United American First United American 2011 Producer Opportunity

1. United AmericanFirst United American 2011 Producer Opportunity Senior Products, Health, Life & Annuity “OUTSTANDING LEAD CONTRACT” TEXAS

2. Focus of this meeting • Help you transition more of your business into Senior Market. The Senior Market and Medicare Supplements offer the MOST growth opportunity in the most stable market! • New Leads Systems (Lead Contract) • 2,000 Piece Lead Order (Entered into monthly drawing)* • Medicare Advantage – Cancellations! • Persistency - $ Your Profits $ • Overview of our Supplemental Health, Life & Annuity Products** • Outstanding opportunity for the Producer and the Agency* Drawing held monthly; must be licensed with United American to qualify**Product availability varies by state

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4. Charles R. Mankamyer Senior Vice-President United American – General Agency • Past President & CEO • American Life & Health Group, Inc. • Palm Beach County, Florida • Contracted with United American as a General Agent in 1979 • GA with Career Agents in Florida • GA with Brokers/Agencies in all 50 states • 469.525.4764 • crmankamyer@torchmarkcorp.com

5. Ryan Sykes DirectorEast Coast Region “I have been in the business for almost 10 years and started as an agent going door to door just like most of you. I travel around the East Coast holding training and recruiting Seminars. “I am here to help everyone in the East Coast but I work closely with GAs that want to build productive teams. “In my opinion, the most exciting part about what we offer to Agents are the Lifetime (Level-MedSup) Renewals on all products.” • 518.764.2286 • rcsykes@torchmarkcorp.com

6. Introduction to Company History • United American opened its doors in 1947 to provide life, supplemental health, and accident coverage to individuals. • Even before Medicare was signed into law in 1966, the Company made the decision to focus its attention on the individual health market with an emphasis on Seniors. This foresight paid off and we gained recognition as one of the nation's leading writers of individual Medicare Supplements*. • In the state of New York, our individual insurance business is conducted through United American's subsidiary, First United American Life Insurance Company. An independent Agent system is employed to deliver Annuity or Medicare Supplement coverages to customers living in this state. * NAIC 2009 Medicare Supplement Insurance Experience Report, May 2010

7. UA / First UA Financial Strength Ratings United American First United American A+ (Superior) Financial Strength Rating from A.M. Best Company for more than 20 consecutive years(as of 6/10) • A+ (Superior) Financial Strength Rating from A.M. Best Company for more than 30 consecutive years (as of 6/10) • AA- “Very Strong” Financial Strength Rating from Standard & Poor’s (as of 5/10) Safety for your clients, you and your family!

8. Service Performance Record Our 2009 Service Performance Record speaks for itself

9. What UA Offers Our Producers & Policyholders, today! Supplemental Health Plans Hospital Indemnity (all ages) First Cash Cancer (ages 0-69; 64 in CA), HealthGuard Critical Illness (ages 18-69; 64 in CA), Accident (ages 0-63).Cash Plans - $10K, $20K, $30K, $40K & $50K • High Commissions and Renewals paid for the life of the policy. • Yes/No Applications

10. What UA Offers Our Producers & Policyholders, today! Life InsuranceFundamental Life Series ILife insurance policies from $1,000 - $20,000 10 Year Renewable Term (ages 18-80), Whole Life (ages 0-80) and 21 Pay Increasing Benefit (ages 0-72) Fundamental Life Series IILife insurance policies from $25,000 - $500,000 10 Year Renewable Term (ages 0-60), 10 Year Term To Annual Renewable Term (ages 20-70), 20 Year Term to Annual Renewable Term (ages 20-60) and Whole Life (ages 0-80)

11. What UA Offers Our Producers & Policyholders, today! Annuities Lifestyle Single Premium Minimum 3% Interest (7 year annuity) Issue Ages 0-80 Minimum Deposit $5,000 Maximum Deposit $20,000 Withdrawal Charges Eliminated after Year 6 Hospitalization and Nursing Home Waiver of Withdrawal* * Available in most states

12. Medicare Facts Traditional Medicare Supplements Opportunity- # of Senior Americans aging into Medicare In the next 5 years, 11.5 million Americans will enter the Medicare Supplement Marketplace

13. Medicare Facts • In the next 10 years, 21.5 million American Seniors will enter the Medicare Supplement Marketplace • What portion of this outstanding business opportunity will you convert into your personal financial security?

