1 Specialty Products for SBAM: Expanding Your Product PortfolioGroup Specialty Products: Expanding Your Product Portfolio Welcome to Specialty Products for SBAM: Expanding Your Product Portfolio WELCOME to group ancillary products: expanding your product portfolio Welcome! We are excited to share details about the Blue’s arrangement with Small Business Association of Michigan and their offering of LifeSecure and Dearborn National to provide group ancillary products. Before we get started, let’s take a moment for introductions. Kellie Neiryck, Scott Lyon?, Jon Luna, Mike Daubenmeyer, The specialty Benefits teams from Action Benefits and Grotenhuis. Kellie, would you like to say a few words? For Agent Use Only. Not for Solicitation Purposes.

2 EMPLOYER ANCILLARY PRODUCT PORTFOLIOGroup Specialty Products: Expanding Your Product Portfolio EMPLOYER ANCILLARY PRODUCT PORTFOLIO Dearborn National Life Short Term Disability Long Term Disability LifeSecure Insurance Company Personal Accident Hospital Recovery Employer ANCILLARY PRODUCTS PORTFOLIO To further the mission to excel in the delivery of health care-related products and services that emphasize access to quality health care at affordable prices, the Blues has made an arrangement with The Small Business Association of Michigan to offer their members Dearborn National and LifeSecure insurance company products. These products will be offered along side Blue Cross Blue Shield of Michigan and Blue Care Network medical, dental, and vision. Blue health coverage is the cornerstone for providing financial protection to families across Michigan and the new ancillary products expand the level of consumer protection the Blues can offer group members.

3 Group Specialty Products: Expanding Your Product PortfolioPORTFOLIO PROTECTION Short-term Disability Long-term Disability FINANCES Hospital Recovery Accident UNEXPECTED Life FUTURE PORTFOLIO PROTECTION Even with medical coverage the loss of income due to a serious illness, accident or death can cause many American's to fall into deep debt or bankruptcy. With Dearborn National and LifeSecure products, the Blues can help families protect their finances due to unexpected expenses that can effect their future. We put the products into three categories to demonstrate the how these products offer valuable protection to employees and their families. To protect employees income you can offer short and long term disability insurance which will help pay a portion of an employee’s income for a specific period of time. Employees don’t like unexpected surprises that can cause financial hardship. Offering Hospital Recovery and Accident Insurances will help employees by providing cash benefits for unforeseen medical events. Employees also would like to prepare for the future so offering Life Insurance helps in the planning process. You will learn more about these products’ valuable features in the next section. Protection Information Valid as of 04/13/2016

4 DEARBORN NATIONAL STRENGTHSGroup Specialty Products: Expanding Your Product Portfolio DEARBORN NATIONAL STRENGTHS A (Excellent) Dearborn National Life Insurance Company Dearborn National Underwriting Companies A+ (Strong) Serving the industry since 1969 billion of Life insurance in force $103 billion total assets $2.7 DEARBORN NATIONAL STRENGTHs The Blues chose Dearborn National because its superior rating demonstrates their strength and their ability to deliver on promises to policy holders. Dearborn National is not new to this game. They have over 45 years of experience and a broad selection of insurance products and services to customers across the country. Full suite of ancillary products and services. Employer-paid and voluntary Group Term Life and Disability. All administration is performed in the United States. Information Valid as of 04/13/2016

5 Group Specialty Products: Expanding Your Product PortfolioLIFESECURE STRENGTHS LifeSecure Insurance Company Parent Company LifeSecure Insurance Company Not Rated A- (Excellent) 47 States LIFESECURE STRENGTHS The Blues chose LifeSecure because the company offers a variety of insurance solutions that are designed to help offset the health-related financial risks for group customers and their employees. LifeSecure is a fast growing, national insurance company and licensed in almost every state with a constant focus on innovation and new technology solutions designed to simplify the buying and selling process. With its’ local presence and headquarters in Brighton, Michigan, they are committed to the Michigan market. Information Valid as of 04/13/2016

6 Group Specialty Products: Expanding Your Product PortfolioGroup Products Dearborn National GROUP PRODUCTS: Dearborn national Facilitator Note: You are responsible for timekeeping. The lesson should take no longer than 30 minutes in total. Read the script below when Dearborn National facilitates Group Life, STD and LTD products on slides 16-42 Facilitator Note: Read the paragraphs below when Dearborn National will not facilitate Life, STD and LTD products and features. Now that we have reviewed the Blues’ arrangements with SBAM ‘s endorsement of Dearborn National and LifeSecure, I am going to tell you more about the products core features. I’ll also point out value statements and competitive advantages along the way. We’ll start with Dearborn National. As a reminder, the SBAM Dearborn offering includes Life, Short-term, Long-term Disability Life, Short-Term Disability, and Long-Term Disability Information Valid as of 04/13/2016

7 SBAM Standard and SBAM AdvantageGroup Specialty Products: Expanding Your Product Portfolio SBAM Standard and SBAM Advantage SBAM Standard is offered to all members (1-99 eligible lives). SBAM Advantage (10 to 100 eligible lives) is offered to SBAM members who have SBAM sponsored Blue medical and existing life and/or disability with another carrier (cannot replace existing Dearborn National plan). SBAM Standard and SBAM Advantage SBAM’s dearborn national offering includes 2 programs. The SBAM standard which is offered to all members group sizes This plan can be offered when a group is establishing a plan for the first time or when replacing another carrier and the SBAM Advantage which is offered to members who have SBAM sponsored Blue medical and existing life and/or disability with another carrier.

