials Plan
– 25 year term
– £100,000 sum assured
– He also goes to the cinema once a month

14. Serious Illness Cover Booster - Appendix For Advisers

15. 15
Which conditions are boosted to 100%?
Original severity: D Original severity: C Original severity: B
Cancer Coronary artery by-pass grafts Aorta graft surgery
Heart valve replacement or repair Heart attack of specified severity
By-pass graft surgery to three or more coronary
arteries
Alzheimer’s disease - resulting in permanent
symptoms
Loss of a single hand or foot
Heart attack ejection fraction of between 40% and
45%
Benign brain tumour - resulting in permanent
symptoms or surgery
Loss of use of a whole hand Loss of a single limb
Coma - resulting in permanent symptoms Surgery for drug resistant epilepsy
Any neurological disease inability to perform 3 out of 6
functional activity tests
Motor neurone disease - resulting in permanent
symptoms
Any other cardiac condition ejection fraction of
between 40% and 45%
Multiple sclerosis - resulting in current symptoms Bilateral hemianopia
Parkinsons disease - resulting in permanent symptoms Connective tissue diseases - 3ADLs
Stroke – resulting in permanent symptoms
Cardiomyopathy ejection fraction of between 40% and
45%
Traumatic head injury - resulting in permanent
symptoms
Fibrotic lung disease with transfer factor 35% and 39%
of predicted
Creutzfeldt-Jakob disease - resulting in permanent
symptoms
Guillain-Barre syndrome
Dementia - resulting in permanent symptoms Home oxygen therapy
Encephalitis - resulting in permanent symptoms
Hypertrophic cardiomyopathy - maximal LV wall
thickness between 15mm and 25mm
Muscular dystrophy Severe chronic renal impairment
Progressive supra-nuclear palsy - resulting in
permanent symptoms
Stage IV chronic obstructive pulmonary disease
Spinal tumour
Third degree burns covering 15% of the body’s surface
area

16. 16
Which long-term illnesses are boosted above 100%?
Severity A conditions boosted from 100% up to 200%:
Alzheimer’s disease - permanent failure 4 out of 6
functional activity tests
Loss of muscle power resulting in the inability to grip
Progressive supra-nuclear palsy - permanent failure
4 out of 6 functional activity tests
Any neurological disease - permanent failure 4 out of
6 functional activity tests
Loss of speech
Rheumatoid arthritis - permanent failure 4 out of 6
functional activity tests
Benign brain tumour- permanent failure 4 out of 6
functional activity tests
Mental and behavioural disorder - persistent
confusional state to age 70
Severe visual impairment
Blindness
Mental and behavioural disorder - total lack of social
interaction to age 70
Stroke with residual deficit measuring 4 or above on
the modified rankin scale
Cauda equina
Motor neurone disease - permanent failure 4 out of 6
functional activity tests
Systemic lupus erythematosis - permanent failure 4
out of 6 functional activity tests
Coma causing permanent inability to perform 4 out
of 6 functional activity tests
Multiple sclerosis - permanent failure 4 out of 6
functional activity tests
Systemic sclerosis (scleroderma) - permanent failure
4 out of 6 functional activity tests
Creutzfeldt-Jakob disease- permanent failure 4 out of
6 functional activity tests
Muscular dystrophy - permanent failure 4 out of 6
functional activity tests
Third degree burns
Dementia - permanent failure 4 out of 6 functional
activity tests
Paralysis of limbs
Total and permanent disability - unable before age 65
to do at least four work tasks ever again
Encephalitis causing permanent inability to perform 4
out of 6 functional activity tests
Parkinson’s disease - permanent failure 4 out of 6
functional activity tests
Total and permanent disability - unable before age 70
to do your own occupation ever again
Giant cell arteritis - permanent failure 4 out of 6
functional activity tests
Permanent faecal incontinence
Total and permanent disability - unable to do at least
four tasks designed to assess whether you can look
after yourself ever again
Loss of hands or feet Persistent vegetative state
Traumatic head injury - - permanent failure 4 out of 6
functional activity tests
Loss of manual dexterity
Polyarteritis nodosa - permanent failure 4 out of 6
functional activity tests
Wegener’s granulomatos - permanent failure 4 out of
6 functional activity tests

17. 17
How are long-term illnesses boosted
Age related boost up to 200% of cover
• The % of cover paid will decrease by an additional 2.5% for every year they are diagnosed
after the age of 24. For lives 24 or younger we will pay 200%, and for those 64 and older
we will pay 100%.
Age attained at date of diagnosis % of Serious Illness Cover paid
16 - 24 200.0
25 197.5
30 185.0
35 172.5
40 160.0
45 147.5
50 135.0
55 122.5
60 110.0
64 and older 100.0