14. UA’s 2011 Medicare Supplements UA Markets 10 of the 11 Standardized Plans (A, B, C, D, F, HDF, G, K, L, and N)  High Deductible Plan F benefits begin after out-of-pocket expenses exceed calendar year deductible ($2,000 in 2011) * Copay = $20/office visit; up to $50/ER visit  Once annual limit is reached the plan pays 100% of the Medicare copayments, coinsurance, and deductibles for the rest of the calendar year.

15. History of HDF • Designed to address Seniors’ concerns of higher premiums • Great choice for seniors who are relatively healthy and can afford to pay out-of-pocket deductible • Per the Centers for Medicare & Medicaid Services(CMS), the annual HDF deductible may or may not increase.Adjustments in the HDF annualdeductible amount is subject to the release of theConsumer Price Index (CPI) which generally occursinmid-to-late September of each year. • 2011 deductible ($2,000) did not change from 2009 and 2010 • One rate increase nationwide over the last 5 years

16. Cost of Insurance How can you save me premium dollars? Challenge: • Most Americans think they pay too much for nearly any form of insurance they carry Solution: • Help save clients premium dollars

17. Premium Savings Q: How do people save money on any kind of insurance (health, car, homeowners)? A: They raise their deductible. And SAVE $$$$$$$$$$$$$$$$$$

18. Premium Savings • Some homeowners are raising their deductibles from $500 to $1,000 or $2,000 in order to reduce their premium. • Others increase deductible amount to a percentage of their home’s total replacement value • Savvy consumers ask why they are paying higher premiums for claims they may never have. This is the premiere of HDF.

19. HDF Claim Example Mary has an HDF policy What happens when she has a Part B claim?

20. Mary’s Part B Claim with HDF • Medicare pays 80% of Medicare-approved charges • Mary pays 20% (until her deductible is reached; think of the deductible like a copay/coinsurance) plus any excess charges • When Mary reaches her $2,000 annual deductible, the HDF policy begins paying the 20% plus any excess charges

21. Cost-Sharing Concept * Policyholder must meet HDF annual deductible ($2,000 in 2011) before benefits begin, and pay their HDF premiums.

22. Even with a $2,000 deductible, HDF makes sense for many Seniors

23. Premium Savings Example Agents can help Seniors understand how HDF may be suitable coverage for their health needs AND budget • * UA ProCare TX Area 3 rates, 65-yr-old female, nonsmoker • Area 1: Plan F $194, Plan HDF $61 • Area 2: Plan F $160, Plan HDF $50 **Example assumes no rate increases on either plan; policyholder must meet HDF annual deductible ($2,000 in 2011) before benefits begin For illustrative purposes only

24. Premium Savings Example • In the previous slide, the example assumed HDF premium savings of $12,480 in Texas over a 10-year period. • Example assumes no rate increases on either plan; however based on Company experience, Plan F rate increases occur more frequently than on HDF, which averaged only one rate increase nationwide over the last 5 years. • Do you know of any other Medicare Supplement that has had only one rate increase in the last 5 years?

25. Claims Data • 80% of United American’s Medicare Supplement population up to age 68 has annual claims above Original Medicare of $534 on average • 78% of our Company’s Medicare Supplement population up to age 72, has annual claims above Original Medicare of $621 or less on average • 71% of our Company’s Medicare Supplement population age 73 or older, has annual claims above Original Medicare of $707 or less on average • Source: United American 2009 Claims data)

26. Economical Choice HDF may be most economical choice for Seniors, even if they have to meet the annual deductible an unexpected, extraordinarily high number of times Do the math, do what is best for your client! Additional sales and referrals will follow!

