The Intelligent Choice for Basic Disability Income Protection

Transcription

1 The Intelligent Choice for Basic Disability Income Protection provider Pls Limited Keeping Income strong

2 We prposeflly engineer or basic disability income prodct to provide benefit-rich featres delivering strong income protection. ProVider Pls Limited Definition of Total Disability Non-Cancellable & Garanteed Renewable to Age 65 or 67 Basic Residal Disability Benefit Rider* (with Recovery Benefit) Waiver of Elimination Period Waiver of Premim Benefit Benefit Prchase Rider Cost of Living Adjstment Rider* Presmptive Total Disability Benefit Retirement Protection Pls Disability Benefit Rider Unemployment Waiver of Premim Rider Atomatic Benefit Enhancement Rider Catastrophic Disability Benefit Rider Social Insrance Sbstitte Rider Capital Sm Benefit Premim Options * Applications for ProVider Pls Limited mst inclde the selection of either the Basic Residal Disability Benefit Rider or the 3% Maximm Cost of Living Adjstment Rider. The featres and optional riders listed above are described in this brochre beginning on Page 4. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms, conditions and limitations.

3 Consider What Yor Income Makes Possible Yor income is the fondation of the life yo created. Withot income, or everyday lives and or plans for the ftre are affected. What does the life yo bilt look like? What wold be impacted if yo were too sick or injred to work? Use the Monthly Expense Tool on this page to assess yor personal sitation and learn what may be at risk. What if the Unexpected Happened to Yo? Illnesses like cancer, heart attack or diabetes case the majority of long-term disabilities. Back pain, injries, and arthritis are also significant cases. * If the nexpected happened to yo... How long wold yor savings last? Wold yor spose or partner s income be sfficient for all yor financial obligations? What lifestyle changes wold yo be forced to make forgo college fnding, postpone retirement, downsize yor home? Sorces of Income Replacement When yo lose the ability to earn a living, other sorces of income become critical to maintaining yor lifestyle. Bt are they enogh? Will they be there when yo need them? Employer-Sponsored Grop Disability Coverage Social Secrity Worker s Compensation Retirement Savings Personal Assets Sposal Income Individal disability income protection is one of the most reliable and flexible sorces of income replacement. How do yo spend yor income and what wold be at risk? MONTHLY EXPENSE TOOL Hosing $ Utilities $ Groceries $ Credit Cards $ Child Care $ College Tition $ Retirement $ Ato Payments $ Loan Payments $ Insrance Premims $ Entertainment/Miscellaneos $ TOTAL: * Concil for Disability Awareness website accessed November, 2011, disability/cases.asp 1

4 Consider a Policy in its Entirety Acknowledging that yor crrent sorces of income replacement may not be adeqate in the event yo become too sick or injred to work is a key first step. Now it s time to evalate choices that will meet yor needs for income replacement. It s important to consider how a policy performs in its entirety to determine if the coverage can provide sfficient vale and financial assistance dring a period of disability. The information below was developed to help yo nderstand how disability income policies work and how they differ from company to company. Use the qestions and key terms on this page to help identify the featres to look for in a high-qality disability income policy. One - Two - Three - How mch income replacement will I need? To start, se the Monthly Expense Tool on Page 1 to determine yor risk. Discss yor personal sitation with yor insrance professional, who can provide frther detailed assessment of yor income replacement needs. How mch coverage may I qalify for? The monthly benefit amont is based on yor financial and occpational information. Most policies offer the opportnity to prchase more coverage as yor income grows withot the need to provide frther evidence of good health. What will determine whether or not I m disabled and when do benefits begin? The core of any disability income policy, the definition of Total Disability, otlines what constittes being totally disabled. This definition is in every carrier s policy; however, it does not always mean the same thing. Some policies pay benefits if yo re nable to perform the dties of yor own occpation, even if yo are at work in another occpation. Others pay only if yo re nable to perform the dties of yor own occpation and yo are not working in any other occpation. Still others pay only if yo cannot work in any occpation for which yo are reasonably qalified. Most policies also offer benefits for Residal Disability those payable if yor disability isn t total bt does reslt in yor inability to perform some aspects of yor job. Residal disability benefits are typically payable in an amont that is proportionate to the loss of income sffered de to sickness or injry many policies have different reqirements. For - Five - Six - How long will benefits be payable? A policy s Benefit Period refers to the maximm length of time yor policy will pay benefits once yo become eligible. Standard choices inclde 2, 5, or 10 years; to age 65 or to age 67. A few select policies offer the option to extend benefits for life shold yo remain continosly, totally disabled. Cold my policy be changed, cancelled or my premim raised? Renewability provisions are among the most critical featres of any disability income policy becase they define yor rights for keeping yor coverage in force. Policies can be non-cancellable and garanteed renewable, or garanteed renewable only. Policies that are both Non-Cancellable and Garanteed Renewable offer the strongest premim and coverage garantees available, which means as long as yor premims are paid on time, yor policy cannot be cancelled, premims cannot be increased and policy provisions cannot be changed. Policies that are only Garanteed Renewable cannot be cancelled, bt premims can be increased. Will my benefits keep pace with inflation? Most policies offer riders to help yor benefits keep pace with inflation. A Cost of Living Adjstment (COLA) rider will adjst benefits each year while yo remain disabled and eligible for benefits. COLA riders can be vital to maintaining yor standard of living dring an extended period of disability. A policy s Elimination Period (or waiting period) is the length of time that mst elapse following the onset of disability before benefits become payable. 2

