the colonial opportunity

Ask yourself …

Where do you want to be in 5 years?

3

The Company

Incorporated in 1939 in Columbia, S.C.Pioneered worksite benefits via payroll deduction.50,000 accounts with more than 2.5 million policies in force.1

Offers benefit solutions for employers in one neat package: excellence in communications, enrollments, service and product offerings. Products sold in 49 states. Affiliate company2 markets similar products in New York.Highly rated, financially sound.

In-force premium of more than $1 billion.1

2007 sales of $334.9 million.1

1 Colonial Life & Accident Insurance Company corporate records as of year-end 2007.2 The Paul Revere Life Insurance Company.

4

Colonial Life

Here is what industry people are saying about us …

Colonial Life was chosen a 5-time winner in Benefits Selling magazine’s 2007 Readers’ Choice Awards! Brokers selected Colonial Life as their top pick in the following categories …

The carrier that communicates best with brokers.The most innovative carrier in the marketplace.The carrier that offers the best back-office support. The best critical illness plan in the marketplace.The best whole life insurance product in the marketplace.

5

Explosive Growth

Our explosive growth is based on corporate America's need:

For choice-driven benefitsServices offered on a voluntary basis

• Helps reduce the pressure for future company-paid plans.

• Helps strengthen a companies benefits and expands services typically costing thousands of dollars in a tight labor market.

• Introduces choice and portability at the employee level.

• Allows both employer and employee to access the power ofpre-tax dollars.

6

The Products & Services

The Colonial Advantage – Three Companies in One.

1. A Benefits Communication Company

2. A Nationally Certified “Turnkey” Enrollment Company

3. An Individual and Group Insurance Product Company

7

Benefit Communication ProcessOne-on-

One

Meetings

• Private

• Professional

• ConsultativeSource: LIMRA Marketer - Volume 13 - Number 1 2006

Group Meeting

sSalary

Illustrations, Benefit

Statements and Election

Forms

8

Enrollment Suite

Variety of enrollment services:

One-to-one sessions with personalized benefit statements and salary illustrations.Group meetings.Multi-locationand multi-stateenrollmentcapabilities.Options forremoteemployees orstaggered shifts.

9

A ComprehensiveProduct Portfolio

Life Insuranc

e

Accident Insuranc

e

CancerInsuranc

e CriticalIllness

Disability Income

HospitalConfinemen

t

Quality Products from one source allows you to

Maximize enrollment choices.

LimitedMedical

10

Great Service

9 in 10 Colonial Life claimants are satisfied with claims service overall & would recommend Colonial Life to others.

2007 LIMRA Survey

11

The Marketplace

Health care premiums are seriously outpacing inflation

The Henry J. Kaiser Family Foundation. Employee Health Benefits: 2005 Annual Survey

3.5%Rate of inflation

9.2%Healthcarepremiums

12

The Need in Marketplace

Employees prefer to buy benefits at work – 2 to 1.1

77% of employees prefer to meet face-to-face. 2

97% of employers and employees have a growing interest in products that help cover deductibles and out-of pocket expenses. 3

1 2005 MetLife Employee Benefits Trend Study2 2005 MetLife Employee Benefits Trend Study3 Worksite Product Trends, Eastbridge Consulting Group, Inc., 2005

13

Non-Accounts97.0%

Colonial Accounts

3.0%

An Abundant Marketplace

• Large database of D&B prospects provide regular activity and opportunity

• A proven marketing system provides well developed leads for direct contact

Who Joins Our Team

Let’s look at a profile …

15

Colonial Life Associate Profile

The Ideal CandidateHigh IntegrityWell thought of in the communityPeople skillsGood communicatorOrganizedManages time wellService mindedCoachable and willing to adhere to a proven system

16

A Fantastic Career

For the right candidateVery realistically

$30,000 to $60,000 your 1st year$8,000 to $15,000 increases annually

Management Opportunities“Fast Track” through our Assistant Development Manager Program

17

Adding Value To Company Benefit Plans Through A

Consultative Style

18

Referral bonus of 4% to 6% override on all business

generated by people you have recommended for an

appointment to Colonial Life.

Referral bonus of 4% to 6% override on all business

generated by people you have recommended for an

appointment to Colonial Life.

Colonial associates are independent agents and are paid solely by commissions, renewals/overrides and earned bonuses.

Top commission potential including residual income.

Top commission potential including residual income.

Let’s see… top commissions,renewal income, bonuses

just for recommendinggood people you know andoh yes, trips to wonderful

Places!

Let’s see… top commissions,renewal income, bonuses

just for recommendinggood people you know andoh yes, trips to wonderful

Places!

“No limit" to Income and Financial Rewards

19

Colonial College

Classroom and field training• Field Training Systems… A system

for success that duplicates what others have done to be successful. You will be working side by side with our best, observing and doing everything from prospecting and selling to service.

• Classroom Training… Learn Colonial Life’s “needs based” selling, product knowledge, Section 125 Certification, and Enrollment certification.

• Ongoing Training… Through a system of weekly communications combined with Territory and District General Agent’s meetings we continue your development side-by-side.