27. It’s up to youto show Seniors the premium savings potential with HDF

28. Saving Premium Over Time Example assumes no rate increase and no Medical High Deductible increase.

29. Premium Savings How could Mary use money leftover from her premium savings?

30. Three Great Options For Annual Premium Savings • Life Insurance • Reserve Fund Annuity • Lifestyle Annuity

31. HDF and Reserve Fund Annuity (RFA) • UA offers a unique product – Reserve Fund Annuity - that assists Med-Supp policyholders with paying HDF calendar-year deductible or copayment • RFA’s interest rate is guaranteed at 3% - higher than some current savings accounts at many banks • No charge to open, no lock-in time for deposits, no surrender charges, and no commission loads • HDF frees unspent premium so customers can buy additional coverage - this generates more commissions for you!

32. Reserve Fund Annuity • Funds in an RFA can be used to pay for calendar year deductible or copayments associated with ProCare Medicare Supplement Plans A, B, D, HDF, G, K or L  • With Plan A: Medicare Part A hospital inpatient deductible, Medicare Part B annual deductible, and Medicare Part B excess charges for Medicare approved services; • With Plans B & D: Medicare Part B deductible and Medicare Part B excess charges for Medicare approved services; • With Plan G: Medicare Part B deductible. • With HDF: Calendar year deductible ($2,000 in 2011) • With K & L: Out of Pocket limit ($4,640 & $2,320 respectively in 2011)

33. Three Interest Rate Examples • RFA Example • Interest-bearing Checking Account Example • Savings Account Example Which option is best for your customer?

34. Three Interest Rate Examples * Accumulating monthly (compounded annual yield)

35. What UA Offers Our Producers & Policyholders, today! Annuities Lifestyle Single Premium Minimum 3% Interest Issue Ages 0-80 Minimum Deposit $5,000 Maximum Deposit $20,000 Withdrawal Charges Eliminated after Year 6 Hospitalization and Nursing Home Waiver of Withdrawal available in most states

36. Continuing to Improve Seniors’ Options Life InsuranceFundamental Life Series ILife insurance policies from $1,000 - $20,000 10 Year Renewable Term (ages 18-80), Whole Life (ages 0-80) and 21 Pay Increasing Benefit (ages 0-72) Fundamental Life Series IILife insurance policies from $25,000 - $500,000 10 Year Renewable Term (ages 0-60), 10 Year Term To Annual Renewable Term (ages 20-70), 20 Year Term to Annual Renewable Term (ages 20-60) and Whole Life (ages 0-80)

37. Life Expectancy/Renewals-Total Income Other companies dramatically reduce or eliminate long-term renewals to Agents after first five renewal years, touting ‘short average life of their business’ as the reason. We base our decision to continue paying long-term renewals on solid research. • Average 65-year-old man can expect to live to age 84 • Average 65-year-old woman can expect to live to age 87 • Some couples will have at least one partner live to age 90 or 95 That’s potentially 25-30 years of renewal commissions!! Limited to 6th policy year on Guaranteed Issue Medicare Advantage replacements; not applicable in WA.

38. UA Level Renewals The key to Producers’ long-term financial security!!! IT IS TIME TO ADD YOU & YOUR FAMILY INTO YOUR BUSINESS DECISIONS For illustrative purposes only.

39. UA Medicare Supplement Level Renewals If you earned $50,000 in 1st year commissions and level renewals after 10 consecutive years your annual income would be $500,000 = $41,666 Monthly-% persistency (death & lapses) Vested from first dollar Paid for the life of the policy Willable

40. Think of your Client … Service … After the Sale! • Sold Medicare Supplement at Age 65 – client in good health • Age 75 – client no longer in good health and needs Agent’s personal service … We appreciate our Agents and clients. We pay renewals to service the client as long as they are our policyholders!!!

