TruStageTM Life Underwriting Guide

TruStage TM Life Underwriting Guide

Welcome

We’re on a mission to make a brighter financial future accessible to everyone. Life Insurance products from TruStage can help give your clients confidence that their family will be cared for financially. And that’s a great feeling. This document is designed to help answer the most common questions about our approach to underwriting and risk selection. While we may not be able to provide specific details for every possible scenario, we want you to have enough information to determine if a TruStage product may be a good fit for your client. Our Partner Management Team stands ready to support you in any way we can. Our Philosophy Life Insurance can be complicated, and consumers often struggle to understand its complex features and options. That’s why we believe so strongly in simple products that are easy to understand, with a quick and convenient application process. That way, your clients can apply for the coverage they need with less time and hassle. To accomplish this, we have built an innovative underwriting platform that is fully automated with real-time decisioning for all products. We do not require medical exams, attending physician’s statements, or paramedical appointments. There is typically no follow-up telephone interview for additional information related to the applicant’s personal history or medical background. The underwriting decision is made using only the answers to the health questions on the application, in combination with real-time database checks like prescription history and electronic health records. It’s important to recognize that this fully automated underwriting is unique in the industry. It also has the potential to expose our business to some unique risks. One of those risks is adverse selection. If we make every aspect of our underwriting rules publicly available, we could unintentionally attract a greater concentration of mortality risk that our products were not priced for. Another concern is exposing proprietary underwriting rules to competing carriers. If widely known, our underwriting rules could even be exploited through fraudulent activity. For these reasons, we cannot share as much detail as perhaps you might want. Additionally, some of our rules may vary by the age of the applicant or the amount of coverage being applied for. Even specific medical conditions are not always approved or declined in the same way, because the applicant’s medical database records must be factored into the decision. However, we s till think it’s useful to provide some general guidelines about the kinds of risks we are comfortable insuring.

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TruStage ™ Simplified Issue Term Life Insurance is issued by CMFG Life Insurance Company. This is a term policy to age 80 that has premiums that increase when entering each five-year band: 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75. Base Form Numbers for coverage under 100k: ICC16-A10a-039, A10a-039- 2016 & over 100k ICC17-SIT-2, 2017-SIT-2. TruStage ™ Guaranteed Acceptance Whole Life Insurance is issued by CMFG Life Insurance Company. Death benefit is limited the first 2 years of the policy and is limited to a return of 100% of premiums, plus 10%. Base Form Numbers: ICC16-GAWL, 2016-GAWL. TruStage ™ Advantage Whole Life Insurance is issued by MEMBERS Life Insurance Company. Base Form Numbers: ICC20-WLMLIC, 2020-WLMLIC. The insurance offered is not a deposit, and is not federally insured, sold, or guaranteed by any depository institution. Product and features may vary and not be available in all states. Corporate Headquarters: 5910 Mineral Point Road, Madison, WI 53705. © TruStage

TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Product Eligibility Guidelines

Prior to running the health underwriting rules, we have a series of automatic checks in place to determine if the applicant is eligible for the coverage they are applying for. Each of these eligibility checks is explained below.

Age & Face Amount Limits

TruStage TM Advantage Whole Life (TAWL)

Issue Age

Minimum Face Amount

Maximum Face Amount

18-70

$5,000

$100,000

71-75

$5,000

$50,000

76-85

$5,000

$25,000

TruStage TM Simplified Issue Term Life Band 1 (SIT-B1)

Issue Age

Minimum Face Amount

Maximum Face Amount

25-69

$5,000

$100,000

TruStage TM Simplified Issue Term Life Band 2 (SIT-B2)

Issue Age

Minimum Face Amount

Maximum Face Amount

18-69

$101,000

$300,000

TruStage TM Guaranteed Acceptance Whole Life (GAWL)

