Graded Lifetime Extension Benefit Period* This contract is one of the few policies today to offer a "lifetime" benefit period. Our Graded Lifetime Extension Benefit Period (X45) is designed specifically to assist you in completing your retirement planning in the event you become disabled. Consider this: Your retirement savings will be accumulated during your working years-yet a total disability could force you to stop making contributions. This can be particularly devastating if you are disabled when you are young. On the other hand, the older you are when you become totally disabled, the more time your retirement savings will have had to grow. After age 65, the larger fund would reduce the amount of benefit needed from a disability income insurance policy.

Consider a policy that pays a $5,000 monthly benefit, with a graded lifetime (X45) extended benefit period. If you are totally disabled at or before age 45 and remain disabled to age 65, we will pay you $5,000 a month (100% of the total disability benefit) for the rest of your life, as long as you remain totally disabled.

If you are totally disabled at age 50 and remain so until age 65, under the same policy you would receive $5,000 a month till you reach age 65. After that, as long as you remain totally disabled, the lifetime benefit would be 75% of the monthly benefit for total disability, or $3,750 a month for life. This is because the amount of monthly benefit payable after age 65 is determined by your age at the time total disability began-it reduces 5% for each year beyond age 45 that your disability begins.

Cost of Living Adjustment Rider*

During an extended disability traditional fixed dollar benefits can't help you keep pace with inflation. This is why a Cost of Living Adjustment (COLA) Rider is an important benefit. The COLA rider annual adjustments to the monthly benefit begin after 12 months of disability and continue to age 65. The increases are tied to the Consumer Price Index (CPI-U) up to a maximum compounded annual rate of 3% or 6%, whichever you choose.

Most other DI companies also offer COLA riders. But some offer only fixed interest adjustments. Others offer only simple rather than compounded rates, and some actually impose a cap on increases prior to age 65. We, of course, compound annually and our rider adjusts benefits at the end of each 12 months of disability with no limit before age 65.

*This rider is not necessarily protection against increases in the cost of living.

COLA Increases Remain Upon Recovery

What happens to COLA increases when you recover? Any increases to the monthly benefit due to indexing remain as part of the policy's base benefit - at no additional premium until you reach age 65.* Other companies typically revert to the original benefit or allow you to buy up to the indexed benefit by paying additional premiums.

Future Increase Option Rider*

If you expect to have significant income growth you may need a Future Increase Option (FIO) Rider. It offers you the opportunity-each year until you reach age 55-to purchase additional coverage with-out providing evidence of medical insurability.

The amount of the Future Increase Option added to the base policy can be up to twice the base benefit plus all other in-force coverage with the carrier. Until you reach age 45 you can exercise the entire FIO amount on your option date if your income justifies it. Once you become 45, up to one-third of the FIO amount is available in any one year. Few other companies offer you such flexibility.

Automatic Increase Rider

Many individuals expect to receive regular increases in income over the years. The Automatic Increase Rider (AIR) is a convenient way to keep your coverage in line with your needs before you are disabled. It provides a 4% automatic increase in your monthly benefits each year for five years at attained age premiums. No applications, exams or blood tests are required. Increases are offered despite any changes in your health or occupation, and you may refuse an increase without forfeiting any scheduled remaining increases. Before you reach age 60 you may apply to extend the AIR for additional five-year periods.

Because compound interest is used to calculate increases, your total monthly benefits will have increased by 2 1.6% at the end of five years! AIR represents a convenient, flexible way for you to insure your increasing income - and insure against changes in your health or occupation - before you become disabled.

Residual Disability Benefits

Disability isn't always "total." You may suffer a partial (or residual) disability that limits your ability to work and results in decreased income - or an initial total disability may be followed by an extended period of residual disability. We offer a number of unique features that maximize your benefits under a variety of such scenarios.

Like most good policies, if you are residually disabled policies pay:

benefits proportionate to income loss, and
for the first six months' benefits, at least 50% of the total disability benefit.

However, most companies discontinue residual benefits when your income loss falls below 20%. We continue to pay residual benefits even if your income loss is less than 20% as long as the monthly benefit payable is at least $500.

Unemployment Premium Waiver Option Rider*

We also offer an Unemployment Premium Waiver Option Rider. Under this rider, we will waive your premiums if you become unemployed. To qualify for benefits under this rider you must receive unemployment compensation for at least 60 consecutive days. Your premiums will be waived for 12 months even if you return to work. You can only exercise this option once over the life of the policy; the rider itself is renewable to age 60 or until the date you exercise it. Not available in all States*

*This rider is not necessarily protection against increases in the cost of living.