Third Quarter 2008 Allan G. Hancock, CLU®, ChFC®, AEP, CEO to Receive Insurance Industry’s Highest Honor Allan G. Hancock, President and CEO committed to the industry and his clients.” Hancock Associates, Inc., specializing in of The Hancock Group, Inc., Altoona, has In 1945, John Henry Russell created employee benefits and using many com - been named the recipient of the 67th the award as a tribute to his father, John panies to provide employers with these annual John Newton Russell Memorial Newton Russell, an influential leader in products. Eight years later, he founded Award, the highest honor bestowed by the the life insurance and financial advisor the Allan Hancock Agency, Inc., bringing National Association of Insurance and industries, who served as NAIFA’s presi - more independence to the operation. Financial Advisors (NAIFA). The award dent from 1916-1917, and was a con - In 1995, Allan joined the Argyle recognizes sustained and meritorious tributing founder of LIMRA Continued on Page 3 service to the life insurance and financial International, The American College and advisor industries. Allan will receive the the Chartered Life Underwriter (CLU®) honor at a gala black tie event during designation. His high standards are per - NAIFA’s Annual Convention and Career petuated in this award, which seeks to Conference, September 9, 2008 in San recognize someone with outstanding per - Diego, California. sonal qualities, unstinting loyalty to the “We are thrilled to give this award to business and exemplary leadership. Allan Hancock,” said C. Robert Brown, Award recipients are selected by a com - Sr., CLU®, LUTCF, AEP, a NAIFA past mittee comprised of officials of several president and chair of the John Newton life insurance and financial services Russell Memorial Award selection com - organizations, past award recipients and mittee. “This award honors the best in the NAIFA past presidents. business, and Allan personifies every - Allan started his financial services thing that agents should strive for, and has career in 1960. In 1963, he established for the last 40-plus years. He is truly his first office. In 1983, he formed Allan G. Hancock

THGI Goes to Niagara Falls We arrived at Victoria Park located Reception boarded the bus for a 4 hour By Ray Kline, Editor, Director of Marketing & PR of THGI along the Niagara River for lunch at noon. tour to show us the sights of Niagara. The This park borders the American and tour included the Welling Shipping On Saturday, May 17, 2008 (5:00 a.m.) Canadian Falls. Canal, where we observed a large oil the office personnel of THGI and their After lunch, a professional licensed tanker being elevated through the locks. spouses traveled by chartered bus to guide from the Rainbow Tour and Then we drove through the many vine - Niagara Falls for sightseeing. yards to Niagara-on-the-Lake, the first capital of Upper Canada. We stepped back in time and viewed the homes, stores and churches of the first settlers. We returned to Niagara Falls via the Niagara River Parkway. Along the way we viewed Fort George, Brock’s Monument at historic Queenston Heights, the world famous Floral Clock, the Hydro Electric Plants, the Niagara Parks Commission’s School of Horticulture, and the Aerocar which many of the group boarded the cable car and viewed the sights over the THG regroups after the “Maid of the Mist” excursion. Continued on Page 5

1618 E. Pleasant Valley Boulevard, Altoona, PA 16602 (814) 944-8849 Fax: (814) 942-7185 Email: [email protected] Reclamere…Beyond Destruction “Reproduced with permission from the Highmark Blue Cross Blue Shield Bulletin” Little did Angie Singer Keating imag - With its growing expertise, Reclamere PPOBlue deductible plans would affect ine that her career would one day involve began to offer assessments of a compa - premiums. doing just that: killing data. Keating is ny’s data protection risk, including physi - “We presented the information at Vice President of Compliance and cal security, regulatory compliance and employee meetings where everyone Security and cofounder of Reclamere, vendor management. could ask questions and learn about Inc., an I. T. asset management company High Stakes options,” Brown says. “I used the analo - located in Tyrone, PA specializing in dig - “When the bank can say, ‘Hand over gy of car insurance because everyone ital data security and environmental com - understands that rates go up when you pliance for retired computer equipment. the keys to