8 SBAM LIFE AND DISABILITY standard offeringGroup Specialty Products: Expanding Your Product Portfolio SBAM LIFE AND DISABILITY standard offering For groups 1 to 99 eligible employees Basic Life, Short-Term Disability and Long-Term disability can be written on a stand-alone basis Basic Life is required in order to purchase dependent and Voluntary Life Basic Life, Short-Term and Long-Term Disability must be 100% employer-paid 100% participation is required

9 SBAM LIFE AND DISABILITY standard offering – con’tGroup Specialty Products: Expanding Your Product Portfolio SBAM LIFE AND DISABILITY standard offering – con’t Definition of full-time employment can be as high as 40 hours per week or as low as 20 Must be in business at least 1 year for Life and Short-Term Disability coverage Must be in business at least 2 years for Long- Term Disability coverage Can only be covered under one SBAM Participating Employer

10 SBAM standard offering Term Life and Accidental Death & DismembermentGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering Term Life and Accidental Death & Dismemberment Basic Life and AD&D Amounts $15,000 $25,000 $50,000 1x Basic Annual Earnings to $100,000 Dependent Life Amounts* Spouse $5,000 Child(ren) $2,000 – ages 6 months to 26 years Child(ren) $500 – birth to age 6 months DEARBORN NATIONAL GROUP TERM LIFE All options are guarantee issue to full amount elected. Age Reduction Schedules apply. Information Valid as of 04/13/2016

11 Group Specialty Products: Expanding Your Product PortfolioDearbornCaresSM Payment Now, Paperwork Later Losing a loved one can be emotionally and financially overwhelming.  DearbornCares provides an advance payment of the life insurance benefit to help beneficiaries cover their immediate expenses, such as funeral costs and medical bills. DEARBORN NATIONAL GROUP TERM LIFE Dearborn Cares is a new program that shows the compassion of this carrier. Information Valid as of 04/13/2016

12 Group Specialty Products: Expanding Your Product PortfolioDearbornCaresSM What is it? Pays up to $10,000 to named beneficiary(ies) on an employer-paid Basic life death claim Paid within 48 hours of Dearborn National receipt of claim Payable on claims with 1 or 2 named beneficiaries Information Valid as of 04/13/2016

13 Group Specialty Products: Expanding Your Product PortfolioDearbornCaresSM What is it? (con’t) Death Certificate not required for this payment. This is not an additional benefit. The amount of the total basic life benefit is reduced by the DearbornCares payment amount. If there are two named beneficiaries, each will receive their portion of the DearbornCares Basic Life amount. The remaining balance will be paid through the normal process. Benefits can be paid to the funeral home with appropriate documentation signed by designated beneficiary. Information Valid as of 04/13/2016

14 BENEFICIARY RESOURCE SERVICES™Group Specialty Products: Expanding Your Product Portfolio BENEFICIARY RESOURCE SERVICES™ Dearborn National Group Term Life Enhanced Product Services For the Member: Unlimited access via phone to grief counselors, legal advisors and financial counselors for a period of one year Five face-to-face sessions with grief counselors or legal advisors Funeral Planning Referrals and support services with follow up Beneficiary resource services The Beneficiary Resource Services is available to SBAM groups with Group Life Insurance and provides grief, legal and financial services to the insured and their families. Cover slide Dearborn National will provide Informational flyers to your group customers to share with their employees. The flyers lists the services offered and contact number. Beneficiary Resource Services is provided by Bensinger, DuPont & Associates (BDA). Information Valid as of 04/13/2016

15 TRAVEL RESOURCE SERVICES™Group Specialty Products: Expanding Your Product Portfolio TRAVEL RESOURCE SERVICES™ Dearborn National Group Term Life Enhanced Product Services Services include but are not limited to: Medical search referrals Medical Evacuation Monitoring of medical condition Repatriation from hospital to insured’s home Return of a travel companion and dependent children of the insured to their home Travel resource services Travel Resource Services is Another value add service for Group Term Life customers available to groups of 50 or more enrolled employees. With Dearborn National, travel does not have to be international or out of the country. Dearborn National has an arrangement with Europ Assistance USA, Inc. who essentially acts as a Concierge to provide needed services to insured members and their families while traveling, for business or pleasure. Their services include: Make arrangements for transportation and care for medical emergencies. Monitoring the situation to make sure the needed care and services are being delivered. Provide pre-trip information; repatriation of remains; travel companion or children assistance. Provide an advance to pay for services if needed. The insured will need to reimburse Europ Assistance. Finally, coordination of benefits is provided with the insured’s medical carrier. Again, informational flyers are distributed to employers to share with employees. It lists the services offered and contact number. Read the text on the bottom of the screen which is written in the Facilitator Note. Facilitator Note: This is a at the bottom of the slide: Travel Resource Services are provided and administered by Europ Assistance USA, Inc. Dearborn National brand companies are not affiliated with these service providers and do not provide any part of the services. Provides medical and travel assistance for employees and families traveling for business or pleasure 100 or more miles from home (includes travel within the United States as well as international travel). Travel Resource Services are provided and administered by Europ Assistance USA, Inc. Dearborn National brand companies are not affiliated with these service providers and do not provide any part of the services. Information Valid as of 04/13/2016

16 Group Specialty Products: Expanding Your Product PortfolioSBAM standard offering Voluntary Life and Accidental Death & Dismemberment Employee Elections Minimum $10,000/Maximum $500,000* Spouse Elections Minimum $5,000/Maximum $20,000 Dependent child(ren) $250 (14 days to 6 months of age) $10,000 after 6 months of age Must add in GI amounts DEARBORN NATIONAL GROUP TERM LIFE The portability standard on voluntary and supplemental for employees do not require evidence of insurability where other carriers may require evidence. Dependent Life insurance allows employees to provide on a voluntary coverage to their Spouses and Children. Dearborn National offers generous Maximums and Guarantee Issue for spouses. For example, it is not uncommon to have 100,000 maximum with 25,000 Guarantee Issue. When a Dearborn National Group Life plan includes an AD&D, the standard features includes: Seat Belt Benefit - Pays an additional benefit if insured employee is killed in an automobile accident while wearing a seat belt. Air Bag Benefit - Pays an additional benefit if insured employee is killed in an automobile accident in which an air bag properly inflated. Repatriation Benefit - Pays for preparation and transportation of remains if accidental death occurs to an employee more than 75 miles from the principal residence. Education Benefit - Pays an additional benefit to eligible dependent children at a school of higher learning, if the insured employee is killed in an accident. Dearborn National will offer Line of Duty and Felonious Assault coverage for certain segments e.g. retail and banking etc. *Maximum amount not to exceed 5x annual salary Information Valid as of 04/13/2016

