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Selling Individual Disability Insurance to Small Business OwnersFor use in New York only for producer training. Not for use with consumers.

The Standard Life Insurance Company of New York

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Small businesses are key to the nation’s well-being. They account for a significant share of the U.S. economic production.

At last measurement, this U.S. market segment was represented by more than 28 million small businesses.*

Market Profile

*SBA Office of Advocacy.

Frequently Asked Questions. September 2012.

For use in New York only for producer training

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The Need For Disability Insurance

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Business owners are as much at risk of becoming disabled as other professionals, and they have special disability insurance needs. You can help protect themselves and their families with Protector PlatinumSM individual disability income insurance.

It provides a monthly income flow that helps offset the income loss in the event insured business owners experience a disabling illness or accident.

Individual Disability Income Insurance For Business Owners

For use in New York only for producer training

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Business Owner Discount

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The Business Owner Discount provides 15% savings off gender-distinct rates to qualifying business owners with Protector Platinum policies.

Qualifying* business owners

• own at least 20% of their business

and

• have been financially successful for at least two years under the current business arrangement as supported by the appropriate business income documentation

* Not available to medical or dental occupations, (2P, 3P, 4P occupation classes), chiropractors, long haul xxtruck drivers, or those listed under Financial Services and Real Estate, or as NO in the occupations …listing in The Protector Series Product Guide, form 9251REF SI/SNY

Business Owner Discount

For use in New York only for producer training

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Newly Self-Employed Business Owners

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• Newly self-employed business owners with work experience in the same professional capacity may be eligible for individual disability income insurance coverage based on their historical W-2 earnings.

• Insurable income is based on 75 percent of each individual’s final, annual earnings rate as a non-owner employee in the same profession as his or her new business.

• This is available to occupation classes 5A, and 4A, as well as to 4P, 3P and 2P physicians.

• Maximum individual disability income Issue & Participation Limit is $10,000 for 5A and 4A occupation classes, and as published for 4P, 3P and 2P physician occupation classes in The Protector Series Product Guide.

Newly Self-Employed Business Owners

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• Other occupation classes may also be eligible with a maximum IDI Issue & Participation of $1,000.

• The Standard reserves the right, on a case-by-case basis, to request additional financial information or modify its underwriting approach.

• This program is not available to those listed as “No” in the Occupation Classification List in The Protector Series Product Guide.

Newly Self-Employed Business Owners

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To be eligible the business owner:

• established a new business within the past 12 months

• is actively involved in the operation of the business

• is actively generating revenue at the time of underwriting

• has been employed in the same professional capacity for at least three years as a non-owner employee immediately before becoming an owner, earning at least $50,000 annually

• has provided documentation of two years’ prior income. Bonus income may be included depending on occupation, bonus history, and how the bonus was generated. Fluctuating income may be averaged.

Newly Self-Employed Business Owners

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Business Owner Earned Income Enhancer

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The Earned Income Enhancer allows business owners to qualify for up to $2,000 in additional coverage (within issue and participation limits) than non-business owners in the same occupation class.

Earned Income Enhancer

For use in New York only for producer training

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Business Owners must:

• own at least 20% of the business

• have been financially successful for at least the last two years under the current business arrangement, as supported by appropriate business income documentation.

Earned Income Enhancer

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• To determine the coverage available with the Earned Income Enhancer, use the calculation below:

Earned Income x 120%

• The amount of additional coverage cannot be greater than $2,000 per month and the total coverage must fall within the occupation’s issue and participation limits.

Earned Income Enhancer

For use in New York only for producer training

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The Earned Income Enhance is not available to

• medical and dental occupations,

• podiatrists,

• chiropractors,

• long haul truck drivers

• those listed under Real Estate or as xx“No” in the Occupation Classifications xxList of The Protector Series Product xxGuide.

Earned Income Enhancer

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Premium Discounts

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Premium discounts are provided to help solicit multiple applicants.