Issue Age

Minimum Face Amount

Maximum Face Amount

45-80

$2,000

$25,000

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Responsibilities of Agents and Applicants In all cases, the proposed insured must be physically or virtually present (on screen or over the phone), directly participating in the application process. In the case of an agent-assisted sale, the application must be completed by a properly licensed and appointed life insurance agent. The agent must read each health question exactly as it is written on the application and must record every answer exactly as the applicant indicates. The agent must make no attempt to influence the answers to health questions or manipulate the underwriting decision in any way. Even in the case of an agent-assisted sale, the proposed insured must personally sign the completed application, whether an electronic signature or voice signature. The agent may not sign on behalf of the applicant. Any evidence of agent fraud will not be tolerated, and disciplinary action will be taken (up to and including revoking the agent’s appointment to sell TruStage Life Insurance). In the case of a direct-to-consumer sale with no agent involvement, the proposed insured must personally complete the application. No spouse, family member, friend, or any other person is allowed to apply for TruStage Life Insurance on someone else’s behalf. Our application requires the proposed insured to certify that they are the applicant. Any material misrepresentation on the application, intentional or otherwise, may be grounds for policy recission and/or contestable claim. Fraud Check Unfortunately, fraud activity is a persistent threat in our industry, and we all have a responsibility to help prevent it. To fight this problem, we maintain a database of personally identifiable information associated with fraudulent activity. Every life application is checked against this database, and if there is a match the application cannot be accepted.

Identity Verification We need to be confident that we are doing business with a real person and stop applications with falsified personal information. Every application is checked against a national database of public information. If we cannot find a match, the application cannot be accepted.

Prior Declined Applications If an individual is declined for coverage due to health/underwriting risk, they are not eligible to re-apply for that product for 30 days. Every application is checked against previously declined applications from the past 30 days. If there is a match, the application cannot be accepted.

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Maximum Per-Life Coverage Limits Each TruStage Life product has a maximum amount of in-force coverage allowed for any individual person (see below for specific limits). There is no limit to the number of separate policies for any one person, provided that the total coverage does not exceed the maximum limit. Every application is checked against active policies as well as pending applications. If the new application would put the total coverage over the limit, the application cannot be accepted. The applicant may proceed with an application for a lower coverage amount if it does not exceed the limit. In all cases, the coverage sold must fit the needs and budget of the applicant.

Coverage Limits

• TruStage TM Advantage Whole Life (TAWL) – $100,000

• TruStage TM Simplified Issue Term Life Band 1 (SIT-B1) – $100,000

• TruStage TM Simplified Issue Term Life Band 2 (SIT-B2) – $300,000

• TruStage TM Guaranteed Acceptance Whole Life (GAWL) – $25,000

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Impairment Guide

This guidance is applicable to any TruStage simplified issue life products. Note that TruStage TM Guaranteed Acceptance Whole Life (GAWL) is not subject to any underwriting requirements.

Height/Weight Regarding general eligibility limits for our simplified issue products, we cannot insure an applicant with weight less than 85lbs or more than 450lbs. We also do not currently offer coverage for people less than 4’8” tall or more than 7' tall. For all other applicants who are not excluded by those limits, their underwriting decision will be determined by a variety of other factors including their age, product, coverage amount, medical impairments as well as their prescription history and electronic health records. The applicant must answer all health questions honestly and let the underwriting rules determine if they are approved or declined for the life insurance coverage they are applying for. Tobacco Use All applicants who have used tobacco or nicotine products within the past 12 months will receive tobacco premium rates for products with tobacco-distinct rates (TruStage TM Advantage Whole Life and TruStage TM Simplified Issue Term Life Band 2). The applicant must answer “yes” for tobacco if they have used tobacco or nicotine products in any form within one year prior to the application. This includes nicotine gum, nicotine patches, cigarettes, cigars, pipe tobacco, vaping, electronic cigarettes, hookah, etc. Marijuana use, whether medical or recreational, does not constitute tobacco or nicotine, and therefor does not require a “yes” answer . After the policy has been issued, changes from Tobacco to Non-Tobacco rates may be allowed with evidence of insurability and a completed Policy Change Form. To qualify for this premium rate change, the insured must not have used tobacco in any form or a nicotine substitute in the last 12 months at the time of the request. Uninsurable Impairments Very few of the health questions on our applications are treated as an absolute “knock - out” for coverage eligibility. Instead, most underwriting rules will vary depending on the age of the applicant, the amount of coverage applied for, the combination of medical impairments along with their prescription history and electronic health records. For this reason, we are not able to share specific knock-out questions. The wording of each application question is straightforward and must be interpreted literally. The applicant must answer all health questions honestly and allow the underwriting rules to determine if they are approved or declined for the coverage they are applying for.