17 Group Specialty Products: Expanding Your Product PortfolioSBAM standard offering Voluntary Life and Accidental Death & Dismemberment Guarantee Issue Limitations *Employee: the lesser of $300,000 or 3 times annual salary Spouse Guarantee Issue Child(ren) Guarantee Issue *Employees age $20,000 *Employees age 75 and over: All amounts require Evidence of Insurability Information Valid as of 04/13/2016

18 Group Specialty Products: Expanding Your Product PortfolioSBAM standard offering Voluntary Life and Accidental Death & Dismemberment Requirements Spousal voluntary life benefits not to exceed 50% of the employee elected amount Voluntary Life is both portable and convertible Voluntary Life/AD&D can only be purchased in conjunction with the group Basic Term Life/AD&D Voluntary Life/AD&D must be written with a policy effective date of not more than 60 days after the effective date of the group Basic Term Life/AD&D Information Valid as of 04/13/2016

19 Group Specialty Products: Expanding Your Product PortfolioSBAM standard offering Voluntary Life and Accidental Death & Dismemberment Requirements – con’t Any Voluntary Life/AD&D plan with an effective date of more than 60 days after the group Basic Life/AD&D plan will require Evidence of Insurability 25% employee participation is required for Voluntary Life If Voluntary Life/AD&D is cancelled, the group must wait 12 months to re-enroll Each sub-group must achieve 25% participation Age Reduction Schedules apply. Information Valid as of 04/13/2016

20 Short-Term Disability (STD) InsuranceGroup Specialty Products: Expanding Your Product Portfolio Short-Term Disability (STD) Insurance Short-term Disability Facilitator Note: Page 16 in the Participant Guide When 8 in 10 workers are living paycheck to paycheck, how long could an employee maintain their lifestyle if they are unable to work due to an injury or illness, even for a short amount of time? Most people do not have the necessary savings to cover living expenses during a short term disability. Inability to work due to a disability, sickness or injury, could devastate a family without disability income insurance to pay a portion of their income. . Dearborn National Information Valid as of 04/13/2016

21 SBAM standard offering - Short-Term DisabilityGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering - Short-Term Disability Benefit Duration Options 13 or 26 weeks Benefits begin on: 1st day accident/8th day illness 15th day accident/15th day illness Percentage of Salary: 66.67% Weekly Benefit Maximum: $1,000 Flexible product features Dearborn National has various Short-term Disability benefit types that can be used in combination with other types to accommodate your group’s needs. To meet the needs of employer’s contracts, Dearborn National will put union and non- union segments on the same contract which helps simplify processes like billing. Most other carriers do not. For example: Elimination Periods can be different from Accident versus Sickness Employers can dovetail the benefit duration of Long-term Disability plans with Short-term Disability, even when the plan is not Dearborn National’s. Dearborn National does not have Pre-existing limitations for Employer-Paid plans. For example if Dearborn National takes over a basic plan and an employee is pregnant we will cover that claim. Non-occupational coverage only is available since Workers’ Comp covers occupational related disabilities. Since most of Short Term Disability claims are due to maternity. To reduce the anxiety of waiting for a weekly check to arrive, Dearborn National offers the option to pay maternity claims in a lump sum at the time the claim is approved. Information Valid as of 04/13/2016

22 SBAM standard offering Short-Term DisabilityGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering Short-Term Disability Pre-Existing Conditions A Pre-Existing Condition is a sickness or injury for which the insured received treatment within 3 months prior to his or her effective date. A disability contributed to or caused by a Pre- Existing Condition within the first 12 months of the insured’s effective date will not be covered. Flexible product features Dearborn National has various Short-term Disability benefit types that can be used in combination with other types to accommodate your group’s needs. To meet the needs of employer’s contracts, Dearborn National will put union and non- union segments on the same contract which helps simplify processes like billing. Most other carriers do not. For example: Elimination Periods can be different from Accident versus Sickness Employers can dovetail the benefit duration of Long-term Disability plans with Short-term Disability, even when the plan is not Dearborn National’s. Dearborn National does not have Pre-existing limitations for Employer-Paid plans. For example if Dearborn National takes over a basic plan and an employee is pregnant we will cover that claim. Non-occupational coverage only is available since Workers’ Comp covers occupational related disabilities. Since most of Short Term Disability claims are due to maternity. To reduce the anxiety of waiting for a weekly check to arrive, Dearborn National offers the option to pay maternity claims in a lump sum at the time the claim is approved. Information Valid as of 04/13/2016

23 DISABILITY CLAIM MANAGEMENT PHILOSOPHYGroup Specialty Products: Expanding Your Product Portfolio DISABILITY CLAIM MANAGEMENT PHILOSOPHY A lenient zero-day residual for the elimination period: This allows the insured to satisfy the elimination period with either total or partial workdays, so that an employee can work part time without starting a new elimination period. An aggressive work incentive benefit for part-time work Allows a claimant to receive up to 100% of pre-disability earnings through employment and STD benefit for the duration of the claim DEARBORN NATIONAL DISABILITY CLAIM MANAGEMENT PHILOSOPHY Dearborn National’s philosophy is to focus on early intervention to get the best results for the employee. This allows employers to reduce or eliminate the costs of adding and training new staff or bridging responsibilities until the disabled employee returns to work. Employees get to maintain their quality of life while disabled. They are also more motivated to return to work after a disability because they satisfied when working. One such example of this philosophy in action is the Worksite Modification benefit . It is standard on all Dearborn National Short-term Disability contracts which is unique in the industry. Information Valid as of 04/13/2016

