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Disability Income Protection from MassMutual At The Plus Group

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                              For Producer Training Use Only

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM        !@#$%^
                                              Agenda
         •   Product Rationale for CA/FL/PR
         •   Product Overview
         •   Radius Riders
         •   I & P limits
         •   Rate Information
         •   Agent Compensation
         •   Sales Support
         •   Competition

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
         Radius Rationale for California, Florida
         and Puerto Rico - Financial Results


         • The financial impact of higher than expected claims in
           California, Florida and Puerto Rico has been substantial.
         • Higher than expected claim costs have cost MassMutual
           $70 million over the 1996 - 98 period.


                               Actual                  Expected                A/E
                               Claims                  Claims                  Ratio
       CA/FL/PR                $203                    $133                    153%
       Other States            $495                    $522                      95%


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
         Radius Rationale for California, Florida
         and Puerto Rico - Financial Results
         • CA/FL/PR morbidity experience has consistently run 50%
           higher than the other states.
         • The CA/FL/PR experience exceeds the other states “across
           the Board” - by gender, waiting period, benefit period,
           occupation class for both individual and multi-life.
            – This is true for new products, dispelling the myth that we are
              suffering from past sins.
            – This is true for recent issue years even though we have
              tightened underwriting.
            – This is true for both MML and CML blocks.
         • Our competitors have also suffered large CA/FL/PR losses
           and have taken similar steps to address the business
           problem.
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
         Radius Rationale for California, Florida
         and Puerto Rico - Pricing Strategies
         • Recognition that CA/FL/PR subsidy cannot be eliminated
           solely by increasing premiums.
               – It would require a 55% rate surcharge to eliminate the CA/FL/PR
                 subsidy.
         • Reduce risk. Emphasis is placed on reducing benefits
           versus only increasing premiums.
         • Maintain higher compensation.
               – We could have reduced compensation to maintain lower rates, but
                 Field input showed a preference to maintain higher comp with
                 higher rates.
         • Maintain a competitive position in CA/FL/PR that is
           comparable to our position in the other states while
           maintaining sales growth consistent with other states.
         • Be competitive in the multi-life market.
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                       Radius: Base Product
         • Non-cancelable & guaranteed continuable to age 65
         • Base policy provides cost-effective total disability
           only protection
         • Your occ. protection if not working in a new job
         • Extended Partial benefits by rider with strong recovery
           benefits
         • Radius and riders available to all occupation classes
         • Benefit periods: 2 years, 5 years, or age 65
         • Issue ages: 18-64
         • 24 month mental & nervous limitation per disability
         • Unisex for multi-life sales
         • Sex-distinct rates for individual and association
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
            Definition of Total Disability
         • Policy must be in force
         • Condition caused by a sickness or injury
         • Insured cannot perform the main duties of
           his/her occupation
         • Insured is not working at any other
           occupation
         • Insured must be under a doctor’s care


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                Waiting Periods
         •   60 days
         •   90 days
         •   180 days
         •   365 days
         •   730 days*

         *Not available in PA, NJ, CT, VT,CA, AR, ID, IA, KS, NJ, OK, PA, SC, VA, WA, WV




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
           Mental & Nervous Limitation
         • 24 month per claim mental disorder
         • Full benefits paid if hospitalized
         • No aggregate benefit limit over life of policy
         • Limitation may be removed if:
               – Employer paid
               – 20+ life multi-life case
               – 10% extra premium
               – Prior underwriting approval through Maximum Benefit
                 Period Endorsement

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                           Waiver of Premium

         • After 90 days of total or partial disability
         • Premiums waived for length of disability
         • Premiums paid during that 90 days will be
           refunded




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                    Rehabilitation
         • Reimbursement for covered expenses
           incurred
         • Pre-approved rehabilitation program
         • Mutually agreed upon
         • No stated maximum




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
        Extended Partial Benefit Rider
         Purpose: Provide partial benefits for a long duration
           if return to same or new work, but experience at
           least 20% income loss.
         • Available to all occupation classes
         • Benefit period same as base policy
         • Benefit amount based on loss of earnings (min. 20%)
         • Includes full recovery benefit
         • Issue age 18-60
         • Required w/ GSR

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                              Recovery Benefit
         • Included with Extended Partial Disability
           Rider
         • Continued loss of income of at least 20%
         • Demonstrated relationship required
         • Insured is fully recovered and working in
           his/her occupation
         • Maximum benefit period applies