41. Medicare Advantage Plans – Additional Opportunity

42. Medicare Advantage Plans • In 2010, more than 636,000 seniors were canceled by their Medicare Advantage provider • Today there are almost 700,000 canceled seniors from MA plans for 2011! • All UA Medicare Supplements are “Guaranteed Renewable for Life”, UA can not cancel the senior! • Medicare Advantage Plans can change the Senior’s benefits

43. Servicing MA Disenrollees • Seniors losing Medicare Advantage (MA) coverage are used to lower premiums and/or cost-sharing/copays. They may be looking for: • A Medicare Supplement plan with affordable rate • Or, a new Medicare Advantage plan with affordable rate • You can help Seniors find their most suitable, affordable Med-Supp coverage • Canceled: 636,000 seniors canceled in 2009. Almost 700,000 seniors canceled in 2010 as of 10/10!

44. Medicare Advantage Plans If the Senior is NOT CANCELLED • Some changes in 2010 MA Plans: • Higher Deductibles / Copays • Increased Out-of-Pocket Costs • Fewer Doctors / Hospitals • Higher Cost to the Senior • More Changes to Come in 2011: • Government starts Defunding • More MA Cancellations • Higher Deductibles / Copays More Individuals Moving to Medicare Supplements

45. Medicare Advantage Plans 2009 vs. 2010 Benefit Reductions More changes for 2011 … UP TO $10,000 Out-of-Pocket Costs to Seniors! • Fewer Doctors/Hospitals • Higher cost to the senior! More Individuals Moving to Medicare Supplements Source: Medicare.gov

46. Medicare Advantage Plans Medicare Advantage – Good Health vs. Health Conditions Up to 60% Increase! More changes for 2011! More Individuals Moving to Medicare Supplements Source: Medicare.gov

47. 692,442Medicare Advantage Cancellations (as of 10/31/10) Western 108,839 Central 151,333 Eastern 432,270 New Hampshire 7,844 Maine 10,960 Vermont 830 Washington 17,866 Massachusetts 31,637 North Dakota 493 Montana 386 Minnesota 21,908 Rhode Island 1,005 Oregon 9,880 Wisconsin 7,129 New York 24,685 South Dakota 406 Idaho 3,147 Michigan 63,130 Connecticut 6,402 Wyoming 492 Pennsylvania 37,341 Iowa 510 Ohio 23,858 California 51,783 Nebraska 1,145 New Jersey 20,700 Nevada 2,746 Illinois 11,430 Utah 3,864 Indiana 8,634 Colorado 7,081 West Virginia 4,572 Delaware 1,091 Virginia 34,221 Kansas 537 Kentucky 10,261 Missouri 5,848 Maryland 5,881 North Carolina 45,871 Tennessee 12,362 Oklahoma 3,302 Arizona 7,974 New Mexico 2,382 Arkansas 2,125 South Carolina 10,6664 District of Columbia 190 Georgia 88,682 Mississippi 2,310 Alabama 16,146 Texas 18,628 Louisiana 3,798 Alaska 98 Hawaii 1,140 Florida 37,067

48. Learn More at CMS About Medicare Advantage! • http://go.usa.gov/CL3 and click on ‘Downloads’ • This site is an excellent overall source of information about Medicare Advantage enrollments. • The more you know, the more you can help your customers make the right decision.

49. ProCare Plan HDF Monthly Premium(Central Region) (Female, Non-Smoker, Age 65 Examples) Arkansas $60Iowa $37 Illinois $38Kansas $39Louisiana $40 pendingMichigan $36Missouri $55 pendingMississippi $36 pending approvalNorth Dakota $38Nebraska $42 pending approvalOklahoma $36South Dakota $38Texas $36 pending approval Not available in: HI, MA, MN, NH, NJ, VT, WA or WI Rates in some states are pending state approval therefore subject to change.

50. Never Run Out of Leads Again!