24 Enhanced Disability BenefitsGroup Specialty Products: Expanding Your Product Portfolio Enhanced Disability Benefits Survivor Benefit: If a family’s primary income provider should die while disabled, the family may not have income to help pay for unexpected medical and care expenses. Dearborn National’s Survivor Benefit provides an additional benefit payment upon death to help fill the gap. Pregnancy Claim Management: Among the features of Dearborn National’s Short-Term Disability program: Automatic 6 week approval* for traditional delivery Automatic 8 week approval* for C-Section One-time lump sum payment for the approved period for the birth of a child *From date of delivery Information Valid as of 04/13/2016

25 Group Long-Term Disability (LTD) InsuranceGroup Specialty Products: Expanding Your Product Portfolio Group Long-Term Disability (LTD) Insurance Group long-term disability INSURANCE Facilitator Note: Page 19 in the Participant Guide. People may think Long-term Disability insurance isn’t necessary or that Short-term Disability insurance will provide adequate protection of personal income for all accidents or illnesses. What people don’t know is that there are illnesses or accidents that create longer term disabilities. They also assume SS will be there for them in those situations. Dearborn National Information Valid as of 04/13/2016

26 SBAM standard offering - Long-Term DisabilityGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering - Long-Term Disability Elimination Period Options 90 Day or 180 Day Benefit Percentage: 60% Benefit Maximum: $6,000 Own Occupation Period: 24 months Benefit Duration Options 5 years or to age 70, whichever occurs first Social Security Normal Retirement Age Flexible product features Dearborn National has various Short-term Disability benefit types that can be used in combination with other types to accommodate your group’s needs. To meet the needs of employer’s contracts, Dearborn National will put union and non- union segments on the same contract which helps simplify processes like billing. Most other carriers do not. For example: Elimination Periods can be different from Accident versus Sickness Employers can dovetail the benefit duration of Long-term Disability plans with Short-term Disability, even when the plan is not Dearborn National’s. Dearborn National does not have Pre-existing limitations for Employer-Paid plans. For example if Dearborn National takes over a basic plan and an employee is pregnant we will cover that claim. Non-occupational coverage only is available since Workers’ Comp covers occupational related disabilities. Since most of Short Term Disability claims are due to maternity. To reduce the anxiety of waiting for a weekly check to arrive, Dearborn National offers the option to pay maternity claims in a lump sum at the time the claim is approved. Information Valid as of 04/13/2016

27 SBAM standard offering - Long-Term DisabilityGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering - Long-Term Disability Pre-Existing Conditions A Pre-Existing Condition is a sickness or injury for which the insured received treatment within 12 months prior to his or her effective date. A disability contributed to or caused by a Pre- Existing Condition within the first 24 months of the insured’s effective date will not be covered unless he or she received no treatment of the condition for 6 consecutive months after his or her effective date. Information Valid as of 04/13/2016

28 SBAM standard offering - Long-Term DisabilityGroup Specialty Products: Expanding Your Product Portfolio SBAM standard offering - Long-Term Disability Flexible Product Features Zero Day Residual for elimination period Generous partial disability calculation Catastrophic Disability Benefit Rehabilitation Incentive Income Benefit Rehabilitation Assistance Disability Resource Services™ Flexible product features To offer greater protection, you can offer your group customer’s Dearborn National Group Long-term Disability product. Dearborn National does not require a loss of income during Elimination period. Employees can receive a salary continuance, Personal Time Off (PTO) or other sources of income that replace their salary and Dearborn National will still count those days toward the Elimination Period. Employees must meet the standard Definition of Disability which, is the inability to perform in one’s own occupation, and must have a loss of income resulting from the disability, in order to qualify for benefits. Income Loss Definitions: 80% or more = totally disability 20% to 80% = partial disability And, less than 20% = not disabled at all Dearborn National has “Flexible Own Occupation” period definitions, which can differ based on class, ranging from 12 months to Social Security Normal Retirement Age. Information Valid as of 04/13/2016

29 Disability Resource Services™Group Specialty Products: Expanding Your Product Portfolio Disability Resource Services™ Web-based EAP services to LTD insured employees Unlimited telephonic counseling service for LTD insured employees who are facing their biggest challenge: living with a disability Staff of experts available 24 hours a day, 7 days a week to provide counseling or referrals Face-to-face working sessions: Three sessions available to the LTD insured employee Flexible product features To offer greater protection, you can offer your group customer’s Dearborn National Group Long-term Disability product. Dearborn National does not require a loss of income during Elimination period. Employees can receive a salary continuance, Personal Time Off (PTO) or other sources of income that replace their salary and Dearborn National will still count those days toward the Elimination Period. Employees must meet the standard Definition of Disability which, is the inability to perform in one’s own occupation, and must have a loss of income resulting from the disability, in order to qualify for benefits. Income Loss Definitions: 80% or more = totally disability 20% to 80% = partial disability And, less than 20% = not disabled at all Dearborn National has “Flexible Own Occupation” period definitions, which can differ based on class, ranging from 12 months to Social Security Normal Retirement Age. Standard on all LTD Plans: Information Valid as of 04/13/2016

30 Group Specialty Products: Expanding Your Product PortfolioDEARBORN NATIONAL LTD Claims Management Early intervention by in-house claim experts Seamless integration of STD and LTD claims Comprehensive return-to-work programs Dearborn National long term disability claims management Again, Dearborn National Disability Claims Management Philosophy is to get people back to work quickly. The following services help achieve that goal. Employees can begin the claim process telephonically eliminating the need for paper. Dearborn National’s in-house claim experts intervene early to help employees get back to work quickly. When both products are purchased through Dearborn National there is no time lost in the move between Short-term Disability and Long-term Disability. For example: No additional claim form is needed. The same team manages both the Short-term Disability and Long-term Disability claims. Claimants experience no gap in benefit payments. They can get their benefits through Direct Deposit. The comprehensive return-to-work programs allow employees to return to work with their own employer or rehabilitate into another occupation. Dearborn has in-house Social Security experts who will assist employees with obtaining Social Security benefits. Now let’s talk about the SBAM Advantage! Information Valid as of 04/13/2016