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                 Limitations & Exclusions
         • Radius does not cover disabilities caused or
           contributed to by:
               – War, declared or undeclared
               – Normal pregnancy or childbirth, except as defined
                 under the definition of sickness in the policy
               – Undisclosed pre-existing conditions
               – Policy may be suspended if client enters military
                 service
               – Mental disorder limitation, unless endorsement
                 attached
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                   Radius Riders
        •   Social Insurance Rider (SIR)
        •   Partial Disability (6 months) Benefits Rider
        •   Extended Partial Disability Benefits Rider
        •   Short Term Rider (STR)
        •   Future Insurability Option (FIO)
        •   Cost of Living Adjustment Rider (COLA)
        •   Group Supplement Riders (GSR)
        •   HIV Rider
        •   Maximum Benefit Period Endorsement
        •   Managerial Duties Endorsement

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                             Radius Riders
                            Available in FL/PR
                                                                      Maximum            Managerial
                                                                    Benefit Period         Duties
                                                                    Endorsement         Endorsement




                               Extended Partial Rider                                         Partial
                                                                                             (6 Mos.)


                                      Social Insurance Rider (SIR)

                                 Radius Base Coverage


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM              !@#$%^
                Social Insurance Rider (SIR)
         Purpose: Lower premium by part of policy benefits
           contingent upon not qualifying for:
               –   Social Security
               –   State Cash Sickness
               –   Worker’s Compensation
               –   We pay if they do not
         •   Maximum benefit $1,350/month
         •   Optional for 5A, 4A, 3A*
         •   Required for 2A and A
         •   Issue age 18-60
         •   Not available in CA
         *   Required in all classes in RI, HI, NY, NJ, and PR
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
        Partial Disability Benefit Rider
         Purpose: Provide partial benefits for a 6 month
           duration, but return to work part time and can
           perform some, but not all duties of occupation.
         • Benefit period: 6 months
         • Benefit amount: 50% of monthly benefit
         • All occupation classes
         • Issue age: 18-60


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                       Short Term Rider (STR)
         Purpose: To close short term gaps of existing group
           LTD coverage
         • Waiting period: 60, 90 and 180 days
         • Benefit Period: to six months*, to one year**
         • Up to 2 STR’s may be on same policy
         • All occupation classes
         • Issue age: 18-64
         *Not available in VA **Not available in VT
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
Future Insurability Option Rider (FIO)
         Purpose: To provide future benefit increases to
           keep in line with salary increases without
           evidence of medical insurability.
         • Max. rider “pool” = 2 x Base amount, up to a max. of
           $5,000/monthly benefit
         • The FIO “pool” can be increased during any option period
           prior to age 55 with full underwriting
         • Series rates in effect at the time of increase
         • Issue ages 18-55
         • Option periods annually up to age 60
         • Option date can be different than anniversary date
         • Available to all Occ Classes
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
    Cost Of Living Adjustment Rider
                                                    (COLA)
          Purpose: To increase benefits while disabled
            and on claims to keep pace with inflation.
          • Provides 3% compounded increases after 12
            months of disability
          • No cap on increases over life of policy
          • Issue ages: 18-60
          • Available to all occupation classes
          • Only available w/ age 65 Benefit Period
          • Increase Buy-Up Provision
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
          Group Supplement Rider (GSR)
          Purpose: To enhance partial benefits when
          “wrapping” around a group LTD plan.
          • Provides a benefit if insured has min. 20% income
            loss due to disability
          • GSR A: Pays benefit if insured working in regular
            occupation
          • GSR B: Pays benefit if insured working in a new
            occupation
          • Issue ages 18-60
          • Benefit period must be to age 65
          • Not available with Managerial Endorsement
          • Extended Partial Required
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                           HIV Rider
        Purpose: To provide Medical and Health Care
          Professionals with a transitional benefit while
          making a career decision.
        • Provides a monthly benefit if tested positive for HIV
              – Whether symptomatic or not
              – Regardless of how virus was contracted
        • Available to Medical & Health Care Professionals
          Only
        • Waiting period: None
        • Benefit period: 24 months
        • Benefit amount: $2,000-10,000/month
        • Issue ages: 18-60
        Not available in NY, NJ, PA, GA, IN, ME, MI, MN, NC, NH, ND, OR, VA, WA, WI
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
        Managerial Duties Endorsement

         Purpose: Allows more favorable occupation
         class for individual with strong managerial
           responsibilities and with less than 25%
           manual duties.
         • Changes definition of disability to focus on critical
           managerial duties (difficult to replace) instead of
           manual duties (easy to replace)




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                              Age 65+ Contract
         Purpose: To provide a contract for applicants
         ages 65-70 on a new issue basis or as a
           conversion.
         • 30 hours per week and not disabled
         • Total disability protection only
         • Benefit period: 2 years
         • Premiums conditionally renewable annually
         • Maximum issue amount: $7,500/mo.
         • Maximum Participation Limit: $10,000/mo.
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                  Individual & Association
                    Limits for CA/FL/PR
       Occ Class             Max. Issue           Max. Part.           Max. Issue Max. Part.