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Frequently Asked Questions

Here are answers to some of the questions we hear most often from agents and distributors.

1. Question: What type(s) of diabetes require a “yes” answer?

Answer: If the application asks for any treatment or diagnosis of diabetes “requiring insulin” and the applicant does not require insulin, they should not answer “yes.” However, if the question does not reference insulin, any diabetes treatment or diagnosis in the past five years would require a “yes” answer. 2. Question: If the applicant was diagnosed with any condition more than five years ago and they are taking prescription medication to manage their condition, should they answer “yes” to that question? Answer: Any ongoing medication is considered treatment for a condition, and therefore the applicant must answer “yes” to that question.

3. Question: Is COPD considered a chronic lung condition?

Answer: Yes, applicants with COPD should answer “yes” to chronic lung condition.

4. Question: What is considered “chronic depression” and when should applicants answer “yes” to that condition? Answer: Depression is considered chronic when treatment or symptoms last longer than six months. If the applicant is unsure whether their condition is chronic, they should verify their diagnosis with their physician or psychiatrist.

Question: Is TIA considered a stroke?

Answer: Transient ischemic attack (TIA) is a separate diagnosis from a stroke. An applicant who as experienced an episode of TIA but not stroke should not answer “yes” to treatment or diagnosis of stroke.

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

Additional Information

Reinstatement Underwriting Reinstatement requires evidence of insurability, which is accomplished using a special application form. Underwriting requirements for reinstatement are consistent to those in the new business application process. Specific reinstatement requirements may vary by product; policyholders should refer to their policy document for more details. A policy is reinstated without a reinstatement application if the full premium needed to pay the policy to a current date is received within 70 days of the paid-to date. Material Misrepresentation/Contestable Claims During the first two years of the policy, we may contest a claim if there is any material misrepresentation found on the application. In the case of reinstatement, a new two-year contestability period will begin. After the two-year contestability period, we will only contest coverage for non-payment of premiums or fraud in the procurement of the policy or reinstated policy (where permitted by state law). If the insured's age and/or sex has been misstated on the original application, the amount payable at the time of claim will be the amount the premium paid would have purchased had the age and/or sex been correctly stated at the time of application. If the correct age is not within the issue age range for the product, the premium and benefits will be calculated mathematically. Resources Please be aware that our underwriting decisions are final, and there is no appeal process for underwriting decisions. However, applicants may dispute the validity of their personal information that was used in the underwriting decision. If your client believes there is an error in the identity verification database, they may visit LexisNexis at https://consumer.risk.lexisnexis.com to learn what steps they can take. Please note that LexisNexis does not make underwriting decisions, nor can they explain why a decision was made. If your client wishes to inquire about the accuracy of their prescription history or other electronic health records used in our application process, they may contact ExamOne at 1-844-225-8047. Please note that ExamOne does not make underwriting decisions, nor can they explain why a decision was made.

If you have further questions that were not specifically addressed in this document, please contact us at tspartner@trustage.com and our team will do our best to get the information you need.

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TAWL, GAWL, SIT1, SIT2-6483292.1-0324-0426

For Internal use only. Not to be shown or distributed to the public.

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