5 Benefit-Rich Basic Income Protection ProVider Pls Limited When it comes to income protection, professionals shold consider a strong policy to help them maintain a healthy income shold they become too sick or injred to work. We may not know when a disability cold strike bt by choosing ProVider Pls Limited, yo can feel confident that yo ve selected a strong, featre-rich policy from a reptable indstry innovator with exemplary financial ratings. Berkshire Life, a Gardian company, has the following ratings as of November, 2011: A++ from A.M. Best Company AA+ from Standard & Poor s Contine reading abot ProVider Pls Limited: Total Disability Unable to work in yor occpation Renewability Provisions Non-Cancellable & Garanteed Renewable Basic Residal Disability Benefit Rider Able to work bt with redced earnings and in a redced capacity More Policy Riders & Featres Flexible ways to cstomize yor coverage and provide comprehensive protection Berkshire Life Insrance Company of America, Pittsfield, MA, is a wholly owned stock sbsidiary of The Gardian Life Insrance Company of America, New York, NY. 3

6 Definition of Total Disability Featre Vale: The Choice to Work in Another Occpation is Yors How this Featre Works to Protect Yo: ProVider Pls Limited is prposeflly designed to offer yo options so that yo can choose the definition of disability that best serves yor niqe circmstances. This choice is made at the time that yo initially prchase yor policy. With or modified own-occpation definition of Total Disability, yo will be eligible for total disability benefits when yo are nable to perform the material and sbstantial dties of yor occpation solely de to injry or sickness and yo are not gainflly employed. Or tre own-occpation definition of Total Disability makes it possible for yo to work in another occpation and still be eligible for total disability benefits. We consider yo totally disabled if, solely de to injry or sickness, yo are nable to perform the material and sbstantial dties of yor occpation. Advantages of or tre own-occpation definition of total disability inclde: If yo have the energy, interest, and motivation to prse another occpation, while totally disabled in yor occpation. If yo are a physician or a dentist who has limited yor occpation to the performance of the material and sbstantial dties of a single medical or dental specialty, we will deem that specialty to be yor occpation. Prodct availability, provisions, and featres may vary from state to state. Please refer to the Appendix for more information regarding prodct terms and conditions. 4

7 Non-Cancellable & Garanteed Renewable Featre Vale: Offers the Greatest Degree of Consmer Protection How this Featre Works to Protect Yo: Renewability provisions are among the most critical featres of any disability income policy becase they define yor rights for keeping yor coverage in force. ProVider Pls Limited offers one of the strongest premim and coverage garantees available becase it is both Non-Cancellable and Garanteed Renewable to age 65 or 67. In considering ProVider Pls Limited, a policy that is both non-cancellable and garanteed renewable, yo are assred that premim rates and policy provisions will not be changed as long as premims are paid on a timely basis to age 65 or 67. Personal ownership of a non-cancellable and garanteed renewable policy means it is portable, so yo can take it with yo even if yo change employers. Prodct availability, provisions, and featres may vary from state to state. Please refer to the Appendix for more information regarding prodct terms and conditions. 5