31 Group Specialty Products: Expanding Your Product PortfolioSBAM ADVANTAGE Dearborn National Groups Match the group’s current Schedule of Benefits within parameters DN standard policy provisions will apply Match current commission scale Rate Guarantee - Rates guaranteed through June 30, 2019 Client in-force discount strategy Dearborn National Groups This strategy allows your customers who have health through the Blues sto ave money on their existing Life and Disability coverages. This only applies to groups with 10 through 100 eligible lives. Information Valid as of 04/13/2016

32 Group Specialty Products: Expanding Your Product PortfolioSBAM ADVANTAGE Dearborn National Groups Rate reductions (subject to plan design parameters) Basic Life 15% reduction to current employer-paid Life rates when sold with Supplemental Life plans that have 25% participation (Match existing Supplemental Life, Dependent Life and AD&D rates) STD or VSTD Match current STD or VSTD rates LTD or VLTD Match current LTD or VLTD rates Client in-force discount strategy Dearborn National Groups Read the slide. Now lets discuss LifeSecure Benefits. Why offer these coverages? See flier for more details. Information Valid as of 04/13/2016

33 Why offer voluntary LifeSecure Insurance Products?Three-quarters of workers state that the benefits package an employer offers prospective workers is extremely or very important in their decision to accept or reject a job. (EBRI, Views on the Value of Voluntary Workplace Benefits: Findings from the 2015 Health and Voluntary Workplace Benefits Survey, 2015)

34 Why offer voluntary LifeSecure Insurance Products?Group Specialty Products: Expanding Your Product Portfolio Why offer voluntary LifeSecure Insurance Products? Attract and retain employees More benefit options to extend health benefits Employees will perceive and appreciate the broader benefit offering LifeSecure offers straight-forward plan designs Coverage for spouse & children available Automatic payroll deductions Individual policies are portable AND MOST IMPORTANTLY – CASH BENEFITS (up to each employee’s elected benefit amounts) Why offer Voluntary LifeSEcure Products? And voluntary coverages will help you attract and retain employees. By adding these plans there are move options to extend health benefits 63% of employees said that offering voluntary benefits increase the value of their company’s overall benefits program. (prudential 2016)

35 Help Increase employee retention and satisfactionAs a result, offering voluntary benefits may increase the company’s employee retention while positively affecting their financial security. If a high priority is placed on retaining workers and keeping them happy, offering voluntary benefits is one way to help meet this goal.

36 Why offer voluntary LifeSecure Insurance Products?Group Specialty Products: Expanding Your Product Portfolio Why offer voluntary LifeSecure Insurance Products? We make enrollment easy. The Specialty Benefits team will: Provide customized pre-enrollment communications for employers to distribute to employees Lead employee meetings to educate on the benefits of the products or provide the agent with presentation material Provide employees with benefit and rate sheets Coordinate communication efforts throughout the open enrollment period Work with the agent and/or enrollers with employee applications. Your responsibility is to get the employer to agree to pre-enrollment communication including either an employee meeting or one-on-one employee meetings or both. Getting good participation in the employers offering hinges on the level of pre-enrollment education allowed. So here’s what we at Blue Cross will do to help support your enrollment.

37 Group Specialty Products: Expanding Your Product Portfolio LifeSecureAccident Insurance Group accident insurance Facilitator Note: Page 33 in the Participant Guide. Next, let’s look at LifeSecure’s products and key features. They offer excellent plan designs at competitive rates. Let’s start with Accident Insurance. LifeSecure Information Valid as of 04/13/2016

38 Accident Insurance Accidents happen... have you heard? • 1 out of 8 Americans each year seeks medical care due to injuries.1 • About 88% of accidents are non-traffic related.1 • Falls are the leading cause of accidental injuries among Americans in almost every age group.1 • 90% of young athletes said they have been injured while playing a sport.2 1 National Safety Council, Injury Facts, 2016 Edition 2 Safe Kids Worldwide, Changing the Culture of Youth Sports, August 2014

39 LIFESECURE ACCIDENT INSURANCEGroup Specialty Products: Expanding Your Product Portfolio LIFESECURE ACCIDENT INSURANCE Product Features Provides cash benefits for medical expenses resulting from qualified accidental injuries for covered services, taking into account adjustments negotiated between the health insurer and providers. 24/7 coverage Pays in addition to any other insurance in force taking into account negotiated between the health insurer and providers LifeSecure group accident insurance ( 75 seconds) Flexible Product Features LifeSecure’s Group Accident Insurance provides benefits for qualified medical and recovery expenses resulting from an accidental injury such as Slip and falls, sports injuries and even car accidents. And accidents do happen. On average an unintentional disabling injury occurs every second (Injury Facts 2010, National Safety Council). The minimum participation requirement is 10 eligible employees and it’s available for self, self and spouse, self and children, and self, spouse and children – just like medical. We’ll look at the features of this rider next. Information Valid as of 04/13/2016

40 LIFESECURE ACCIDENT INSURANCEGroup Specialty Products: Expanding Your Product Portfolio LIFESECURE ACCIDENT INSURANCE Product Features Two simple decisions: 1. Choose Annual Benefit Bank ($100 increments) Minimum $2,500 Maximum $15,000 for individuals Maximum $25,000 for couples/families 2. Annual deductible: $100, $250 or $500 Family deductible is twice the individual deductible amount Issue ages: Termination Age: 75 LifeSecure group accident insurance (1:15 minutes) Flexible Product Features There’s only two simple decisions. First, you select the Annual Benefit Bank amount. The Annual Benefit Bank represents the total dollar amount available for covered services rendered each calendar year. On January 1st of each year, the Annual Benefit Bank will restore to its full amount. Employers can select any amount within the range, in $100 increments. Next they select the annual deductible. The Annual Deductible represents the dollar amount that an individual must incur in covered services in a calendar year before benefits are payable under the policy. Employers can choose a $100, $250 or $500 deductible. The family deductible must be satisfied by two or more covered family members. Unlike a medical deductible which is paid out-of-pocket, this deductible reduces the benefit payout. The issue ages on spouse is through age 74 and children through age 25. The extended ages offer you the flexibility for greater group participation. Information Valid as of 04/13/2016