your house’, it’s imperative for an entrepreneurial company, any compa - continue to file claims. And just as no one “I recognized the business opportunity ny, to carefully consider each business expects car insurance to cover things like while watching a documentary on the decision,” Keating says. new tires, windshield wipers or oil Discovery Channel in 2000,” she says. changes, no one can expect health insur - “The segment was about how the Y2K When carefully considering the selec - ance to cover everything.” tion of health care coverage, Reclamere problem had created a huge surplus of “We believe in being straightforward computer equipment. Because the com - recognized the advantages of Highmark Blue Cross Blue Shield PPOBlue. “We and taking time to discuss issues that puters contained toxins, such as lead, cad - affect our employees,” Keating says. mium and mercury, they needed to be have employees who rarely use their cov - erage and others whose utilization is “They might not always like the informa - recycled in ways that would not harm the tion, but when they understand the facts, environment.” higher,” says Nikki Brown, Human Resource Manager. “With PPOBlue, they can accept reality – that’s just the At the time, Keating, an electrical engi - we’re able to offer two different plan way it is.” neer, was project manager at a computer deductibles yet still offer the same bene - Morphing the Business company. She discussed her idea with fits.” Joe Harford, who worked in the sales and Reclamere’s original business plan has marketing department; and he, in turn, Until this year, all eligible employees certainly changed since the company spoke with his friend and serial entrepre - had a zero-deductible plan. When the began in 2001. “Our most basic service neur, Bob Dornich. With complementary company’s rates where adjusted, they and the one that most people know us for skills and a viable idea, the three wanted to do something to hold the line remains data destruction, but we’ve cofounders proceeded to develop their on costs. “The money had to come from moved beyond destruction,” Keating business plan and secure funding. somewhere,” Keating says. “Since we says. “Out of our expertise in data Reclamere officially began in 2001. have a profit-sharing plan, our employees destruction grew our expertise in data preferred to add a deductible to their recovery, then security assessments and The Real Issue health plan rather than reduce their prof - forensic capabilities.” They soon discovered that the real its. As it turned out, premiums actually Today, the company services cus - issue was not the obsolete equipment but went down a few dollars, and our tomers throughout the Mid-Atlantic the sensitive data the equipment con - employees were happy about that.” States and exports sanitized computers to tained. The company began to focus on Educating Employees About Costs more than 50 countries. “What’s next the management and destruction of digi - When utilization goes up, rates go up. remains to be seen,” Keating says, “but tal data, becoming familiar with the legis - we’ll continue to morph our business to lation affecting highly-regulated indus - It’s a straight-forward correlation and Reclamere wanted its employees to meet the security needs of our cus - tries, such as health care, banking, insur - tomers.” ance, commerce and education. understand how lifestyle choices can influence the equation. As the Human For more information about “The Sarbanes-Oxley Act and other Resource Manager, Nikki Brown pre - Reclamere, Inc., visit their website at legislation have made data retention and pared a matrix using claims data to show www.reclamere.com. destruction critical issues for corpora - employees how usage was impacting tions”, Keating says. “We help clients The Hancock Group, Inc. is extremely costs and how smart lifestyle choices and proud to be associated with Reclamere, comply with complicated legislation and responsible use of health benefits could educate them about possible breach Inc. and all of the fine people who work reduce them. She also prepared a spread - at this industry. v points.” sheet to show how each of the two

Securities offered through Princor Financial Services Corporation, 800/247-4123, member SIPC. Principal Life and Princor® are members of the Principal Financial Group®, Des Moines, IA 50392. The Hancock Group, Inc. and its affiliated companies are not affiliates of any company of the Principal Financial Group.