8 Basic Residal Disability Benefit Rider Featre Vale: Designed to Help Yo Throgh Yor Physical and Financial Recoveries How this Featre Works to Protect Yo: Sometimes an illness or injry doesn t case a total disability bt does limit yor ability to work, which reslts in decreased income. Or, yo might sffer a total disability and retrn to work, bt not at yor pre-disability earnings. Or Basic Residal Disability Income Rider helps offset yor disability-related earnings. This featre provides benefits when, solely de to injry or sickness, yo sffer a loss of income of 20% or more and yo can perform one or more, bt not all, of the material and sbstantial dties of yor occpation, or yo can perform them all, bt not for the length of time they normally reqire. Here s how it works: Yo are considered residally disabled if yo are gainflly employed and, while not totally disabled, solely de to sickness or injry: Yo experience a loss of income that is at least 20% of yor prior income, and either Yo can perform one or more, bt not all, of the material and sbstantial dties of yor occpation; or Yo can perform them all, bt not for the length of time they normally reqire. Benefits are payable in proportion to yor loss of income and are payable for p to the policy benefit period, and: We ll consider a loss of income of more than 75% to be 100%. For the first 6 months that residal disability benefits are payable, we ll consider yor loss of income to be 50% of yor prior income or the actal percentage of loss, if greater than 50%. Even after yo flly recover and retrn to work fll-time, we will pay a recovery benefit as long as yor loss of income is at least 20% of yor prior income and is solely the reslt of the injry or sickness that cased the disability. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 6

9 Recovery Provision Featre Vale: Pays Benefits While Yo Recover Financially How this Featre Works to Protect Yo: This recovery benefit, which is bilt into or Basic Residal Disability Benefit Rider, is designed to do more to assist with yor financial recovery following a disability. Shold yo contine to sffer at least a 20% loss of income solely de to yor sickness or injry even after yo have physically recovered and retrned to work fll-time* we wold contine to pay a recovery benefit for p to the fll benefit period. We deliver benefits for a longer dration than most other companies. Other carriers may only pay for a limited time, which may or may not properly spport yor financial recovery. CONSIDER THIS: Yo have a bike accident and injre yor knee. Yor initial prognosis is srgery with six months of rehabilitation. Unforeseen setbacks reslt in tilizing yor ProVider Pls Limited policy, with its Basic Residal Disability Benefit Rider, for an extended period of disability. Bike Accident Elimination Period Unable to work at all Physical recovery allows yo to retrn to work part-time Physical recovery allows yo to retrn to work fll-time Financial recovery No income Sffered loss of income of 20% or more and Sffered a loss of time or dties Contined to sffer a loss of income of 20% or more Earnings grew to more than 80% of pre-disability income The elimination period is the length of time that mst elapse following the onset of disability before benefits become payable. Policy pays Total Disability Benefits. Policy pays Residal Disability Benefits for loss of income. Policy pays a Recovery Benefit for contined loss of income, despite yor retrn to work fll-time. Claim ends. * Yor retrn to fll-time employment mst be immediately following a period of disability for which we paid benefits nder the Policy. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. Helps yo regain financial strength as yo regain physical strength 7

10 Waiver of Elimination Period ProVider Pls Limited EXCLUSIVE Featre Vale: Pays Sooner for Sbseqent Disabilities Regardless of Case How this Featre Works to Protect Yo: We nderstand that any period of disability can be emotionally and financially stressfl. We took this into accont when we designed or niqe Waiver of Elimination Period (EP) policy featre. If yo sffer a disability that lasts more than six months and we pay benefits, we will waive the elimination period for any sbseqent disability that occrs within five years regardless of the case. CONSIDER THIS: Yo have a heart attack and yo re Totally Disabled for seven months. After satisfying the elimination period, yo received benefits. Then yo recover. Within five years, yo become disabled again, from any case whether from residal effects of yor previos heart attack or another case, sch as a car accident. With ProVider Pls Limited, yo wold not need to satisfy another elimination period reqirement. Month* Stats ProVider Pls Limited Other Policies 1st 3rd Disabled EP EP 4th 7th Disabled $40,000 $40,000 8th 54th Recovered $0 $0 55th 57th Disabled $30,000 EP We Pay More Benefits Sooner Chart Assmptions: $10,000 monthly benefit, 90-day elimination period. *The elimination period of a disability insrance policy may be referred to in days or months. The ProVider Pls Limited elimination period is expressed in terms of days. For the prpose of this illstration, one month eqals 30 days. Prodct availability, provisions, and featres may vary from state to state. Please refer to the Appendix for more information regarding prodct terms and conditions. 8