41 LIFESECURE ACCIDENT INSURANCEGroup Specialty Products: Expanding Your Product Portfolio LIFESECURE ACCIDENT INSURANCE Product Features Flexible plan designs to fit employee’s benefit budget Requires no coordination of benefits Cash benefits paid directly to employee with flexibility to use benefits the way they want Guaranteed Issue Composite rated for easy quoting LifeSecure Group Accident INSURANCE (40 seconds) The benefits from this plan pay in addition to other coverage, require no coordination of benefits and are paid directly to the employee. The no coordination of benefit feature is unique among the other accident plans.  Most competitors either coordinate benefits, which can be more confusing to customers, or pay from a schedule of benefits (a flat rate regardless of cost).  Because it’s guarantee issue, you don’t have to guess if the group qualifies. It has important plan details. We’ve also included an example of how this plan complements medical in your folder. In the folders you will receive after training, please refer to the LifeSecure Group Accident Agent Flier we’ve included in your folder and “Lisa’s” story will give you a good understanding of how the product works. It has important plan details. Information Valid as of 04/13/2016

42 Group Specialty Products: Expanding Your Product PortfolioKNOWLEDGE CHECK Jim has a LifeSecure Accident policy with a $10,000 Annual Benefit Bank and a $100 deductible. Jim gets hurt in a ski accident and incurs $8,000 in actual medical expenses. What would his benefit payout be? Knowledge check (1 minute) Facilitator Note: Page 37 in the Participant Guide. Jim's employer offers LifeSecure's Accident Product with a $10,000 annual benefit bank and a $100 deductible. Jim gets hurt in a ski accident and racks up $8,000 in qualified reimbursable medical expenses under his Accident Plan. What would his benefit payout be? Jim will have to pay the Doctor $100 first before getting any money. B.  Jim will get $7,900. Jim will have to pay the Doctor $100 first before getting any money. Jim will receive $7,900 in benefits. Information Valid as of 04/13/2016

43 Hospital Recovery InsuranceGroup Specialty Products: Expanding Your Product Portfolio Hospital Recovery Insurance GROUP hospital recovery insurance Let’s move on to Hospital Recovery Insurance offered by LifeSecure. LifeSecure Information Valid as of 04/13/2016

44 Hospital Facts • In 2012, the average length of a hospital stay was 4.5 days1  • In 2012, the average cost of a hospital stay in the U.S. for adults was nearly $13,0001  • The risk of being hospitalized almost doubles at age 65 2  • In 2016, 83% of covered workers faced a health insurance deductible, with average single deductibles increasing by almost $500 since  • The average length of a hospital stay has declined since 1 Agency for Healthcare Research and Quality, H-CUP Statistical Brief #180, October 2014 2 National Center for Health Statistics. Health, United States, 2015: With Special Feature on Racial and Ethnic Disparities. Hyattsville, MD. 2016 3 The Kaiser Family Foundation and HRET, Employer Health Benefits Annual Survey, 2016 4 OECD, Health Statistics 2015

45 Lifesecure Hospital Recovery InsuranceGroup Specialty Products: Expanding Your Product Portfolio Lifesecure Hospital Recovery Insurance Product Features Affordable plan that complements health insurance protection by paying cash benefits upon discharge from the hospital. Daily Benefit Amount (DBA) of $100–$900 in $10 increments. Annual Benefit Bank equal to DBA X 30 days Issue ages: 18 to Termination age: 75 LIFESECURE GROUP HOSPITAL RECOVERY INSURANCE (1:30 minutes) These days our customers are being released from the hospital “quicker & sicker” and need more recovery time at home. This means more expenses. Hospital Recovery pays the employee a cash benefit upon discharge of the hospital if the employee was admitted for at least one day and this benefit can assist your customer in the recovery phase following a hospital stay. There’s only one easy decision to make. Your employer can choose a daily benefit amount of $200-$900 in $10 increments. This represents the amount payable upon discharge for each day the insured person is hospitalized. There is a 25% benefit reduction at ages 75+ when the advanced issue age option is chosen. The Annual Benefit Bank represents the total dollar amount available in a calendar year (per covered family member). Thirty days is the maximum number of hospital days covered per calendar year per covered family member. This plan also requires a minimum of 10 eligible lives. It’s also available Self; Self and spouse; Self and children; Self, spouse and children. Information Valid as of 04/13/2016

46 Lifesecure Hospital Recovery InsuranceGroup Specialty Products: Expanding Your Product Portfolio Lifesecure Hospital Recovery Insurance Product Features Flexible plan designs fit employee’s benefit budget Requires no coordination of benefits Cash benefits paid directly to the employee up to the elected Benefit Bank Amount Flexibility to use benefits the way they want LifeSecure group hospital recovery insurance (45 seconds) Whether you or a covered family member needs rehabilitative services or assistance around the house, this plan provides benefits to help pay for the services and resources you want. The flexible plan design can fit almost any employer’s budget. Offering it as voluntary is a great option to introduce the product to employers. Cash benefits can be used to assist in the recovery phase following an inpatient hospital stay. Flexibility to spend reimbursement the way they want Home care assistance Rehabilitative services Medical deductibles, co-pays or co-insurance Child care Housekeeping or yard help Information Valid as of 04/13/2016