2 Allan G. Hancock, CLU®, ChFC®, AEP, CEO to Receive Insurance Industry’s Highest Honor - Continued from Page 1 Group, Inc., an independent marketing Watts section of Los Angeles, California lion and total grant distributions of more organization. A year later, Hancock for underprivileged children, transformed than $2.5 million. Capital Management, Inc., was created to a desolate construction site into a play - His service is further demonstrated by provide fee-based asset allocation and ground area in Tianjin, China (near his community involvement. Allan wealth management services using Beijing) for orphans with special needs, served as Altoona’s mayor from 1980-83. unique and modern investment theories. and built another playground at Trinity As mayor, he was involved in numerous These companies are known collectively Christian Community in Hollygrove, major highway projects. His volunteer as The Hancock Group, Inc. New Orleans that survived Hurricane credits include chair of the Altoona The company earned the 1995, 1996 Katrina in the Fall of 2005. Redevelopment Authority; member of the and the 1997 Professional Growth Award Allan, a member of the American Blair County Chamber of Commerce; by The American College, and in 1998, it College’s Gold Key Society, has a deep chair of the Red Cross; Home Nursing won the Professional Growth Eagle commitment to education. Under his Agency Board of Directors, serving on Award. In 2001, Allan was recognized direction, The Hancock Group, Inc. con - the fund development, finance and invest - with the Small Business Person Award by ducts seminars for continuing education ment committees. As current President of the Small Business Development Center credits for the Central Pennsylvania the Central Pennsylvania Community and Center for Global Competitiveness at Chapter of the Pennsylvania Institute of Foundation Board, he is responsible for the St. Francis University. A year later, he CPAs, St. Francis University, St. Vincent the design and development of the Donor received The Entrepreneur 2002 Award College, and the Pennsylvania State Advised Fund program with more than by the Pennsylvania Business Journal. University. Licensed by the $6 million in assets, $4 million bequests A Life Member of the Million Dollar Commonwealth of Pennsylvania and more than $2 million in grants dis - Round Table, Allan is qualifying member Insurance Department as an instructor, tributed. of MDRT’s Court of the Table. He has Allan served on the Pennsylvania A native of Altoona, Allan and his received the National Quality Award for Insurance Test Development Committee. wife, Marilyn, have three children and the last 33 years and the National Sales He also conducts workshops and confer - five grandchildren. He is active in his Achievement Award (NSAA) for 20 ences and speaks at social, civic and busi - church and his commitment extends years. ness clubs. beyond Sunday to teaching and counsel - Allan Hancock has demonstrated com - Allan is also involved in charitable ing. Allan’s hobbies include: avid reader, mitment to the industry through his activities. As chair of the MDRT follows professional football, and a fan of involvement with many organizations. Foundation, he led an industry-wide the Altoona Curve baseball team. On his He served as NAIFA (then NALU) presi - effort in supporting victims of the 90 acre farm in East Freedom Township dent at the national (1994-95), state tsunamis in South Asia and the victims of he raises Hereford cattle and 25 horses. (1973-74) and local (1968-69) levels. He Hurricane Katrina by mobilizing the He also boards, breeds and trains Rocky is a member and currently past president Foundation’s resources to raise more than Mountain and Quarter Horses at Hancock of the MDRT Foundation Board, as well $1.1 million for relief efforts. He also Stables and indoor arena. as treasurer for the Life and Health was instrumental in creating the MDRT The associates and support staff at Insurance Foundation for Education Foundation’s Global Gift Fund, which THGI are extremely proud of Allan and (LIFE). He served as a member of the provides advisors with a tool to create extend our heartiest congratulations to not American College’s Board of Trustees family foundations for their clients. only a fine individual, but to a wonderful and served on the LUTC Board of Under Allan’s leadership, the program boss as well! v Trustees. Allan and other members of has grown to more than 100 family foun - MDRT, in conjunction with the MDRT dations, with total assets of $8 million, Foundation built a play ground in the future life insurance benefit of $13.1 mil - The Hancock Group, Inc. To Be Inducted Into The Blair County Hall of Fame The Hancock Group, Inc. will be Three other businesses will comprise inducted into The Blair County Chamber the Hall of Fame Class of 2008. They are BLAIR COUNTY of Commerce Hall of Fame at a dinner on as follows: Altoona Blair County CHAMBER OF COMMERCE October 20, 2008, at the Blair County Development Corporation, Dick’s Convention Center. To qualify for the Pharmacy, Inc./Homecare Inc, and Hall of Fame the recipient must have a Family Services, Inc. history of at least 25 years and a lasting The induction in the Hall of Fame is effect on the commerce generated in Blair quite a prestigious honor for THGI. In County. 