g r o u p d i s a b i l i t y c o n t r a c t p r o v i s i o n s

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1 The details. g r o u p d i s a b i l i t y c o n t r a c t p r o v i s i o n s Your business deserves a group disability plan Regular Occupation Definition of Disability that provides optimum support for you and During the regular occupation period, your employees. That s exactly what you get employees are considered disabled when with Prudential. Choose from our wide range they cannot perform the material and of flexible products including: substantial duties of the occupation they l Short Term Disability Insurance (STD) performed when their disability began and l Long Term Disability Insurance (LTD) they sustain a 20% loss in their income. l Integrated Short and Long Term Prudential looks at the occupation as it is Disability Insurance normally performed rather than how the l Prudential IDM Disability and Absence work is done for a particular employer or at Management Solutions a specific location. The regular occupation period is standard for STD and generally With Prudential s group disability contract, you standard for the first two years of LTD get more choices and increased flexibility from benefits. We offer options for partial and a name you and your employees know and residual disability. trust. In addition to our standard provisions, we offer many optional provisions that let you Gainful Occupation Definition of Disability build the plan you need for better absence The period following the regular occupation management, improved productivity, and period is known as the gainful occupation higher employee satisfaction. period. During this time, employees continue Cost-effective Absence Management to receive LTD benefits when they are unable to pursue a gainful occupation. Our concise question and answer contract A gainful occupation is one that employees helps eliminate ambiguities that add to can perform (based on education, training, claim risk, complicate plan administration, or experience) and which provides or can and increase costs. These provisions are provide a pre-determined percentage of designed to help you manage the impact of disabilities and reduce your overall risk. IFS-A The Prudential Insurance Company of America

2 pre-disability earnings. Prudential s vocational rehabilitation team can help identify and secure jobs for employees who are capable of gainful work. Although the gainful occupation period is standard, it can be replaced with the catastrophic definition of disability. Catastrophic Definition of Disability Employees can continue to receive LTD benefits when they are unable to perform at least two activities of daily living, as defined in the group contract, or have a severe cognitive impairment. You can choose to have this augment the regular occupation period. And it can also replace or follow the gainful occupation period. Material and Substantial Duties Definition Material and substantial duties are those duties normally required by the employee s regular occupation, including those that cannot be reasonably omitted or modified. These duties can be further defined as those normally required during a 40-hour week. Assessment against this definition helps identify medical restrictions or limitations and develop timely return-to-work plans. Disability Earnings Definition As a standard practice, employees are encouraged to work during periods of disability when the employer can accommodate restrictions or job modifications. While doing so, employees can keep all their disability earnings and be eligible for partial disability benefits. If an employee is not working to his or her fullest extent possible (to be determined by the Disability Claim Manager), benefits may end. Pre-existing Condition Exclusion Under this exclusion, an employee s disability is excluded if the disability was due to a pre-existing condition that was diagnosed or treated during the look back period (usually three months prior to the coverage effective date). A Prudent Person Pre-existing Condition Exclusion which denies benefits for a condition that most people would have sought treatment for can be added.* Generally, a condition that was diagnosed or treated during the look-back period would be covered if the disability begins 12 months after the effective date of coverage. Insurance Fraud Protection Focused on eliminating the potential for fraud and/or fraud detection, this standard provision helps protect you and your employees from rising costs resulting from fraud. Benefit Offsets Prudential s group disability contract includes multiple offsets. Offsets are other sources of

3 income deducted from a disabled employee s STD or LTD benefit amount. Offsets help ensure disabled employees receive the benefits they re entitled to collect, but prevent overreplacement of pre-disability income. Some examples of offsets are Social Security Disability Benefits, Salary Continuance/Accumulated Sick Leave, Unemployment Income, and Workers Compensation. Rehabilitation Requirement An LTD rehabilitation program may include a work hardening program, job placement, or training. If Prudential and the employee s doctor feel a rehabilitation program is appropriate, the employee will be required to participate. 24-Month Mental Illness Limitation This standard LTD provision limits coverage to a specific time period for disabilities related to mental illness, including substance abuse. Limited Pay Period for Self-Reported Symptoms Coverage for disabilities based primarily on self-reported symptoms that cannot be confirmed with routine medical tests can also be limited to a specific time period, usually 24 months. This is a standard LTD provision. Improve Your Productivity Our contract helps you better manage your workforce with effective return-to-work and rehabilitation programs. With these standard LTD provisions, your employees get the support they need, and you get them back where you need them at work. Worksite Modification Benefit When worksite modifications would allow an employee to stay at or return to work, this benefit helps cover the costs. Return-to-Work Incentive To encourage a gradual return to work during the first twelve months of part-time work, employees can receive full benefits as long as their combined income and disability benefits do not exceed their monthly pre-disability earnings. Enhanced Rehabilitation Incentive Disabled employees who participate in a Prudential-approved rehabilitation program receive an additional monthly payment. Help Your Employees Give your employees the support they need to get through tough times. Prudential s group disability

