Benefit Solutions That Count

. . .to expand your employee benefit offerings and save costs.

. . .to conduct your benefit enrollments quickly and efficiently.

. . .to simplify your benefits administration.

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Benefit Solutions That Count

• Risinghealthcarecostsandpremiums.

• Newgovernmentregulations.

• Competitiontoofferabetterbenefitsprogram.

• Increasedoverheadtocompetewithyourbenefitsbudget.

Peoplemakethedifference,inyourbusinessandinours.Youwant to offer your employees the best benefits package you can, and so dowe.Ourprofessionalbenefitcounselorsarededicatedtomakingbenefits count for your company and your employees.

Wedon’tjustofferbenefits—becausenotwobusinessesarealike.Wecanhelpyouunderstandwhattypeofbenefitsmayworkbest for your company and help your employees better understand the benefitsyoumakeavailabletothem.It’saprovenfactthatthemoreemployees understand their benefits, the more they appreciate them.

Thathelpsyouhavesatisfiedemployees,whichresultsinstrongeremployee retention — another thing that’s becoming more challenging these days.

The world of employee benefits grows more complicated every year.

Firms that communicate effectively are 4 times more likely to report high levels of employee engagement versus firms that communicate less effectively.

Watson Wyatt -2007/2008 Communication ROI Study™

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We can help you design a � exible employee bene� ts package that � ts the needs of your business as well as your employees. This enables you to build a more loyal and satis� ed workforce and, ultimately, a stronger business.

We come to your worksite and spend 1-to-1 time with each employee to provide simple, straightforward advice about the bene� ts they have — and those they may need to � t their individual lifestyles and budgets.

And we do it all at no direct cost to you.

Only through Colonial Life can you � nd these bene� t solutions all together in one place. Colonial Life is a single-source provider of:

Your business matters — to you and to us. Making bene� ts count for your business. . .that’s Colonial Life.

Bene� ts counseling to help each employee understand and appreciate bene� ts available at work.

Enrollment optionsthat save time and money.

Insurance products tailored to personal needs.

Bene� t Solutions That Count

After all, Colonial Life is all about

making bene� ts count with options that mean the most to you. And we provide these services at no direct cost to you.

Count on Colonial Life’s Bene� ts Communicationto help your employees understand and appreciate what you do for them.

Our custom bene� ts communication materials — designed to � t your company’s and your employees’ speci� c enrollment needs — can help your employees better understand their bene� ts.

• Announcement letters and fl iers

• Brochures

• E-mail campaigns

• PowerPoint presentations

• Spanish materials

Our trained bene� t counselors meet individually with your employees to review the available bene� ts in a way that is easy to understand, discuss their own personal situation, and enroll them through our own enrollment technologies.

Our ability to provide consistent, clear communication through 1-to-1 meetings with employees helps ensure they understand the bene� ts available to them, which may create much greater employee satisfaction. Employees have the chance to con� dentially review their current bene� ts, consider new options, and most importantly, see how their choices will a� ect their paycheck.

Colonial Life’s industry-leading bene� ts communication and enrollment capabilities are making bene� ts countfor employers throughout the country.

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Personal salary illustrationsoutline the employees’ bene� t selections and how each a� ects their paycheck, so there are no surprises later on when the � rst deductions are made.

outline the employees’ bene� t selections outline the employees’ bene� t selections and how each a� ects their paycheck, so there are no surprises later on when the

Personal salary illustrationsoutline the employees’ bene� t selections

Bene� ts Communication

Bene� t statements provide a detailed overview of the bene� ts you contribute to or provide, so employees can see the true value of their bene� ts package. It’s their “hidden paycheck” so to speak. They’ll also see the dollar amounts that count toward additional bene� ts such as vacation days, parking passes or a paid uniform program.

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Election forms provide a detailed accounting of each employee’s selections and contributions. It’s a � nal clari� cation of the bene� t selections and the cost involved.

Bene� ts Communication

Count on Colonial Life to make your Enrollmenteasy, streamlined and e� cient.

When planning and conducting each enrollment, we serve as the bene� t counselors for working Americans and provide straight-forward advice to help employees understand and appreciate their bene� ts. And we work with you to determine which of our enrollment options will best meet your business needs.

A Personal Touch And Easy-To-Use Enrollment Technology

Colonial Life’s traditional 1-to-1 enrollments o� er the most employee engagement and best opportunity for decision-making support. To help educate and counsel your employees on their bene� t needs, we come to your worksite and spend 1-to-1 time with each employee.

In cases where employees work in the � eld, are constantly mobile or are in secured locations, our Call Center provides another 1-to-1 option. Employees can simply call our toll-free number and a Call Center Associate will educate the employee about the bene� ts available, answer the employee’s questions and lead them through the enrollment process.

We also o� er the option of co-browsing. It’s the same as a 1-to-1 enrollment but conducted over the Internet with a Colonial Life bene� ts counselor.

Self enrollment and group meetings o� er alternative options that are available to access employees who work remotely or are not able to meet with a bene� ts counselor. Our pre-enrollment communications can introduce employees to our simple web-based enrollment system and the steps they need to follow.

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All Powered by Harmony®Whichever option best � ts your needs, the web-based technology that powers all of our enrollments is our simple-to-use Harmony® system, which features online and o� ine capabilities.

Effi cient Enrollments

Count on Colonial Life’s Personal Insurance Productsto give you � exibility in providing the bene� ts that make the most sense for your employees.

