M A R S H & M C L E N N A N C O M PA N I E S V O L U N TA R Y B E N E F I T S W E B C A S T

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1 H E A L T H W E A L T H C A R E E R M A R S H & M C L E N N A N C O M PA N I E S V O L U N TA R Y B E N E F I T S W E B C A S T OCTOBER 2015 Mercer Health & Benefits Administration LLC

2 V O L U N T A R Y B E N E F I T S VALUE OF VOLUNTARY BENEFITS Benefit choice Group discounts Payroll deduct Service support User-friendly platform Decision support tools PRODUCTS OFFERED: Choice Auto and Home insurance Personal Excess Liability Insurance Legal Assistance Plan Identity Theft Protection Long-Term Care Pet insurance Group Variable Universal Life Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 1

3 C H O I C E A U T O A N D H O M E I N S U R A N C E 1 Employees are automatically eligible to apply for policies with special discounts that may save you time and money. The Auto/Home CHOICE program is unique and designed just for employees like you, with expanded options and potential for greater savings. Competitive rates from America s most respected insurance companies: MetLife Auto & Home Travelers Liberty Mutual Insurance Safeco Insurance Note, specialty insurance is also available including coverage for such things as motorcycles, boats, RVs, vacations homes, and even Flood insurance 1 Rates and discounts vary geographically. Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 2

4 C H O I C E A U T O A N D H O M E I N S U R A N C E HOW EASY CAN I GET A QUOTE? As easily as picking up a phone or going online Monday Friday 8:00 a.m. to 8:00 p.m. EST Extended hours during open enrollment: October 26 November 13 Monday Friday: 8:00 a.m. to 10:00 p.m. EST Saturday: 8:00 a.m. to 2 p.m. EST Visit our secure online Quick Quote Center Apply or switch at any time Helpful tips Easy-to-understand explanations Side-by-side quote comparison for auto quotes Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 3

5 P E R S O N A L E X C E S S L I A B I L I T Y I N S U R A N C E Protection for you or a covered family member from lawsuits and damages beyond what is covered under your primary auto, home, renters, recreational vehicle, motorcycle, and watercraft insurance policies. Examples of situations where this coverage could potentially address: Slip and fall on your property Serious auto and boat accidents Swimming pool accidents CHUBB PERSONAL EXCESS LIABILITY INSURANCE PROVIDES LIABILITY COVERAGE FROM $1 MILLION TO $25 MILLION. Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 4

6 L E G A L A S S I S T A N C E P L A N People of all ages have the need for an attorney periodically throughout their lifetime. Real estate matters Name changes Creating a will Estate planning and trusts Retirement planning EXAMPLES OF COVERED SERVICES Advice and consultation Office consultation and telephone advice Consumer protection matters Debt matters Tax audits Document preparation Family law Personal injury Personal injury (25% network maximum) Real estate matters Will and estate matters Hyatt s Legal Assistance plan provides access to more than 13,000 experienced and affordable legal representation for you, your spouse/domestic partner, and dependents. Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 5

7 I D E N T I T Y T H E F T P R O T E C T I O N P R O G R A M Identity theft is America s fastest growing crime, where one new identity is stolen every three seconds. 1 Tax refunds Medical care and coverage Passport Driver's license numbers Social media sites InfoArmor detects fraud before any major damage is done by scanning data on wireless accounts, auto and mortgage loans, high risk transactions, and more. In addition to identity monitoring, PrivacyArmor incudes free tools such as: WalletArmor Digital identity report IdentityMD Solicitation reduction programs. 1 Javelin, 2013 Identity Fraud Report Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 6

8 L O N G - T E R M C A R E 1 Anyone could need long-term care at any time. An accident or broken bone could require months of recuperation at home. An illness or disease, such as Alzheimer's, might require ongoing care or supervision at home, in the community, or in a facility. Illness Accident Age Genworth s Long-Term Care can help pay services that could be required as a result of conditions such as: Broken or fractured bones Parkinson s disease Stroke Alzheimer s Other chronic conditions Care can be provided in different settings, including: Home Assisted living facilities Nursing homes 1 Long-Term Care insurance under this plan is not available to residents of Vermont Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 7

