NORTHEASTERN REGION

1. NORTHEASTERN REGION NORTHEASTREG-PA For Agent Training use only; not approved for use in sales presentations. UAI1778 0511

2. NORTHEASTERN REGION 2000 MONTHLY LEAD DRAWING PENNSYLVANIA WORKSHOP 2000 Contract Opportunity CE credit voucher NORTHEASTREG-PA For Agent Training use only; not approved for use in sales presentations. UAI1778 0511

3. Ryan Sykes Regional Director  Northeast Region “I am located in upstate NY but I travel all over the Northeast running training seminars and helping GA’s build solid business plans.” “In my opinion, the most exciting part about what we offer GA’s are the LEADS as well as the Renewal’s.” 518.764.2286 rcsykes@torchmarkcorp.com

4. 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! • Understanding the need for Medicare Supplements • Special HDF Supplement- The thinking person’s policy • United American’s Competitive advantages • Leads, Leads and more leads • Overview of our Supplemental Health, Life & Annuity Products • Outstanding opportunity for the Producer and the Agency

5. 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. * * NAIC 2009 Medicare Supplement Insurance Experience Report, May 2010

6. UA Financial Strength Ratings United American AA- “Very Strong” Financial Strength Rating from Standard & Poor’s (as of 5/10) • A+ (Superior) Financial Strength Rating from A.M. Best Company for more than 30 consecutive years (as of 6/10)

7. UA Financial Strength Ratings Strength and Stability for your clients, you and your family!

8. Company Expenses Average of our top 5 Life & Supplement Health Insurance Competitors Torchmark’s Expenses 5.8 % 11.78 % Source: Company Research Source: TMK year-end report for year ending 2010

9. Service Performance Record Our 2010 Service Performance Record speaks for itself Do other companies supply you with this vital information? (United American company data)

10. What UA Offers Our Producers & Policyholders today! • High Commissions and Renewals paid for the life of the policy. • Yes/No Applications • Not available in: AL, CT, MA, MT, NJ, NY, ND, UT, VT, or WA

11. What UA Offers Our Producers & Policyholders today! • High Commissions and Renewals paid for the life of the policy. • Yes/No Applications • Not available in: CT, MA, MN, NJ, NY, or SD

12. What UA Offers Our Producers & Policyholders today! • High Commissions and Renewals paid for the life of the policy. • Yes/No Applications • Not available in: CT, KY, MA, MN, MT, NH, NJ, NY, or SD

13. What UA Offers Our Producers & Policyholders today! • High Commissions and Renewals paid for the life of the policy. • Yes/No Applications • Not available in: AL, CA, CT, FL, IN, NH, NJ, NY, OR, SD, TN, WA, or WV

14. What UA Offers Our Producers & Policyholders today! • Not available in: NJ or NY

15. Life Insurance Fundamental Life Series I Life insurance policies from $1,000 - $20,000 10-Year Renewable Term (ages 18-80) Whole Life (ages 0-80) 21-Pay Increasing Benefit (ages 0-72) Fundamental Life Series II Life 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) Whole Life (ages 0-80)

16. What UA Offers Our Producers & Policyholders today! • Not available in: CO or NY

17. Annuities Lifestyle Single Premium Issue Ages 0-80 Minimum 3% Interest Minimum Deposit $5,000 Maximum Deposit $20,000 Withdrawal Charges Eliminated after Year 6 Hospitalization and Nursing Home Waiver on Withdrawal available in most states

18. Medicare Facts Traditional Medicare Supplements Opportunity – Number of Senior Americans aging into Medicare In the next 4 years, 9.5 million Americans will enter the Medicare Supplement Marketplace Source: www.AgingStats.gov as of 2008

19. Medicare Facts In the next 10 years, 21.5 millionAmerican Seniors will enter the Medicare Supplement Marketplace

20. Medicare A/B Chart

21. Overview of 2011 Medicare Supplements UA & First 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.

22. UA Policies Issued in 2010 82.8 percent of our Medicare Supplement policies sold in 2010 were Plan F or Plan HDF Source: Company Statistics, as of 12/2010