1997 THGI received The Excellence in Small Business Award from the Chamber. v 3 Alliance Girl’s Home Santiago, Chile Submitted by Nancy Stolz, Administrative Assistant, THGI I was blessed with an opportunity to showed me just a little go on a short-term mission trip to the bit of their beautiful Alliance Girl’s Home in Santiago, country. I stayed the Chile, from January 24 to February 1, rest of my trip at the 2008. Alliance Girl’s Home. I first learned about the Home last An average of 75 year when I received the materials for girls ranging in age our annual Children’s Missions Project from 5 to 18 live at the for the children in grades 1 – 6 for my Home, and most of Sunday School classes at Altoona them have been beaten, Alliance Church. Our project for abused, and abandoned. 2007-08 was called “Share the Ride” Some of the stories L to R: Joan Mack with Nancy Stolz from The Hancock and the purpose was to raise funds to about these children Group & children from the Alliance Girls Home buy a van for the Girls’ Home. I read break your heart and make you cry, but and live in Canada with a sponsoring about the incredible work of Tom there is so much joy in seeing their family. Orme, who started the “Vision for beautiful spirits and the love they have This mission trip was such an Chile” ministry, and Rev. Bob and to give. Unfortunately, they have trou - incredible experience and I can’t wait t Cheryl Fugate, our Alliance missionar - ble getting volunteers at the Home go back again. Of course, I had the ies in Santiago. I never imagined that I because it is located in the most dan - wonderful prayer support of so many would actually be meeting and work - gerous part of Santiago. people including my Alliance “church ing with them a few months later! But Although I don’t speak Spanish, I family” and my “work family” at The then again, one of my favorite scrip - discovered in working with these won - Hancock Group! tures is Jeremiah 29:11-13 – “For I derful children that love and hugs are P. S. If you would like more informa - know the plans I have for you declares international – no translator is needed! tion or to volunteer for a life-changing the Lord…” While I did all kinds of things from experience, please feel free to call me Thanks to Joan and Bill Mack, who mopping floors and hauling stones to or check out websites at: also attend Altoona Alliance, I was able playing games and just spending time www.cmalliance.org or to spend two days with a wonderful with the kids, my primary responsibili - www.VisionForChile.org. v Chilean family. The Huertas opened ty was teaching English to one of the their home and their hearts to me and girls so that she can get a visa to work The Hancock Group Employees & Associates Foundation Awards Scholarships The Hancock Group, Inc. dents bound for college. In addition Brooke Decker, Central High School Employees & Associates Foundation to the scholarships, numerous dona - and Holly J. Scheffer, Altoona Area awarded two Scholarships at the tions have been made to worthwhile High School; and in 2007 Natasha F. Annual Central Pennsylvania projects, totaling $16,262 to non- Ray, Bellwood Antis High School Community Foundation luncheon on profit organizations and memorials and Charles J. Weber, of the Great May 8, 2008. The awards luncheon for clients and friends who have Commission School. v was held at the Casino, Lakemont passed away. Park. Recipients of 2008 scholar - Contributions to the Foundation ships were Lori Kephart, who will be are made by employees and associ - attending South Hills School of ates. Some of the employees have Business; and Leanna Noon, who this set up as a payroll deduction will be going to the University of every payroll! Pittsburgh at Johnstown in the Fall . Previous recipients of scholarships The Hancock Group, Inc. was the were: 2004 – Jonathan Somerton, first group of employees to start a Bellwood Antis High School and charitable foundation with the Lindsee Ruggles, Central High L to R: Lori Kephart, Leanna Noon, Central Pennsylvania Community School; in 2005 – Erin Neely, Bishop Jill Hannah; Back Row: Allan Hancock, Foundation. Since the inception of Guilfoyle High School; and in 2006 Craig Kilmer and Bob Beck the foundation on November 11, The Hancock Group, Inc. is what we do, and … 2003, a total of 7 scholarships have THGI Employees and Associates Foundation is who we really are! been awarded to High School stu - 4 THGI Corporate Team Sponsor for 2008 MS Walk THGI Goes to Niagara Falls By Amy Rossi, Administrative Assistant, Hancock Associates, Inc. Continued from Page 1 The Hancock Group, Inc. was a cor - 400,000 people with MS in the U. S. and whirlpools! The final stop was a visit to porate team sponsor for this year’s someone is newly diagnosed virtually Queen Victoria Park with all of its beauti - Multiple Sclerosis Walk on April 20, each hour, with more than twice as many ful flora displays