11 Waiver of Premim Benefit Featre Vale: Helps Redce Financial Stress After Recovery How this Featre Works to Protect Yo: We waive premims dring a period of disability and contine waiving for six months after yor claim ends. What s more, we also reimbrse for premims yo may have paid that apply to the period of disability even if paid prior to yor disability. We refnd any premims yo have paid that apply to the period of disability. We ll waive premims for as long as yo re disabled in the same claim and receiving benefits. We ll contine to waive premims for six months following yor recovery. While refnding ALL premims paid that apply to a period of disability is not a typical practice with other disability insrance carriers, we believe it is the right thing to do. Waiving premims for six months after a disability ends is another niqe advantage we provide. It helps yo stay focsed on getting back to work and restoring financial health. Prodct availability, provisions, and featres may vary from state to state. Please refer to the Appendix for more information regarding prodct terms and conditions. 9

12 Benefit Prchase Rider Protecting increases in ftre income Featre Vale: Benefit Increases with No Medical Underwriting Garantees the opportnity to prchase more disability income protection as yor income grows, with no medical nderwriting. How this Featre Works to Protect Yo: To help protect a growing income, or Benefit Prchase Rider is designed to help yo increase coverage with ease. Obtaining additional coverage to protect a growing income normally reqires providing evidence of good health. Or Benefit Prchase Rider offers yo the opportnity to prchase additional coverage every three years in the form of a separate policy with no medical insrability reqirement. Yor eligibility will be determined by yor then-crrent financial sitation and taking into consideration other disability insrance yo have in force, for which yo have applied, or for which yo are eligible. Here s how it works: Yo sbmit an application for an Increase Policy and other evidence of insrability every three years, ntil age 55. Then, we ll determine what amont of additional coverage, if any, yo qalify for. Yo can choose to prchase all or part of the additional coverage amont we offer yo. However, yo mst choose to accept at least 50% of the amont of additional coverage offered to keep this rider in effect. Special Benefit Prchase Option Offer! Or Benefit Prchase Rider also incldes special option dates for events sch as the loss of grop long-term disability coverage, giving yo the flexibility to apply for an increase otside of the normal three-year review period. There are no premims associated with this rider. However, in order to elect this Benefit Prchase Rider, yo mst: Also prchase the Basic Residal Disability Benefit Rider (described on Page 6 of this booklet) Prchase at least 75% of the maximm benefit amont yo are financially eligible for at the time the policy is issed Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 10

13 Cost of Living Adjstment Rider Featre Vale: Can Increase Benefits Dring a Disability How this Featre Works to Protect Yo: Dring a disability, fixed dollar benefits cannot keep pace with inflation. That is why a Cost of Living Adjstment (COLA) Rider provides an important benefit. We offer yo this COLA rider option which adjsts yor policy s monthly benefit annally to help keep pace with inflation dring a disability. It is designed to adjst yor monthly benefit, whether yo re totally or residally disabled, and incldes compond annal adjstments and a maximm benefit adjstment of 3%. There are no limits to the nmber of annal adjstments that may be made on yor policy before age 65. Here's how it works: After yo ve been disabled for 12 months, we ll adjst yor monthly benefit each year according to changes in the Consmer Price Index for Urban Consmers (CPI-U). Benefit adjstments have a maximm annal increase of 3% componded. Additionally, shold yo recover, yo wold atomatically retain increases, free of charge ntil age 65 or 67. Cmlative Annal Benefits Withot COLA Rider 3% Maximm* 1 $90,000 $90,000 2 $120,000 $123,600 3 $120,000 $127,308 4 $120,000 $131,127 5 $120,000 $135, $120,000 $156, $120,000 $181, $120,000 $210,421 TOTAL BENEFIT $2,370,000 $3,194,445 Chart Assmptions: $10,000 Monthly Benefit, 90-day Elimination Period, To age 65 Benefit Period, Totally Disabled from ages 45 to 65. * Assmes the CPI-U increases by 3% annally throghot the entire period of disability. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 11