4 contract offers these optional benefits that help them meet financial and family obligations. Social Security Claimant Assistance Program Since the Social Security Disability Benefits (SSDB) application/appeal process can be complicated and confusing, Prudential offers the Social Security Claimant Assistance Program, which guides disabled employees through the SSDB process. The program may include direct assistance from Prudential, assistance through an expert SSDB agency, or legal fee reimbursement. STD Survivor Benefit The STD Survivor Benefit pays an additional benefit to the survivors of an insured who received STD payments for at least 15 consecutive days prior to death. Accelerated STD Survivor Benefit This benefit allows terminally ill employees to collect their STD Survivor Benefit while still living. To qualify, the employee must be disabled for 15 days or more and have a life expectancy of six months or less. If the Accelerated STD Survivor Benefit is elected, no STD Survivor Benefit is payable to the insured s survivor. Day Care Benefit Employees who are receiving LTD benefits and participating in a Prudential-approved rehabilitation program can receive an additional monthly amount (for each eligible child) to help with day care expenses. Spouse and Elder Care Benefit Employees who are receiving LTD benefits and participating in a Prudential-approved rehabilitation program may be eligible for an additional monthly benefit to help cover the cost of caring for chronically-ill or disabled spouses or certain family members. Education Benefit This benefit, payable for up to four years while the employee is on LTD, provides an additional monthly amount to help cover college expenses for each unmarried and dependent child under 23. Employee Catastrophic Disability Benefit** When the employee is catastrophically disabled, this LTD provision provides an additional benefit that cannot be reduced by any other sources of income. Employees are considered catastrophically disabled when, due to illness or injury, they are unable to perform (without substantial supervision) at least two activities of daily living, or have a severe cognitive impairment, which requires substantial supervision to protect the employee from threats to health and safety.

5 Spouse Catastrophic Disability Benefit** When the employee s spouse is catastrophically disabled and the employee is receiving LTD benefits, this provision provides a benefit that cannot be reduced by any other sources of income. Spouses are considered catastrophically disabled when, due to illness or injury, they are unable to perform (without substantial supervision) at least two activities of daily living, or have a severe cognitive impairment, which requires substantial supervision to protect the spouse from threats to health and safety. Critical Illness Benefit If an employee s long-term disability is caused by a critical illness (as defined by your policy), this benefit provides an extra payment that cannot be reduced by other sources of income. However, the Critical Illness Benefit, plus all other benefits payable under the group contract, may not exceed 100% of monthly pre-disability earnings. This benefit is subject to a pre-existing condition exclusion. Continued Health Care Contribution Benefit This benefit, payable to disabled employees receiving LTD benefits, provides a payment to help cover health insurance premiums under COBRA. To qualify, disabled employees must provide us with written proof of the cost of premiums. Activities of Daily Living Extended Duration Benefit Disabled employees who are unable to perform two or more activities of daily living (ADLs), as defined in the policy, or have severe cognitive impairment, may be able to extend the LTD maximum benefit duration for up to 60 months beyond the limiting age, provided they continue to be eligible for the ADL Extended Duration Benefit. LTD Survivor Benefit This benefit provides an additional payment equal to three or six times the disabled employee s gross monthly benefit if the employee dies while receiving LTD benefits. To qualify, the employee s period of disability must have continued for at least 180 consecutive days before death. Accelerated LTD Survivor Benefit This benefit allows terminally ill employees to collect their LTD Survivor Benefit while still living. To qualify, employees must be disabled for 180 days or more and have a life expectancy of six months or less. If the Accelerated LTD Survivor Benefit is elected, no LTD Survivor Benefit is payable to the insured s survivor.

6 Build on The Rock. Contact your broker or Prudential group insurance sales representative today to find out how our flexible group disability contract can be customized to meet your needs. *Prudent Person Exclusion may not apply in all states. ** Employee and Spouse Catastrophic Disability Benefits are known as Supplemental Disability Benefits in New Hampshire. This is not long term care insurance. Group insurance contracts contain exclusions and reduction sections that describe certain acts, events, or occurrences that would preclude the payment of the Group Disability Insurance benefit. Some contracts may include a pre-existing condition exclusion. A pre-existing condition is an injury or sickness for which an insured received medical treatment, consultation, diagnostic measures, prescribed drugs or medicines, or for which the insured followed treatment recommendations during a predetermined period prior to the effective date of coverage. Exclusions may vary by state. Refer to the Group Contract for complete details regarding exclusions and reductions. Not all provisions are applicable to Short Term Disability plans. Not all provisions are available in all states. Actual contractual language may vary depending on state requirements and the plan benefits chosen. Short Term Disability, Long Term Disability, and Integrated Short and Long Term Disability coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, 751 Broad Street, Newark, NJ (Contract Series 83500) This brochure is a summary of benefits. It does not include all plan provisions, exclusions, and limitations. A Group Contract with complete plan information will be provided. If there is a discrepancy between this document and the Group Contract issued by The Prudential Insurance Company of America, the terms of the Group Contract will govern. This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical, or major medical insurance as defined by the New York State Insurance Department. North Carolina Residents: THIS IS NOT A MEDICARE SUPPLEMENT PLAN. If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare, which is available from the company. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates. IFS-A Ed. 5/ M