and the Falls! After the 2008. The five mile walk started and women as men getting the disease. tour we checked into the Lodge Inn & ended at the Hollidaysburg Junior High The National MS Society, established Suites to freshen up and to go for dinner. School. The walk was well attended and in 1946, is dedicated to ending the devas - After dinner we walked to the IMAX was considered one of the largest as far as tating effects on multiple sclerosis. Theater to view “The Power and the participation despite the rains. Various Through its home office and 50-state net - Story” of the falls on a giant sixty foot office personnel and family members work of chapters, the Society funds more screen, with 12,000 watts of digital sur - from The Hancock Group participated in MS-related research; distributes more round sound. When the show concluded the walk (see photo) and they ranked 8th information; encourages more advocacy; we walked to the Skylon Tower where we for group involvement in monies raised and provides more programs for people went to the top of the Observation Deck for the event. with MS, their families, and the health to see the magnificent view of the Falls, Multiple Sclerosis is a progressive dis - care providers who serve them than any Niagara Gorge, the dazzling Cityscape order of the nervous system affecting an other MS organization in the world. below, along with the Toronto and estimated 400,000 Americans. The result of this worldwide commit - Buffalo skylines. This concluded our day Multiple Sclerosis is a chronic, often ment to eradicating MS is that there is and we all went back to the hotel to retire disabling disease that randomly attacks more help than ever before for people for the evening. the central nervous system. Symptoms with MS and researchers are making sig - On Sunday, May 18 we all had break - may be mild such as numbness or tin - nificant headway in both understanding fast in the hotel restaurant before starting gling in the limbs or severe such as paral - and treating the disease. There are our second day of excursions. With ysis or loss of vision. advances on numerous fronts, including everything in close proximity of the hotel we were only 5 minutes away from the The progress, severity and specific therapies for symptom management and famous “Maid of the Mist” to experience symptoms of MS in any one person can - new treatments, which are now recom - the “Roar” of the Falls! The boat traveled not yet be predicted. Therefore, a person mended by the Society, that alter the to the base of the American Falls, then to with MS never knows when attacks will course of the disease for many. the basin of the commanding Horseshoe occur, how long they will last, or how If anyone is interested in joining the Falls, observing the exhilaration of con - severe they will be. MS is a “prime of walk or becoming a corporate sponsor for fronting giant rocks and millions of gal - life” disease as most people are diag - next year’s event contact Ray Kline at: lons of water crashing like thunder near - nosed between the ages of 20 and 40. Its The Hancock Group, Inc., by! After the excursion it was back to the unpredictable physical and emotional (814) 944-8849. v bus to Souvenir City for lunch and brows - effects are lifelong. There are over ing with a final stop at Rossi Glass, home of the famous Cranberry Blown Glass. We arrived back to THGI at 9:00 p.m. with memories of the experiences that we encountered! The two days, one night excursion was compliments of the Executive Board of The Hancock Group for meeting various sales goals for the year. The two days were most enjoyable and will be long remembered by those who participated. v

L to R – 1st row: Tyler Rossi; 2nd row: Jen Kline, Judy Rossi, Amy Rossi, Ray Kline 3rd row: Lori Beck, Bob Beck, Nancy Stolz 4th row: Jim Campbell, Patty Kilmer and Craig Kilmer U.S. Side of Niagara Falls 5 Coping With Volatile Markets By Michael R. Reichard, Student Intern from Penn State Altoona Campus Volatility and rapid swings in equity panic selling. According to a 2007 tions last about one-sixth as long as prices are an inherent part of investing. Dalbar study, the greatest returns are expansions. While no one knows when a When these things happen, investors reaped by those who hold their invest - decline will end, now might be a good often tend to give in to their fears by dis - ments the longest. Dalbar studied stocks, time to re-evaluate your risk tolerance. rupting their portfolios and questioning bonds, and asset allocation funds and dis - Investors should consider using target- their long-term financial plans. This is covered the average investors in asset date and target-risk asset allocation port - only human nature to feel changes are allocation funds held their funds longest. folios because these funds are specifical - needed while dealing with volatility and As a result, these investors successfully ly designed to match an investor’s risk tol - uncertainty, but as studies have shown, weathered one of the most severe market erance and retirement date. the worst 12-month stock market declines declines in