14 Presmptive Total Disability Benefit Featre Vale: Engineered to Provide Immediate Benefits in More Sitations How this Featre Works to Protect Yo: The ProVider Pls Limited Presmptive Total Disability Benefit is a bilt-in policy featre designed to provide extra financial protection for certain severe disabilities. Even if yo can still perform some or all of yor reglar job responsibilities, and even if yo are expected to recover, we consider yo to be totally disabled and entitled to fll benefits if sickness or injry reslts in the total and complete loss of sight in both eyes, hearing in both ears, speech, or the entire se of both hands, both feet, or one hand and one foot. Engineered to provide day one benefits for these severe disabilities, we waive the elimination period and pay fll benefits even if yo re expected to recover, and even if yo re flly employed and earning an income despite yor condition. Other carrier policies might only waive the elimination period for presmptive disabilities that are permanent and irrecoverable. CONSIDER THIS: Yo sffer compond fractres in both feet de to a car accident, experience the total and complete loss of their se, WAIVES ELIMINATION PERIOD & PROVIDES DAY ONE BENEFITS EVEN IF EXPECTED TO RECOVER ProVider Pls Limited Presmptive Benefit YES Most Other Policies' Presmptive Benefit NO bt are expected to recover. CONSIDERS YOU TOTALLY DISABLED EVEN IF EXPECTED TO RECOVER YES NO PAYS YOU TOTAL DISABILITY BENEFITS FOR YOUR PRESUMPTIVE DISABILITY REGARDLESS OF YOUR ABILITY TO WORK AND YOUR EXPECTED RECOVERY YES NO Prodct availability, provisions, and featres may vary from state to state. Please refer to the Appendix for more information regarding prodct terms and conditions. 12

15 Retirement Protection Pls Disability Benefit Rider Featre Vale: Helps Replace Retirement Contribtions How this Featre Works to Protect Yo: Or Retirement Protection Pls (RPP) Disability Benefit Rider is designed to help yo maintain a healthy retirement strategy by replacing contribtions made to a defined contribtion plan when yo are totally disabled and not gainflly employed. Once eligible for benefits, a monthly benefit insring p to 100% of yor retirement contribtions, inclding any employer-matching contribtions, will be paid into a trst established by yo. The trstee invests benefits at yor direction. Here s how a retirement plan might fare with and withot an interrption of contribtions. RPP can close the savings gap cased by a disability. Combined assets, retirement fnd if disabled pls RPP trst, wold total $2,862,326. $2,980,719* Retirement Fnd if Healthy $2,610,896** RPP Trst Assets Retirement Assets $251,430 Retirement Fnd if Disabled Age Chart Assmptions: $2,000 per month contribted to the plan beginning at age 35. Total disability occrs at age 36 and contribtions stop. Disability contines to age 65. * Assmes an annal rate of retrn of 8% on retirement contribtions, with no disbrsements taken prior to age 65. ** Assmes yo are eligible for benefits nder the policy, with payments beginning 30 days following the 180-day elimination period and an annal rate of retrn of 8% on RPP benefits. This rate is for illstration prposes only. Actal rate of retrn will likely vary. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 13

16 More Policy Riders & Featres Unemployment Waiver of Premim Rider Helps yo maintain yor coverage dring a period of nemployment. This featre waives premim payments for 12 months if yo become nemployed and receive nemployment compensation for at least 60 consective days regardless of whether or not yo retrn to work. Best of all, yor coverage contines to protect yo dring this 12-month period. Atomatic Benefit Enhancement Rider This convenient, no-cost rider helps keep yor disability insrance benefit aligned with normal, annal income increases yo might experience when healthy. It is applied atomatically to eligible policies and provides an annal 4% benefit increase each year for six years, with no proof of income reqired. Each increase will inclde an additional premim based on yor then-crrent age. Rider eligibility will be determined at the time of nderwriting. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 14

17 Catastrophic Disability Benefit Rider Since catastrophic disabilities are often permanent or at least long term we specifically designed or Catastrophic Disability Benefit Rider to inclde an atomatic annal componded 3% increase adjstment to help benefits grow faster and provide greater income protection. When combined with the base policy benefit and other disability coverage, the Catastrophic Disability Benefit Rider may provide p to 100% income replacement. Catastrophic disabilities inclde: Cognitive impairment that reqires sbstantial spervision The loss of two or more of the following Activities of Daily Living (ADL) bathing, continence, dressing, eating/feeding, toileting and transferring Total, complete and irrecoverable loss of sight in both eyes, hearing in both ears, speech, or the entire se of both hands, both feet or one hand and one foot Social Insrance Sbstitte Rider A monthly benefit that coordinates with payments received nder Social Secrity and some other government programs. This rider is often prchased to redce the total cost of coverage, while helping to assre an adeqate level of disability protection. Capital Sm Benefit Or Capital Sm Benefit is paid in addition to any other benefits payable if, becase of sickness or injry, yo lose the entire sight in one eye with no possibility of recovery or sffer the complete loss of a hand or foot severed throgh or above the wrist or ankle and yo srvive it for 30 days. The Capital Sm Benefit is eqal to 12 times yor monthly benefit. No more than two Capital Sm Benefits are payable dring yor lifetime. Prodct availability, provisions, and featres may vary from state to state. Optional riders are available for an additional premim. Please refer to the Appendix for more information regarding prodct terms and conditions. 15