9 P E T I N S U R A N C E A policy from Veterinary Pet Insurance helps pay for your pet's treatments, surgeries, lab fees, routine care, and much more. Coverage for dogs, cats, birds and exotic pets Pays the veterinary costs if a pet becomes ill or is injured in an accident Dogs and cats from 6 weeks to 10 years of age are eligible for new enrollment Pets can be seen by any licensed veterinarian with no pre-approval required Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 8

10 GROUP VARIABLE UNIVERSAL LIFE FROM METLIFE Mercer Mercer Health Health && Benefits Benefits Administration Administration LLC LLC 9 Confidential Confidential and and Proprietary Proprietary Copyright Copyright Mercer Mercer LLC. LLC. All All rights rights reserved. reserved. 9

11 Understanding Your Opportunities Group Variable Universal Life (GVUL) L [exp0416][All States][DC,GU,MP,PR,VI]

12 Overview The benefits of your GVUL coverage Life Insurance: Affordable source of life insurance protection Investment Feature: Contribution opportunity to supplement qualified retirement plans Provides financial security for your family, while saving more now and in the future! 11

13 Ask Yourself Do I have enough financial protection? How much life insurance is right for me? Has my current life insurance coverage kept pace with my life? Can life insurance help meet my financial goals? Do I want flexible coverage with an investment feature? How can I meet my future financial goals? 44% of employees with life insurance say they may be underinsured, or do not know if they have enough coverage to maintain their lifestyle th Annual MetLife Employee Benefits Trends Study,

14 One Policy Two Benefits GVUL is life insurance protection that includes a tax-deferred investment feature: Life Insurance GVUL Investment Feature A permanent 1, portable benefit at affordable group rates 1 To the maturity age specified in your certificate 13

15 GVUL Advantages Over Term Protection Term Life Insurance GVUL Tax-free benefit for your survivors Death benefit protection that is an expense only plus plus plus plus Tax-free benefit for your survivors Portable life insurance coverage - that will not be automatically reduced at retirement Tax-deferred investment opportunity that you can tap into during your lifetime for education, real estate opportunities, post-retirement medical expenses, early retirement or other financial needs Nationally Recognized variable investment portfolios and an interest-bearing account Flexibility to change your policy as your needs change In general, if the funding of your certificate exceeds certain limits, it will become a modified endowment contract (MEC) and become subject to earnings first taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 59½ will also generally apply. MetLife will notify you if a contribution would cause your certificate to become a MEC. Withdrawals will reduce the death benefit and cash value and thereby diminish the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age.. 14

16 How Much Coverage? Do you have an appropriate amount to meet your needs? Assess your needs Income stream for my dependents Outstanding debts Accessibility of financial assets Future expenses Estate planning Update your coverage Change in marital status Birth or adoption of a child Job or salary change Home improvement or purchase Caring for aging family members 57% of those who already own life insurance said they are concerned about having financial security for their family in the event of their premature death th Annual MetLife Employee Benefits Trends Study,

17 Your GVUL Insurance Options For You Supplemental coverage is available in multiples from 1 to 8 times your Basic Annual Earnings to $5,000,000 maximum. For your Dependents Spouse/Domestic Partner coverage is available in $10,000 increment to a maximum of $150,000 Dependent Children coverage is available at $5,000, $10,000 or $20,000 on a guarantee issue basis (no medical questions) 16

18 The Investment Opportunity GVUL goes beyond providing tax-free death benefits for beneficiaries Build cash value today Use GVUL s investment feature during your lifetime 1 Access your cash value whenever you need it no surrender charges 1 1 Withdrawals will reduce cash value and death benefit

19 The Investment Opportunity A RANGE OF INVESTMENT OPTIONS TO MEET DIVERSE NEEDS CONSERVATIVE MODERATE AGGRESSIVE RISK TOLERANCE 21 Variable Investment Portfolios - managed by nationally recognized money managers Interest-Bearing Account* Tax-Free Transfers *The current crediting rate on the interest-bearing account is subject to change without notice.. Guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company. 18