47 Lifesecure Hospital Recovery InsuranceGroup Specialty Products: Expanding Your Product Portfolio Lifesecure Hospital Recovery Insurance Optional Riders Emergency Room and Ambulance Benefit Major Diagnostic Exam Benefit: CT scan, MRI or EEG Rehabilitation Facility Benefit LifeSecure group hospital recovery insurance (1 minute) Enhanced Options Optional benefits pay in addition to the Hospital Daily Benefit Amount and are available per covered family member. Emergency Room and Ambulance Benefit: Emergency room visit (one per calendar year): $300 Ambulance services (one per calendar year): Ground transportation: $150; or Airport transportation: $500 Major Diagnostic Exam Benefit (one per calendar year). $500 for a major diagnostic exam (such as CT scan, MRI or EEG). Rehabilitation Facility Benefit: $100 per day rehabilitation facility benefit (up to 15 days per calendar year) immediately following a hospitalization. Please refer to the LifeSecure Group Hospital Recovery Agent Flier we’ve included in your folder. It has important plan details. We’ve also included an example of how this plan complements medical in your folder. Please refer to the “Mike” story. It really gives you a good understanding of how the product works. Information Valid as of 04/13/2016

48 Selling OpportunitiesGroup Specialty Products: Expanding Your Product Portfolio Selling Opportunities SELLING OPPORTUNITIES Facilitator Note: Page 53 in the Participant Guide. So far, we have discussed the flexible product features and their enhanced benefits. Now, let’s discuss the value they bring to your customers and employees. In this section, we will review an example of how to offer a full portfolio of ancillary products including LifeSecure and Dearborn National. Then, we will focus on identifying target customers and communicating value propositions. Information Valid as of 04/13/2016

49 Group Specialty Products: Expanding Your Product PortfolioTARGET GROUPS Target Group Characteristics Problem (s) Solution (s) Employer Group A Offers medical, Life, STD, and LTD as employer compensation package. Group is looking to attract top talent. LifeSecure’s Hospital Recovery & Accident Dearborn National’s Life, STD & LTD Employer Group B Group’s medical plan has a high deductible. Most of the employees are middle income level and a serious medical event could really derail them. Employees are concerned about deductible and unexpected health expenses. They have complained to HR about rising deductibles. Employer Group C 75 employees and offers Blue medical with Life and STD, LTD through another carrier. They are concerned about their overall benefit expense budget rising. Target Group Characteristics Problem (s) Employer Group A Offers medical, Life, STD, and LTD as employer compensation package. Group is looking to attract top talent. Employer Group B Group’s medical plan has a high deductible. Most of the employees are middle income level and a serious medical event could really derail them. Employees are concerned about deductible and unexpected health expenses. They have complained to HR about rising deductibles. Employer Group C 75 employees and offers Blue medical with Life and STD, LTD through another carrier. They are concerned about their overall benefit expense budget rising. TARGET GROUPS : Example 2 For Group A, adding LifeSecure's HR & Accident using the savings on and Dearborn National’s Life, STD & LTD can offer valuable protection against the unexpected. Since the technology company has younger active employees, they would find the Accident Insurance valuable. For Group B, adding Hospital Recovery and Accident can offer valuable protection against health related surprises. The cash benefits can help pay for out-of-pocket medical expenses such as deductibles and co-pays. If it’s offered as voluntary, there is no cost to the employer. Group C can take advantage of Dearborn National’s In-force discount strategy. They can offer the same plan design they currently have, save money on their Life and Short-term Disability rates and you as the agent would make the same commission you do with the existing carrier. Information Valid as of 04/13/2016

50 Commissions And BonusesGroup Specialty Products: Expanding Your Product Portfolio Commissions And Bonuses COMMISSIONS Facilitator Note: Page 49 in the Participant Guide. Managing Agent’s will deliver this lesson. Now, let’s talk about commissions and bonuses. Information Valid as of 04/13/2016

51 SBAM SPECIALTY COMMISSION SCHEDULEGroup Specialty Products: Expanding Your Product Portfolio SBAM SPECIALTY COMMISSION SCHEDULE Dearborn National Employer paid and voluntary Level 15% LifeSecure Individual Voluntary – (Multi-life) Heaped – 45% 1st year, 10% years 2-5, 2% life Information Valid as of 04/13/2016

52 DEARBORN NATIONAL BONUS SCHEDULEGroup Specialty Products: Expanding Your Product Portfolio DEARBORN NATIONAL BONUS SCHEDULE DEARBORN NATIONAL COMMISSION SCHEDULE On Page 50 in your Participant Guide is Dearborn National’s standard commission schedule. Please notice that voluntary plan commissions have a commission at a flat 15% and the grid demonstrates the Commission Schedule for Basic Life and Basic Life with STD & LTD and Critical Illness. If you would like something different, like a flat 10% or 20%, they will need to know at the time of quoting. The schedule is included in your folder. Information Valid as of 04/13/2016

53 DEARBORN NATIONAL BONUS SCHEDULEGroup Specialty Products: Expanding Your Product Portfolio DEARBORN NATIONAL BONUS SCHEDULE DEARBORN NATIONAL COMMISSION SCHEDULE On Page 50 in your Participant Guide is Dearborn National’s standard commission schedule. Please notice that voluntary plan commissions have a commission at a flat 15% and the grid demonstrates the Commission Schedule for Basic Life and Basic Life with STD & LTD and Critical Illness. If you would like something different, like a flat 10% or 20%, they will need to know at the time of quoting. Information Valid as of 04/13/2016