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Commissions vary depending on your role

AccountOpener

17.5% – 37.5%

25% Average 36.5 – 56.5% 25% Average 36.5 – 56.5% TotalTotal

Unique Approach to the Market

AccountCoordinator

4%

Account Enroller

15%

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50 Employees50 Employees* 50% Enrollment (CLA Average)* 50% Enrollment (CLA Average)

25 Employees Participate25 Employees Participate$500 Annual Premium / $500 Annual Premium /

Employee (CLA Average)Employee (CLA Average)

$12,500 Total Annual Premium$12,500 Total Annual Premium

Opener Commission (25%) = $3,125Opener Commission (25%) = $3,125

Commission Advanced Commission Advanced (@70%) =(@70%) =

This is not a guarantee but for illustrative purposes only. Actual commissions will vary depending on actual results.

CompensationOpener Commissions

$2,187.50

* Colonial Life’s average for employee participation is between 40% and 50%. For the sake of this example, 50% is being used.

22

$2,187.50 * 2 Cases / Month = $2,187.50 * 2 Cases / Month = $4,375 $4,375

oror

24 / year =24 / year =



$52,500

23

New Account Bonus (YTD)• 24 cases = 9% x $270,000

premium = $24,300

New Account Bonus (QTD)• Averaged opening 6 cases

per Quarter• 3% X $270,000 premium = $8,100

This is not a guarantee but for illustrative purposes only. Actual commissions will vary depending on actual results. Model assumes company average 10% never effect rate.

Compensation Opener Commissions

24

Incentives Exclusively for …

New Start-up OperationsQuick Strike (Tier 3 in 90 days) = $1,250(For opening 3 accounts / $10,000 New

Acct. Opener Premium)

Tier Bonus* = $10,250

* Includes extra $5,000 bonus for 12+ cases and over $120,000 in new acct. opener sales premium

in startup money…for new representatives only!

This is not a guarantee but for illustrative purposes only. Actual bonuses may vary depending on actual results.

$11,500

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CompensationTotal Opener Commissions

CommissionCommission

$ 52,500$ 52,500New Account Bonus (YTD)New Account Bonus (YTD)

$ 24,300$ 24,300New Account Bonus (QTD)New Account Bonus (QTD)

$ 8,100$ 8,100TOTAL Comp & Bonuses

$ 84,900

New Start-up Bonus =New Start-up Bonus =

$ 11,500$ 11,500

This is not a guarantee but for illustrative purposes only. Actual commissions and bonuses will vary depending on actual results.

Total Compensation =

$ 96,400

Total Compensation =

$ 96,400

26

Renewals and Re-enrollment

Renewal: for an Opener (Average) = 4% % * $300,000 = $12,000

Avg. renewal premium collection rate * 70% = $8,400

Re-enrollment: 40% of 1st Year Premium (Average)40% * $300,000 = $120,000 * 25% = $30,000Colonial advance rate * 70% = $21,000

Renewals = $8,400Rework = $21,000


TOTAL = $29,400


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CompensationTotal Opener Commissions

This is not a guarantee but for illustrative purposes only. Actual commissions and bonuses will vary depending on actual results.

If you only achieve ½ the production used in the prior example and open 12 cases with $120,000 in premium:

YOU QUALIFYFOR LEADERSCONFERENCE!

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* Actual commissions and bonuses will vary depending on actual results. Model was based on 24 new accounts opened, average number of 50 employees each, 50% penetration and an average monthly

sales premium per payor of $40.

The Compensation

Year 1Year 1 Year 2Year 2 Year 3Year 3 Year 4Year 4 Year 5Year 5

$96,000$96,000 $108,00$108,0000

$130,000$130,000 $152,000$152,000 $173,00$173,0000

5 Year Rep Compensation Model*

Commissions and bonuses

29

Personal Growth Opportunity

Career Path Opportunities• Territory Sales

Manager• District General Agent

(Public and Commercial Sectors)

• Agency Development Manager

• District Development Manager

• Public Sector Assistant Manager

• Agency Sales Representative (Opener – Enroller and Coordinator roles)

DDMDDM

DGADGA

TSMTSM

ASRASR

ADMADM

30

Travel and Incentives

The Timing

The window of opportunity is open …

32

The Timing

Up to 363,000 U.S. businesses are considering introducing a new voluntary benefit in the near future. Assuming that these employers follow through on their intentions, almost 45 million employees will have access to these new products.1

1 Analyzing the Size and Potential of Voluntary Worksite Benefits, LIMRA, 2007.

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Join a great team

Be an entrepreneur and leader

Name recognition, highly visible, advertising campaign.

Training at all levels of your development from beginning to management.

World class products that deliver the best risk protection value in the insurance industry.

The freedom to build your career your own way … and on your own schedule.

Having no glass ceiling or seniority barriers.

Earning rewards based solely on your efforts and initiative.

34

Ask Yourself

1. If I do nothing and stay with my current job, will I be where I want and need to be in 5 years?

2. With Colonial Life, can I earn the money I want while developing future financial security?

3. Will I receive the training necessary to become successful?

4. Will I feel good about my career, helping people?

35

It’s Your Move

1. You need to consider the Colonial Life opportunity and discuss it with your significant other.

2. We need to look your “Map to Success” plan and arrange training schedules.

3. Call us back within the next 48 hours …

We will schedule a formal interview to discuss details. We can even include your

significant other if you like.