20 The Investment Opportunity Potential tax-deferred growth No surrender charges No early withdrawal penalties 1,2 Tax-free withdrawals of basis 2 1 Withdrawals will reduce your cash value and death benefit. 2 In general, if you adhere to certain premium limits so that your policy is not considered a MEC, withdrawals will be subject to tax after policy basis has been reduced to zero. Policy basis is total premium paid (i.e., the cost of insurance and cash fund contribution) reduced by previous nontaxable withdrawals. If your policy is considered a MEC because you have exceeded certain premium limits, withdrawals and loans are taxable to the extent of policy gain (i.e., generally the excess of cash value over remaining basis) and a 10% penalty may apply if you are under age 591/2. 19

21 Tax-Advantage of Additional GVUL Premiums Buying Term Insurance & Investing Elsewhere Buying GVUL & Investing Within the Program Premiums for Term Life Insurance Coverage Basis = Only Amount of Money Invested in Separate Investment Separate Investment * Premiums For GVUL Insurance Coverage Extra GVUL Premiums For Investment Basis = Total GVUL Premiums Paid * Under current law, most tax payers are subject to a lower rate of tax on qualifying dividends and long-term capital gains than on ordinary income. Taxable distributions from GVUL are subject to ordinary income tax rates. 20

22 Tax Advantage of GVUL Premiums Example Age at Issue: 40 End of 25 Years $1,000,000 Coverage PREMIUMS Paid in Total = $223,670 (Basis) Withdrawals will reduce the cash value and the death benefit. Premium For GVUL Insurance Coverage $78,434 Extra Premium For Investment $145,236 $484 per month GVUL Investment Earnings $78,391 Cash Value Subject to Tax = $0 Available Cash Value = $223,627 The average asset charge by prospectus will vary depending on investments selected. Figures presented are hypothetical and are for illustrative purposes only. They assume an average net return of 3.5% over the investment period. Investments within a taxable account are hypothetical and are not indicative of any specific product. Investment returns are not guaranteed. Age, years until retirement, insurance needs, cost of insurance, tax bracket, and return will vary depending on your own personal situation. For purposes of the example on this slide, we assume that any income is taxable at ordinary income rates and not at the lower rates that apply to qualified dividends and net capital gains. See full illustration for details. Slide is not valid unless accompanied by a complete illustration. 21

23 Additional GVUL Premiums Strategies for Remaining Cash Value Can Include: Loan Provisions Payment of future premiums with tax-advantaged dollars Wealth transfer mechanism Outstanding loan amounts do not participate in the investment experience of the variable investment options and can have a permanent effect on certificate values and benefits. Upon surrender, lapse, or case termination, including those circumstances where termination of the Group GVUL contract results in termination of individual certificates/policies, loans become withdrawals and may become taxable to the certificate owner. Earnings within your GVUL coverage generally can be withdrawn from your certificate without income tax, as long as the cash value in your certificate is less than the total premium paid into your certificate at the time of withdrawal, less any prior withdrawals. Withdrawals will reduce the cash value and the death benefit of your certificate. 22