54 DEARBORN NATIONAL’S 2017 sbam Broker Bonus ProgramGroup Specialty Products: Expanding Your Product Portfolio DEARBORN NATIONAL’S sbam Broker Bonus Program Popular features from Broker Bonus Program: Only 10 lines of coverage and a total of $50,000 premium to qualify Voluntary lines will continue to count 2-for-1 5% bonus with only $150,000 in new premium 1% “case count” bonus if 8 new qualifying cases are sold—allowing for a potential 6% to be earned on new business If a producer qualifies for the new business and persistency bonus, he or she can earn up to 7%* for persistency! *graded scale Dearborn National’s industry-leading 2016 broker bonus program Annually, Dearborn National looks at competitors’ bonus programs and makes modifications to offer financially competitive bonus programs. They’ve just launched a new Broker Bonus Program with an industry-leading approach. This plan is for groups with 10 or more insured lives. For New Business: The maximum you can earn if you have $150,000+ in annualized premium, 10 qualifying lines sold and 8 or more new cases sold is 6.0%. However, you can also qualify by meeting the New Annual Premium of $500,000 and 2 new cases (without the line count). This would get you a 2% Annual Bonus. For Persistency (or, retention): Brokers can qualify if all of the following is true… (1) Broker has qualified for a New Business bonus (2) Broker has at least 10 in-force employer groups prior to the Current Plan Year and those groups have a total in-force premium of at least $100,00 (3) Persistency rate of at least 84% If a broker qualifies based on the above criteria, he or she has a chance to earn up to a 7%* bonus on each renewed group. Most carriers do not provide persistency bonuses. *95% persistency rate is needed for 7%. Payout scales are graded based on premium. Information Valid as of 04/13/2016

55 LIFESECURE BONUS SCHEDULEGroup Specialty Products: Expanding Your Product Portfolio LIFESECURE BONUS SCHEDULE Information Valid as of 04/13/2016

56 Lifesecure cash bonus

57 SBAM referral bonuses

58 SBAM Membership Companies enrolling in the sponsored Dearborn National or LifeSecure coverage must join SBAM as a Basic Member. Dues are $99 per year with the option for the agent to waive their referral bonus and cover the cost of their customer’s first year dues. Gives their customer access to an array of member programs and services above and beyond insurance.

59 Exclusive Consolidated Billing & Enrollment ServicesSBAM is the only place to get an employer paid and voluntary benefits portfolio with the administrative ease of a consolidated bill. SBAM’s monthly invoice includes all sponsored insurance services: Blue Cross, Blue Care Network, Dearborn National, LifeSecure, COBRA administration, Section 125 Plan, FSA HSA / HRA administration.

60 Group Specialty Products: Expanding Your Product PortfolioAppointment Process APPOINTMENT PROCESS Facilitator Note: Page 57 in the Participant Guide. Now, I’ll tell you about the appointment process for Dearborn National and LifeSecure. Information Valid as of 04/13/2016

61 DEARBORN NATIONAL APPOINTMENTSGroup Specialty Products: Expanding Your Product Portfolio DEARBORN NATIONAL APPOINTMENTS Agents Online Appointment with Dearborn National: Register for Producers Corner: On-line commission information AGENTS You can become appointed with Dearborn National by using the online system at The online appointment system will provide you with a response back in hours and there is an overview of how to do this in your folder. You will receive an ID in 24 hours which will allow you to register for Producer’s Corner. Once you have registered for Producer’s Corner you can access your commission statements online along with other valuable resources. Information Valid as of 04/13/2016

62 LIFESECURE APPOINTMENTSGroup Specialty Products: Expanding Your Product Portfolio LIFESECURE APPOINTMENTS Agents Contact your Specialty Support Team for Assistance: Action Benefits Fax: Grotenhuis Fax:  LIFESECURE APPOINTMENTS When you receive your folder, the Agent and Agency appointment paperwork is included. Please send the completed paperwork to your Specialty Support Team for Assistance or contact them if you need assistance. Information Valid as of 04/13/2016

63 Group Specialty Products: Expanding Your Product PortfolioWrap-up WRAP-UP Facilitator Note: Page 60in the Participant Guide. We have come to the end of our training session. Let’s review what you have learned. Information Valid as of 04/13/2016

64 Group Specialty Products: Expanding Your Product PortfolioWRAP-UP SBAM’s Specialty Business now includes Dearborn National and LifeSecure products. Dearborn products protect finances and provide for the future. LifeSecure products extend health coverage Commissions are competitive SBAM Advantage for selling with Blue medical. Selling opportunities exist even when an employer group already has ancillary coverage. The Specialty Support Teams are a resource for appointments. WRAP-UP Click Today, you learned about Blue’s group ancillary arrangement with Dearborn National and LifeSecure. You learned that the products help to protect a person’s finances, against the unexpected and future. The product enhancements are differentiators in the market. You learned about the commissions you can earn selling both products AND the SBAM Advantage available to groups with Blue Medical. We discussed selling opportunities as scenarios that match a groups needs with 1 or more ancillary products. And, you have the information you need to get appointed to sell Dearborn National and LifeSecure products. If you have any questions about Dearborn National or LifeSecufre products, please contact your Specialty Support Team at Grotenhuis & Action Benefits. Information Valid as of 04/13/2016

65 Group Specialty Products: Expanding Your Product PortfolioWRAP-UP Products and services marketed under the Dearborn National® brand and the star logo are underwritten and/or provided by Dearborn National® Life Insurance Company (Downers Grove, IL) and certain of its affiliates. Dearborn National® Life Insurance Company is a separate company that does not provide Blue Cross and Blue Shield of Michigan products or services. Dearborn National® Life Insurance Company is solely responsible for the life and disability products described. LifeSecure and the interlocking logo are trademarks of LifeSecure Insurance Company — Brighton, MI. LifeSecure is an independent company that does not provide Blue Cross Blue Shield of Michigan products or services. LifeSecure underwrites and is solely responsible for the Personal Accident Insurance and Hospital Recovery Insurance coverage. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. WRAP-UP Click Today, you learned about Blue’s group ancillary arrangement with Dearborn National and LifeSecure. You learned that the products help to protect a person’s finances, against the unexpected and future. The product enhancements are differentiators in the market. You learned about the commissions you can earn selling both products AND the In-force Discount Strategy available with Blue Medical. We discussed selling opportunities as scenarios that match a groups needs with 1 or more ancillary products. And, you have the information you need to get appointed to sell Dearborn National and LifeSecure products. If you have any questions about Dearborn National products, please contact your Specialty Support Team at Grotenhuis & Action Benefits. Information Valid as of 04/13/2016

66 Group Specialty Products: Expanding Your Product PortfolioThank You! Additional Information available online at: THANK YOU I thank you all for your time. Information Valid as of 04/13/2016