                                 18 - 60              18 - 60                61+             61+

             5A                    7,500              10,000                 7,500           10,000
             4A                    7,500              10,000                 7,500           10,000
             3A                    7,500              10,000                  7,500           7,500
             2A                    7,500                7,500                 5,000           5,000
              A                    5,000                7,500                 2,000           2,000

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM            !@#$%^
         Multi-Life Limits for CA/FL/PR
       Occ Class             Max. Issue           Max. Part.           Max. Issue Max. Part.

                                 18 - 60              18 - 60                61+             61+

             5A                  10,000               15,000                10,000           10,000
             4A                  10,000               15,000                10,000           10,000
             3A                  10,000               10,000                10,000           10,000
             2A                    8,000              10,000                  5,000           5,000
              A                    5,000                8,000                 2,000           2,000

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM            !@#$%^
                 I & P Limits for CA/FL/PR
                             DI REPORTED CASES IN CA, FL AND PR
                                 BETWEEN 1/1/98 AND 12/31/98

                $7500 or more           Less than $7500                   Total               Percentage
                                                                                             of Sales over
                                                                                                 $7500
     State Count          Face        Count        Face         Count     Face Amount
                         Amount                   Amount
     CA         84      833,956       1,121      2,260,329      1,205       3,094,285            7%
     FL         19      208,195        432        771,095        451         979,290             4%
     PR          2       21,100         59        167,871         61         188,971             3%
     Total     105     1,063,251      1,612      3,199,295      1,717       4,262,546            6%




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM                   !@#$%^
                                Radius Pricing
                                            Dividends
         • Radius is a dividend paying contract
         • Dividends, if available, become payable at
           the end of the 6th year
         • Dividends are projected to be 10 percent
           per year for the life of the policy


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                          Radius 5A Rates

          90 Day Wait, Age 65         Radius              XLS -92                    MM9500          PLA Cornerstone   Paul Revere 975    NML
         benefit period, $4,000
            monthly benefit                                                                                                     Total +   Total +
                                  Total   Total + EP   Total     Total + EP       TD          DI       Total + Res     Total
             Non-Smoker                                                                                                          Res       Res
                                                                               Male
                        35        1,342        1,721   N/A          N/A         1,293     1,615           1,501        1,244     1,353     1,579
            5A
                        45        2,164        2,830   N/A          N/A         2,062     2,568           2,432        1,955     2,131     2,287
                                                                              Female
                        35        2,073        2,677   N/A          N/A         2,050     2,589           2,148        1,928     2,101     2,427
            5A
                        45        2,920        3,772   N/A          N/A         2,835     3,563           3,060        2,857     3,104     3,163
                                                                              Multilife
                        35        1,058        1,334   1,019       1,142         N/A       N/A            1,042        1,040     1,318     1,466
            5A
                        45        1,646        2,051   1,573       1,763         N/A       N/A            1,628        1,594     2,061     2,071
         Multilife
                                  * 15%     * 15%      10%          10%                                   20%          15%        15%      15%
         Discount

                                                               * Showing lowest discount available
                                                                 Also have 25% & 35% discounts
                                                                 Nicotine Surcharge is 25%




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM                                                          !@#$%^
                                         Radius 4A Rates

         90 Day Wait, Age 65
                                     Radius              XLS -92                  MM9500            PLA Cornerstone   Paul Revere 975    NML
        benefit period, $4,000
           monthly benefit                                                                                                     Total +   Total +
                                 Total   Total + EP   Total    Total + EP      TD          DI         Total + Res     Total
            Non-Smoker                                                                                                          Res       Res
                                                                             Male
                       35        1,458        1,893   N/A          N/A        1,416      1,768           1,586        1,325     1,443     2,147
           4A
                       45        2,370        3,049   N/A          N/A        2,189      2,727           2,610        2,120     2,311     3,147
                                                                            Female
                       35        2,258        2,887   N/A          N/A        2,236      2,823           2,350        2,090     2,278     2,427
           4A
                       45        3,138        4,059   N/A          N/A        3,000      3,775           3,337        2,943     3,211     3,163
                                                                            Multilife
                       35        1,142        1,468   1,074       1,201       N/A        N/A             1,121        1,125     1,428     2,007
           4A
                       45        1,760        2,173   1,652       1,850       N/A        N/A             1,751        1,727     2,235     2,867
        Multilife
                                 * 15%     * 15%      10%          10%                                   20%          15%        15%      15%
        Discount