24 Determine What s Right For You Tax Deferral Tool Risk Tolerance Tool 23

25 Online Tools & Resources MyBenefits - Group Variable Universal Life Website Welcome Enroll & Manage 24

26 Valuable Features GVUL includes valuable features to assist your loved ones and beneficiaries in their time of need: Will Preparation 1 Participants and their spouses can utilize this feature to plan for future needs with a will, living will and power of attorney. MetLife Estate Resolution Services SM1 Access to personal legal advice and consultation when settling the insured s or spouse s estate. 1 Will Preparation and Estate Resolution Services are offered by Hyatt Legal Plans, Inc., Cleveland, Ohio. In certain states, legal services benefits are provided through insurance coverage underwritten by Metropolitan Property and Casualty Insurance Company and Affiliates, Warwick, Rhode Island. For New York sitused cases, the Will Preparation service is an expanded offering that includes office consultations and telephone advice for certain other legal matters beyond Will Preparation. Tax Planning and preparation of Living Trusts are not covered by the Will Preparation Service. Certain services are not covered by Estate Resolution Services, including matters in which there is a conflict of interest between the executor and any beneficiary or heir and the estate; any disputes with the group policyholder, MetLife and/or any of its affiliates; any disputes involving statutory benefits; will contests or litigation outside probate court; appeals; court costs, filing fees, recording fees, transcripts, witness fees, expenses to a third party, judgments or fines; and frivolous or unethical matters. 2 Subject to state law, and/or group policyholder direction, the Total Control Account is provided for all Life and AD&D benefits of $5,000 or more. The TCA is not insured by the Federal Deposit Insurance Corporation or any government agency. The assets backing TCA are maintained in MetLife s general account and are subject to MetLife s creditors. MetLife bears the investment risk of the assets backing the TCA, and expects to earn income sufficient to pay interest to TCA Accountholders and to provide a profit on the operation of the TCAs. Regardless of the investment experience of such assets, the interest credited to Total Control Accounts will never fall below the guaranteed minimum rate. Guarantees are subject to the financial strength and claims-paying ability of MetLife. 25

27 GVUL Summary Permanent 1 Life Insurance Protection Keep your coverage as long as you need it Update your coverage to account for significant life changes Tax-Deferred Investment to meet your goals 2 Freedom to change funds as your goals change Access to investment funds at any time for any reason Tax-free withdrawals up to your cost basis 1 To the maturity age specified in your certificate. 2 In general, if you adhere to certain premium limits so that your policy is not considered a MEC, withdrawals will be subject to tax after policy basis has been reduced to zero. Policy basis is total premium paid (i.e., the cost of insurance and cash fund contribution) reduced by previous nontaxable withdrawals. If your policy is considered a MEC because you have exceeded certain premium limits, withdrawals and loans are taxable to the extent of policy gain (i.e., generally the excess of cash value over remaining basis) and a 10% penalty may apply if you under age 591/2. Withdrawals reduce cash value and death benefit. 26

28 GVUL Billing Procedures & Administrative Topics Payroll Deductions: Cost of Insurance & Investment Premium Participant deductions will be split between the cost of insurance and investment premium (if participant chooses to invest) Coverage elections will be approved and effective first of the month following underwriting approval Current GVUL policyholders will receive a Confirmation of Coverage letter for any approved new coverage Participants enrolling for coverage for the first time will receive an individual GVUL certificate mailed to their home address 27

29 MyBenefits Website Access Unique log in for MetLife GVUL Company name must be Marsh & McLennan Companies, Inc. GVUL Employees that have registered on MyBenefits for another MetLife product must also register for MetLife GVUL and set up a separate user name and password 28

30 MyBenefits Website Access Log in page for those that have already registered on MyBenefits for GVUL Log in page for those that are registering for the first time on MyBenefits for GVUL 29