history (2000-2002). The bottom line is it takes discipline historically have been followed by peri - Another key strategy to coping with and patience to keep today’s bad news ods of even greater recovery. market volatility is to diversify your port - from ruining your long-term investment While this is a historical fact, it is not a folio. According to the same Dalbar goals. Investors should recognize that guarantee of future positive returns after a study, investors guess incorrectly about successful investing is a marathon, not a prolonged stock market downturn. the market’s direction 75% of the time. sprint, and continue to pursue their long- Investors have to confront their emotions Diversification is the process of spreading term investment goals no matter what bad during difficult market periods and resist investments across a number of different news today brings. the urge to sell or reduce their market types of investments, as well as different The financial professionals at THGI holdings. styles and market capitalization of equi - are here to help you stay on track with Nobody can predict the future, so it is ties (large-cap, small-cap, value and long-term goals and cope with the volatil - crucial for investors to stay invested. growth stocks) and bonds. ity in the market. They are familiar with When investors disrupt their portfolios Diversification strengthens the benefits of your personal situation and can provide and sell, they often miss major market asset allocation by causing your assets to you with the advice you need. You can upswings that can happen very quickly be less affected by market swings than learn more about dealing with volatile and signal the start of a longer recovery. they would be if invested in a single asset markets by contacting Craig Kilmer at To avoid missing these key days, class. The Hancock Group, Inc., investors want to stay invested and avoid Historically, business cycle contrac - (814) 944-8849. v Ambassador knew cancer was ‘beatable’ answered every question, and they were so By Kayla Hoskinson - Reprinted with permission from the Altoona Mirror patient,” she said. For the last two years, she One of the purposes of the Relay for Life At the end of March 2006, she had a par - has been cancer-free, and she has had no ill events is to celebrate those who have sur - tial right neck dissection and then began effects. “You’d never know except for the vived cancer. radiation treatment. By June, she finished scar on my neck,” she said. She has also Brigitte Donlan, 26, this year’s treatment and embarked on physical thera - been participating in the Relay for the last Ambassador, is one of those survivors. py to regain strength in her right arm. two years. Before that, she helped out with The 26-year-old elementary school Donlan had her treatments and surgeries at Daffodil Days at school, which raises teacher in the Hollidaysburg Area School Altoona Regional Health System and only money for the Cancer Society. District is a Penn State University graduate. missed school for her two surgeries. As ambassador, she said she attends She has taught at Allegheny No. 1 “I was still able to go to school and do functions for Relay. “It’s another way to Elementary School for three years and is youth group at [Providence Presbyterian show people how they are helping people of pursuing her master’s of education at St. Church], which were both motivators for all ages, even young people. Seeing me and Francis University, Loretto. me,” said Brigitte. that I can go on living a long life makes a In her last year at Penn State, she devel - Toward the end of her treatment, she difference,” she said. oped infectious mononucleosis and, for the nearly lost her voice. She said it was down Carol Clapper, the co-chair woman of next two years, had pain in the right side of to a whisper as she taught her students. Relay for Life in Central Blair County, said her neck. Originally, her doctors thought Knowing she had to act normally for the that the ambassador is chosen based on rec - that one of her lymph nodes was damaged sake of her fifth-grade class though made ommendations from committee members from the virus. Instead, she said, they found the entire process easier on her along with and their knowledge of survivors and their a golf ball-sized tumor when they operated the support from her husband, family, stories. on her in February 2006. “I was surprised, friends and church. Brigitte is married to Rob Donlan, but once I realized what I was facing, I The American Cancer Society also pro - President of Hancock Capital Management, knew that it was beatable,” she said. She vided her with assistance while she was Inc., Executive Director of The Argyle was diagnosed with adenoid cystic carcino - undergoing treatment. “The American Group, Inc, and Brokerage Manager of ma, a rare cancer of the sub-mandibular Cancer Society and the nurses at the THGI. Rob has been with THGI since salivary gland. According to the Adenoid Oncology Department and doctors 1996. v Cystic Carcinoma Organization International, this type of cancer has no “Seeing me and that I can go