                                                              * Showing lowest discount available
                                                                Also have 25% & 35% discounts
                                                                Nicotine Surcharge is 25%




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM                                                         !@#$%^
                                         Radius 3A Rates

         90 Day Wait, Age 65         Radius              XLS -92                  MM9500            PLA Cornerstone   Paul Revere 975    NML
        benefit period, $4,000
           monthly benefit                                                                                                     Total +   Total +
            Non-Smoker           Total   Total + EP   Total    Total + EP      TD          DI         Total + Res     Total
                                                                                                                                Res       Res
                                                                             Male
                       35        1,850        2,057   N/A          N/A       1,922       2,354           1,774        1,671     1,848     1,971
           3A
                       45        2,954        3,360   N/A          N/A       2,826       3,480           2,859        2,656     2,941     3,031
                                                                            Female
                       35        2,847        3,153   N/A          N/A       2,929       3,665           2,658        2,644     2,928     3,087
           3A
                       45        3,992        4,592   N/A          N/A       3,796       4,748           3,673        3,694     4,093     4,251
                                                                            Multilife
                       35        1,458        1,641   1,284      1,439        N/A        N/A             1,249        1,416     1,575     1,844
           3A
                       45        2,174        2,558   1,926      2,155        N/A        N/A             1,935        2,161     2,453     2,762
        Multilife
                                 * 15%     * 15%      10%          10%                                   20%          15%        15%      15%
        Discount

                                                              * Showing lowest discount available
                                                                Also have 25% & 35% discounts
                                                               Nicotine Surcharge is 25%




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM                                                         !@#$%^
                          Radius Discounts
         First Year Life/DI Discount
                  5 percent discount applied to first year annual
                   DI premium
                   Supports cross sale of life insurance and DI
                   Full compensation is applied to reduced first
                   year premium

                                                                   Life Sales

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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                           Radius Discounts
                                      Multi-Life Discounts

                                   3 - 20 lives                                50% 1st Year
           15 percent              Employer Sponsorship                        Compensation


                                   21+ lives Employer
                                   Sponsorship                                 40% 1st Year
           25 percent                                                          Compensation
                                   21-100 lives Employer-pay


                                   100+ lives                                   30% 1st Year
           35 percent              Employer pay only                            Compensation


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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM     !@#$%^
                                Radius Career
                                Compensation
        FYC: Ages 18 - 64 : 50%
        Renewals:

                                                        Years 2 - 7             8 - 10       11 +
                              Individual &
                              15% Multi-life                 10%                  5%         2%
                              25% Multi-life                  7%                  2%         2%

                              25% Multi-life                  5%                   2%        2%




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM          !@#$%^
                                  Radius Career
                                  Compensation
         •        Bonus:

         •        Tier 1 - Production of $20,000 - $39,999 in first-year
                  premium = 5% supplement

         •        Tier 2 - Production of $40,000 - $59,999 in first-year
                  premium = 7% supplement

         •        Tier 3 - Production of $60,000 - $79,999 in first-year
                  premium = 9% supplement

         •        Tier 4 - Production of $80,000 and above in first-year
                  premium = 12% supplement
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                                   Sales Support




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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
               You Are Your Competition
         • You have the opportunity to sell an
           industry-leading portfolio with extremely
           strong compensation.
         • In most cases, according to MassMutual
           clients, your competition is not offering
           your clients DI.
         • If you don’t offer it to your clients, then
           You are the roadblock to your client
           having DI or a hole in their protection
           portfolio.
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Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^
                         We Want Your Sales
         • Your clients need DI.
         • Although morbidity is a problem in FL/PR,
           strong Field Underwriting will drive the
           future of sales in your state. Your efforts
           in this respect DO make a difference.
         • Bottom Line: Be meticulous with your DI
           sales, but do sell DI. It’s a win-win for
           both you and your client.

^
Disability Income Protection from MassMutual. At the Center of Your Financial Security. SM   !@#$%^

				
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