18 Next Steps to Consider Make this Abot Yo and Yor Life Use the Monthly Expense Tool on Page 1 to help identify how mch income protection yo think yo ll need. Next, consider which featres yo want and how mch yo re comfortable spending annally on a disability income policy. Use the space below to write down these and other considerations to discss with yor insrance professional Decide how yo want to pay for yor policy: Level Premim Fixed premim that never increases. Graded Premim Lower initial premim that annally increases according to a pre-determined (yet garanteed) schedle. If this is the payment option yo choose, yo may convert to a Level Premim Payment on any policy anniversary date throgh age

19 Appendix Prodct Information Disability income insrance policy forms 1400, 1500 and 1600 nderwritten and issed by Berkshire Life Insrance Company of America, Pittsfield, MA, a wholly owned stock sbsidiary of The Gardian Life Insrance Company of America, New York, NY. Prodcts not available in all states. Prodct availability, provisions, and featres may vary from state to state. Benefit Period Benefit Prchase Rider Definition of Total Disability Retirement Protection Pls Disability Benefit Rider A twenty-for month mental and/or sbstance-related disorders limitation is inclded on all ProVider Pls Limited policies except those issed in the state of Vermont. A discont may apply in some states and for some policy benefit periods. While medical information is not reqired when applying for additional coverage prsant to the Benefit Pchase Rider, applications will be financially nderwritten, taking into consideration the insred's then-crrent income, occpation, and employment, as well as all disability insrance which is then in force, or for which the insred has applied or is eligible to receive. Coverage may not be added while the insred is disabled, when benefits are payable, or dring a sspension period. Additional Restrictions and limitations apply. A different definition of total disability applies to policies issed in California. Contact yor agent or broker for complete details. Not available in New Jersey. Retirement Protection Pls is not a pension plan or a sbstitte for one. Unemployment Waiver of Premim Rider Not available in Connectict, Maryland, Minnesota, New York and Tennessee. Cost of Living Adjstment Rider Catastrophic Disability Benefit Rider Social Insrance Sbstitte Rider This benefit is not necessarily protection against increases in the cost of living. Not available in California, Connectict and Texas. In New Jersey, this benefit cannot exceed one times the Base Monthly Indemnity pls the Social Insrance Sbstitte Rider. If legislated benefits are paid in excess of the Social Insrance Sbstitte Rider benefit amont, no Social Insrance benefit will be paid. In New York and New Jersey only, the Social Insrance sbstitte indemnity is payable only if yo are not receiving any legislated benefits. 17

20 Disability income insrance policy form 1400, 1500 and 1600 nderwritten and issed by Berkshire Life Insrance Company of America, Pittsfield, MA, a wholly owned stock sbsidiary of The Gardian Life Insrance Company of America, New York, NY. Prodct availability, provisions, and featres may vary from state to state. This policy provides disability insrance only. It does not provide basic hospital, basic medical or major medical insrance as defined by the New York State Insrance Department. For policy forms 1400, 1500, or 1600, the expected benefit ratio is 50% (inclding NY 1400). For policy forms 1400-F, 1500-F, or 1600 F, the expected benefit ratio is 60% (NY only). The expected benefit ratio is the portion of ftre premims that the company expects to retrn as benefits, when averaged over all people with these policy forms respectively. This brochre is provided for informational prposes only and shold not be considered tax or legal advice. Please contact yor tax or legal advisor regarding the tax treatment of the policy and policy benefits. Yo shold conslt with yor own independent tax and legal advisors regarding yor particlar set of facts and circmstances. The information provided is not intended or written to be sed, and cannot be relied pon, to avoid penalties imposed nder the Internal Revene Code or state and local tax law provisions. Berkshire Life Insrance Company of America 2011 All Rights Reserved The Gardian Life Insrance Company of America 7 Hanover Sqare New York, NY Pb5285BL (12/11)