on living a long life makes a difference.” known cause and is not hereditary. – Brigitte Donlan, on being a Relay for Life 2008 Ambassador 6 What to Know When Buying Disability Insurance By Craig Kilmer, President, Allan Hancock Agency, Inc. Cost considerations Definition of Disability – A policy that Gender – Women usually pay more A number of factors determine the cost pays benefits if you are unable to per - than men for an individual policy of an individual disability income poli - form the duties of your own occupation because claim costs are higher for cy, including the following: is more expensive than a policy that women than men. Under a group poli - pays benefits if you are unable to per - cy, however, men and women typically Age – Younger persons pay less per year form the duties of any job for which you pay the same rate. for a policy than those who are older are reasonably qualified. and more likely to become disabled. Optional Benefits – For an extra premi - Note that the vast majority of companies Elimination period – This is the waiting um, some policies offer additional ben - do not issue policies for people older period before benefit payments will efits, such as cost-of-living increases or than 60. begin. The waiting period usually the option to purchase higher benefits in ranges anywhere from the 31st day to the future. Benefit Amount – Policies that replace six months or more after the onset of the more of an individual’s salary are more disability. Depending on how much Smoker/Tobacco Use – Most compa - expensive. A policy that replaces 80 money you have saved, and your other nies either give a discount to non-tobac - percent of your salary costs more than resources, you can reduce your premi - co users or add a surcharge to the premi - one that replaces only 60 percent of ums by electing to wait 60 days, 90 um for tobacco use. your salary. days, or even six months before you Type of Job – Expect to pay more for a start to receive benefit payments. Benefit Period – The shorter the benefit policy that covers a high-risk occupa - period, the less expensive the policy. Discounts – many companies offer dis - tion compared to a low-risk occupation. For example, a policy with a two-year counts for policies issued at the same For more information on Disability benefit costs less than a policy that pays time on more than one person, as well as Insurance, contact Craig Kilmer, (814) benefits to age 65, or the retirement age when an employer (or association) col - 944-8849, THGI. specified under Social Security. lects the premiums for individual policies from employees and pays the insurer. - Ample Opportunity - Current Health Status – Your health The median household amount currently status determines whether you are eligi - Extent of Disability – A policy that pays saved toward retirement and among pre-retirees (55 years old and up) work - ble for standard rates or rates that are benefits only if the policyholder is total - ing full time is $64, 563, but 15% are not higher. A policy also may exclude from ly and permanently disabled costs less yet saving for retirement. coverage any health conditions that than a policy that also pays benefits for – Executive Benefits – Employer Viewpoint; exist before the policy is issued. a partial or temporary disability. LIMRA International 2004 Questions to Ask About Your Group LTD Program • Will the plan pay benefits if I am work - By Craig Kilmer, President, Allan Hancock Agency, Inc. ing at a reduced capacity? • To what extent will I have to pay taxes Insuring your income could be one of • How long must I wait before collecting on benefits received? the most important things you ever do. It Group LTD insurance benefits? • To what extent will I be responsible for is natural to insure your home, car and • What percentage of pay if any will I medical insurance premiums and other other valuables. Why not protect the receive during the waiting period? benefits previously provided by my funds that provide these items – your • If partial benefits are provided, do I have employer? income? If you were to sick or hurt to to be totally disabled during the waiting • Will my benefits be adjusted for cost of work, would your Group Long-Term period? living increases on an annual basis? Disability (LTD) insurance plan compen - • What percentage of my pay will I • Can I retain my coverage should I sate you enough to cover your monthly receive from this benefit? What is the change employers? bills? maximum monthly benefit? If the answer to these questions are of • Is bonus income or incentive pay cov - concern to you, contact Craig Kilmer, Here are ten questions to help you ered? (814) 944-8849, THGI for information on develop a better understanding of your • How long will the plan cover me in my how you can insure your most valuable Group LTD insurance coverage. chosen occupation? asset, YOU! - Gender Gap - The average monthly Social Security benefit for women is $800, versus $1,177 for men. -Women’s Institute for a Secure Retirement (WISER), Investment News, May 12, 2008

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