Expenses covered by health insurance

Our products o� er choices to help � ll in the gaps

• Co-pay

• Deductibles

• Over-the-counter medications/supplies

• Non-medical expenses

At Colonial Life, we focus on providing employers with the products and services that best meet the needs of individual working Americans.

Our bene� t counselors can show you how Colonial Life’s personal insurance products and services allow your business to:

• Off er new coverage options, at no direct cost to your business.

• Allow employees to pay for the coverage through the convenience of payroll deduction.

• Enjoy employer tax savings and provide tax savings for your employees by pre-taxing through Section 125.

• Help your employees pay for what their health insurance doesn’t.

By packaging core bene� t o� erings with our personal insurance products, you can enhance your bene� ts program and help employees � ll the gaps in their individual coverage. They can apply and pay for the protection they feel they need the most.

Making bene� ts count with Colonial Life’s quality, a� ordable personal insurance products is just smart business.

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• Short-Term Disability• Life• Accident• Cancer and Critical Illness• Hospital Confi nement

Indemnity• Limited Benefi t

Medical Plan

Employer-Sponsored Core Benefi ts• Group Major Medical

• Group Life

• 401(k)

• Vacation/Sick Leave

We o� er the followingpersonal insurance products:

Personal Insurance Products

Superior Services That Make SenseCount on Colonial Life’s superior services to make your administrative life easier.

We provide services that � t your needs and can help you enhance and better manage your bene� ts program.

Through our strategic alliances, Colonial Life can provide you with Premium Only Plan (POP) and Flexible Spending Account (FSA) administration services to help ensure you are in compliance with Section 125 provisions and regulations, while reducing taxes for both you and your employees.

Without Flex With Flex

Gross Pay $1,000.00 $1,000.00

Pre-taxed Reduction (Major Medical)

- $0.00 - $180.00

Taxable Amount $1,000.00 $820.00

FICA, Federal Tax and State Tax

- $202.02 - $156.30

Post Tax Deduction (Major Medical )

- $180.00 - $0.00

Spendable Income $617.98 $663.70

Sample Premium Only Plan Deductions*

Savings Per Period $45.72Total Annual Savings $1,097.28 *Based on 24 pay periods

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With an FSA, employees have the � exibility to add pre-tax dollars to reimbursement accounts and help with the cost of quali� ed expenses.

Dependent Care Reimbursement Accounts let employees pre-tax out-of-pocket expenses for dependent care that allow employees and/or their spouses to work, such as day care expenses, after-school care expenses for children under age 13, and care for a dependent adult incapable of self-care.

Medical Reimbursement Accounts let employees pre-tax out-of-pocket expenses not covered by health insurance plans. This is a great way to help your employees cope with the higher deductibles and co-payments in today’s medical insurance plans. Examples include dental, vision, health plan co-pays, prescription drug co-pays and even some quali� ed over-the-counter medications.

Before Dependent Care FSA

After Dependent Care FSA

Gross Pay $1,000.00 $1,000.00

Pre-tax Dependent Care Reduction

- $0.00 - $110.00

Taxable Income $1,000.00 $890.00

FICA, Federal & State Taxes

- $202.02 - $173.56

Net Pay - $797.98 - $716.44

Dependent Care Expense

- $110.00 - 0.00

Spendable Income $687.98 $716.44

Sample Flexible Spending Account Deductions*

*Based on 2008 South Carolina Tax Tables

Colonial Supplemental Insurance • 9Superior Services

The ColonialConnect for Plan AdministratorsSM website is designed exclusively for our account plan administrators. It’s easy and saves time by allowing you to view your bill online, conduct billing transactions, update employee information, download claim and service forms, e-mail key account service areas, and much, much more.

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CCH HRAnswersNow® is a direct link through ColonialConnect to CCH’s (Commerce Clearing House) HRAnswersNow website. This site provides valuable information regarding human resource policies and guidelines as well as state and federal laws and regulations explained in everyday language.

Superior Services

Our E-Services are available through the secured ColonialConnect site to help make your job easier and eliminate tedious paperwork. You can view and pay your bill online, but better yet, take advantage of our paperless billing service — Ez Billing — which allows us to reconcile your bill for you.

“9 in 10 Colonial Life claimants are

satis� ed with claims service overall

& would recommend Colonial Life

to others.” 2009 LIMRA Customer Satisfaction Survey

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Technology is critical in today’s business world, but the true de� nition of service lies within people.

Our customer service team provides fast, hassle-free and reliable service – for you and your employees. Bilingual service specialists are also available for our Spanish-speaking customers.

We provide you with service centers and automated, toll-free customer service phone lines around the clock that are dedicated to Colonial Life plan administrators. Our � exible services — including fax, phone, e-mail and online submissions — help lessen your administrative responsibilities.

Our accessible, professional and caring customer service teams understand the needs of employers and employees alike and treat both with the courtesy and knowledge they expect.

Colonial Life is helping you make bene� ts count with services like these — at no direct cost to you.

Long-Term Relationships

Approximately 65% of Colonial Life’s new premium historically comes from existing business each year.

Source: Colonial Life records, 2008

Superior Services

Next Steps:

• Complete new account information and schedule a welcome call with the plan administrator.

• Obtain employee census information to build a database for communicating bene� ts and salary illustrations.

• Schedule group enrollment meetings.

• Schedule 1-to-1 meetings.

Let Colonial Life provide you with the personal insurance products and superior services you can count on to make your business a success.

coloniallife.com

Colonial Life 1200 Colonial Life BoulevardColumbia, South Carolina 29210coloniallife.com

4/10 59665-8

Colonial Life products are underwritten by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand.

Making benefits count for you and your employees... that’s Colonial Life.