31 MyBenefits Website Access Registration page for those that have not registered on MyBenefits for GVUL 30

32 MyBenefits Website Access 31

33 MyBenefits Website Access 32

34 Questions? We can help with... A personalized illustration An explanation on how you can utilize loans and withdrawals from your investment account Any additional information on the program features Prospectuses for Group Variable Universal Life insurance and its underlying portfolios can be obtained by calling (800) You should carefully consider the information in the prospectuses about the contract s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding choices. Please read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company. There is no guarantee that any of the variable options in this product will meet its stated goals or objectives. Cash value allocated to the variable investment options is subject to market fluctuations so that, when withdrawn or surrendered, it may be worth more or less than the amount of premiums paid. Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. MetLife, its agents and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Employees should confer with their qualified legal, tax and accounting advisors as appropriate. Group Variable Universal Life insurance (GVUL) is issued by Metropolitan Life Insurance Company (MLIC), New York, NY 10166, and distributed by MetLife Investors Distribution Company (MLIDC) (member FINRA). Securities, including variable products, are offered through MetLife Securities, Inc. (MSI) (member FINRA/SIPC), 1095 Avenue of the Americas, New York, NY MLIC, MLIDC and MSI are MetLife companies. MetLife s standard Certificate Forms, available on or after 5/1/09 include: Certificate Forms G.24300(2003); G.24300A(2003); NY-G STOCK and G.24300A-STOCK. Coverage may also be provided on MetLife s previous standard Policy Forms 30037(6/96); FL: (5/2005); IN: (6/96); MA: (6/96); MD: (6/96); MN: (6/96); MS: (5/2005); NE: (6/96); NY: (5/2005); OK: (6/96); OR: (5/2005); PA: (6/96); SC: (6/96); SD: (6/96); and in TX: (5/2005) Metropolitan Life Insurance Company, New York, NY PEANUTS 2015 Peanuts Worldwide 33

35 ENROLLING IN VOLUNTARY BENEFITS Mercer Mercer Health Health && Benefits Benefits Administration Administration LLC LLC 34 Confidential Confidential and and Proprietary Proprietary Copyright Copyright Mercer Mercer LLC. LLC. All All rights rights reserved. reserved. 34

36 E N R O L L I N G I N V O L U N T A R Y B E N E F I T S HOW EASY IS IT TO ENROLL? As easily as picking up a phone or going online Monday Friday 8:00 a.m. to 8:00 p.m. EST Extended hours during open enrollment Monday Friday: 8:00 a.m. to 10:00 p.m. EST Saturday: 8:00 a.m. to 2 p.m. EST Visit us online BENEFIT ENROLLMENT PERIOD October 26 November 13 Mercer Health & Benefits Administration LLC Confidential and Proprietary Copyright 2015 Mercer LLC. All rights reserved. 35

37 This document and any recommendations, analysis, or advice provided by Mercer Health & Benefits Administration LLC and Mercer H&B Executive Benefits, a service of Mercer Health & Benefits Administration LLC (Mercer Voluntary Benefits/Mercer H&B Executive Benefits) (collectively, the Mercer Benefits Analysis ) are intended solely for the entity identified as the recipient herein ( you ). This document contains proprietary, confidential information of Mercer Voluntary Benefits/Mercer H&B Executive Benefits and may not be shared with any third party, including other insurance producers, without Mercer Voluntary Benefits / Mercer H&B Executive Benefits prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Mercer Benefits Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Mercer Voluntary Benefits/Mercer H&B Executive Benefits, Mercer Voluntary Benefits/Mercer H&B Executive Benefits shall have no obligation to update the Mercer Benefits Analysis and shall have no liability to you or any other party with regard to the Mercer Benefits Analysis or to any services provided by a third party to you or Mercer Voluntary Benefits/ Mercer H&B Executive Benefits. Mercer Voluntary Benefits/Mercer H&B Executive Benefits makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or reinsurers. Mercer Voluntary Benefits/Mercer H&B Executive Benefits makes no assurances regarding the availability, cost, or terms of insurance coverage. Mercer Health & Benefits Administration LLC (Mercer Voluntary Benefits/Mercer H&B Executive Benefits) makes no representations or warranties, expressed or implied, concerning the financial condition or solvency of any insurers. A.M. Best s Ratings are under continuous review and subject to change and/or affirmation. For the latest Best s Ratings and Best s Company Reports (which include Best s Ratings), visit the A.M. Best website at See Guide to Best s Ratings for explanation of use and charges. Best s Ratings reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of Mercer Voluntary Benefits/Mercer H&B Executive Benefits or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best s Ratings. Best s Ratings are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company. Mercer Health & Benefits Administration LLC, AR Insurance License # In California d/b/a Mercer Health & Benefits Insurance Services LLC, CA Insurance License #0G Copyright 2015 Mercer LLC. All rights reserved. The information contained in this document is confidential, may be privileged, and is intended for the use of the individual or entity named above. If you are not the intended recipient, please do not read, copy, forward, use, or store this document or any of the information contained herein.