Discounts available are:

• For Multi-Life Groups• For Business Owners• For Guarantee Issue Groups• When Protector Platinum is sold in

conjunction with The Standard’s Group Long Term Disability insurance (LTD)

Premium Discounts

* The Protector in California

For use in New York only for producer training

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10% premium discount

• Employer-Based Multi-Life groups are generally defined as 5 or more lives employed by the same employer, 2 or more in some circumstances for business owners

• Employer-Based Multi-Life groups can be as few as two lives so long as the business owners participating:

• are each at least a 20% owners of the same business• purchase policies with combined pre-discounted annual

premium of at least $5,000*• meet all other provisions related to timing of the employer-

based multi-life discount

Employer-Based Multi-Life Discount

* Or less, if both purchase the maximum benefit on both policies

For use in New York only for producer training

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• A 10% Multi-Life Discount for Preferred Producers is awarded to producers who have placed The Standard’s individual disability insurance policies for five or more unique individuals.

• Please see the Preferred Producer Multi-Life Discount Guidelines, form 17056 for details.

Preferred Producer Multi-Life Discount

For use in New York only for producer training

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The Business Owner Discount provides 15% savings off gender-distinct rates to qualifying business owners with Protector Platinum policies.

Qualifying* business owners

• own at least 20% of their business

and

• have been financially successful for at least two years under the current business arrangement as supported by the appropriate business income documentation

*Not available to medical or dental occupations, (2P, 3P, 4P occupation classes), chiropractors, long haul xxtruck drivers, or those listed under Financial Services, Real Estate or as “No” in the occupations listing in …The Protector Series Product Guide, form 9251REF SI/SNY

Business Owner Discount

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Mandatory (Gender-Neutral)

• 30%, 35% Large Case Discount (100+ lives), or 40% when combined with 5% Cross-Sale Discount with LTD from The Standard

Voluntary (Gender-Neutral)

•15% Goal Participation Met Discount, or 20% if combined with 5% Cross Sale Discount with LTD from The Standard

Discount Options for Protector Platinum Guarantee Issue

Participation Goal varies by case

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When sold in conjunction with The Standard’s LTD, an additional 5% premium discount is applied to Protector Platinum Guarantee Issue disability insurance from The Standard.

Guarantee Issue Cross-Sale Discount

For use in New York only for producer training

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• Benefits may be tax-free

• Incentive pay can be covered

• Policies are portable and individually owned

• There is no offset for Supplemental Social Security or Workers’ Compensation benefits

Benefit Amounts for Guarantee Issue

Availability of discounts, and the number of lives required to obtain a discount, may vary by state. Please see the online Protector Series Reference Product Guide, form 9251REF SI/SNY.

Depending on case profile, the following tables illustrate the monthly benefit amounts that may be offered.

Voluntary

Mandatory

For use in New York only for producer training

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Summary of Protector Platinum Premium Discount Options for Regularly Underwritten DI

Multi-Life Discounts

Employer-Based Multi-Life Discount10% Discount

Preferred Producer Multi-Life Discount

Business Owner Discount

Gender-Distinct Pricing 15% Discount

Multi-Product Discount

Gender-Distinct Pricing 5% Discount

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Summary of Protector Platinum Premium Discounts for Guarantee Issue

Guarantee Issue Discount

Voluntary Gender-Distinct Pricing 15% goal1 discount20% if participation exceeds goal.

Mandatory Gender-Neutral Pricing 30% discount35% large case discount (100+ lives)

Guarantee Issue Cross-Sale Discount

Gender-Neutral Pricing 5% Discount

1. Goal varies by case.

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Please contact us at 800.378.6057 or email getinfo@standard.com.

We are always happy to assist you.

Would You Like Assistance?

For use in New York only for producer training

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The Standard is a marketing name for StanCorp Financial Group, Inc. and subsidiaries. Insurance products in New York are offered by The Standard Life Insurance Company of New York of White Plains, New York. The Standard Life Insurance Company of New York is licensed to solicit insurance business in only the state of New York.

For use in New York only for producer training