23. Overview of 2011 Plan Benefits • Suitability for prospect most important factor in sale • Take time to determine which policy best fits their lifestyle and budget • When customer purchases the right policy for their needs, they keep it • As a result, your persistency climbs and residual income just keeps coming • Suitability and persistency go hand in hand

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

25. Marketing the HDF Plan • What is the difference between HDF and Plan F? • Cost of premium and annual deductible customer must pay before policy benefits take effect • Why sell HDF? • Chance to NOT pay for coverage that’s not needed • Under a traditional Medicare Supplement plan, customer generally pays higher premium that covers most of their Medicare-eligible expenses • Under HDF, customer pays for expenses incurred up to annual deductible, then coverage begins • Turning 65 prospects already familiar with higher deductible plans through exposure to employer-sponsored coverage

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

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

28. History of HDF • Designed to address Seniors’ concerns about 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 annual deductible amount is subject to the release of the Consumer Price Index (CPI), which generally occurs in mid-to-late September of each year. • 2011 deductible ($2,000) did not change from 2009 and 2010

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

30. Premium Savings Example Agents can help Seniors understand how HDF may be suitable coverage for their health needs AND budget * National Average, Age 65, Female, Nonsmoker ** Example assumes no rate increases on either plan; policyholder must meet HDF calendar-year deductible ($2,000 in 2011) before benefits begin For illustrative purposes only

31. Premium Savings Example Agents can help Seniors understand how HDF may be suitable coverage for their health needs AND budget Area 1 ZIP Prefix: 150-154, 189-194 Area 2 ZIP Prefix: 155-167 Area 3 ZIP Prefix: 168-188, 195-196 * UA ProCare, Pennsylvania Area 3, Age 65, Female, Nonsmoker – Effective 06-01-11 ** Example assumes no rate increases on either plan; policyholder must meet HDF calendar-year deductible ($2,000 in 2011) before benefits begin For illustrative purposes only

32. Premium Savings Example • In the previous slide, the example assumed HDF premium savings of $15,600 in Pennsylvania 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 increase nationwide over the last 5 years.

33. Plan Comparison Plan F Plan HDF Lower Premiums vs. Plan F Calendar-Year Deductible before benefits take effect ($2,000 in 2011) • Higher Premiums vs. Plan HDF • No Calendar-Year Deductible before benefits take effect

34. 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

35. Average Claim Cost 77.2% of the time, this is what a client will pay over a 10-year period $15,600 Savings over 10 years $6,121 Spent on claims $9,479 Net Saving over 10 years 77.2% of the time $948 Per year Average Savings Source: United American 2009 Claims data

36. Saving Premium Over Time Example assumes no rate increase and no increase in the HDF calendar-year deductible

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

38. Four Great Options for Annual Premium Savings $ 166 Plan F Monthly Premium High Deductible Plan F- $ 36 Monthly Premium $ 130 Monthly Premium Savings with High Deductible Plan F • Cancer Insurance • Hospital Indemnity Insurance • Life Insurance • Lifestyle Annuity

39. 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!

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

41. 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 Source: American Academy of Actuaries

42. Life Expectancy/Renewals - Total Income That’s potentially 25-30 years of renewal commissions!! If the business remains in force. Limited to 6th policy year on Guaranteed Issue Medicare Advantage replacements; not applicable in WA.

43. UA/First UA Level Renewals The key to Producers’ long-term financial security!!! For illustrative purposes only.

44. UA/First UA Level Renewals IT IS TIME TO ADD YOU AND YOUR FAMILY INTO YOUR BUSINESS DECISIONS

45. Level Renewals Example • Vested from first dollar • Paid for the life of the policy • Willable

46. 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 …

47. Think of your Client … We appreciate our Agents and clients. We pay renewals to service the client as long as they are our policyholders!!!

48. Commission Loan Advance DRAFT

49. Medicare Advantage Plans = Additional Opportunity

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