United American Insurance Company

Proudly Serving Americans Since 1947

UAUHFX

Agent Training

What United American Stands For…

Stability — Meeting the life and health insurance needs of the public for over half a century

Financial Strength

Quality Protection — Insurance coverage to protect you and your family now as well as in years to come

Superior Service — One-on-one personal service for the life of your policy, backed by Home Office support staff

That’s our way… the United American way.

• A+ “Superior” financial strength rating from A.M. Best*

• AA “Very Strong” claims paying ability rating from Standard & Poor’s*

*ratings as of 6/04, 8/04 respectively

What are the headlines saying?

Healthcare costs still rising faster than the economy!

&

More people uninsured!

Sources: Health Affairs, June 2003AHIP, “2004 Elections: Medicare, the Uninsured, and Rising Costs Take Center Stage in Health Care Debate”, January/February 2004

Americans Face a Healthcare Crisis!

Healthcare costs continue to advance much faster than the rest of the U.S. economy:• 8.5% increase in 2001• 9.3% increase in 2002• 7.7% increase in 2003

Sources: Health Affairs, June 2004National Coalition on Health Care, “Facts on Health Insurance Cost,” 2003Centers for Medicare & Medicaid Services

Costs are slowing but still far exceed the rate of general inflation!

The Cost of Health Care

Insurance premiums have risen at a rate even greater than the rate of health- care inflation.

According to experts, “Consumers can expect to pay more for greater access to health- care.”

Source: Health Insurance Association of America, Chartbook on Health Care Cost Trends, 2003.

Increased Consumer Demand

18%

Government Mandates & Regulations

18%

Rising Provider Expenses

22%

Drugs, Medical Devices & Other

Medical Advances27%

Other6%Litigation & Risk

Management9%

Factors Driving Rising Costs in Healthcare

Persons Without Health Insurance

Rising costs in healthcare are pushing up health insurance premiums and forcing Americans into the ranks of the uninsured.

1992 — 34.1 million

1996 — 40.9 million

2002 — 41.2 million

2003 — 43.6 million

2004 — 45 millionIt becomes a problem if you are

a member of the uninsured!Source: United States Department of Commerce News, September 30, 2003

United American Insurance CardIn order to receive non-emergency or post-stabilization treatment, consumers must demonstrate an ability to pay …

This is when your United American health insurance cardis most valuable!

Name: PAULA C. HOLDER

Policy PolicyNumber 57300876888 Effective 01-25-03

The problem becomes finding affordable health insurance.

Where Do the Largest Medical Expenses Occur?

Hospital Confinement

Surgical Expenses

Emergency Room Charges

Source: Strunk, Bradley, and Ginsburg, Paul, Tracking Health Care Costs: Spending Slowdown Stalls in First Half of 2004, Dec. 2004

Hospital Confinement vs. Doctor’s Office Bills

• Odds are 1 in 7 that you or a family member will have a hospital stay this year.*

• Average hospital confinement includes room/board, surgical, miscellaneous and emergency expenses.

• $3,972 was the average national daily hospital charge in 2003.**

Sources: * U.S. Department of Labor; ** Current Trends in Health Care and Dental Costs Utilization, 2004 Edition;

As compared to the larger medical expenses above,the average cost of a doctor office visit in 2003 was relatively low. It was only $83!**

Therefore, the most important areas to cover are:

Hospital Confinement

Surgical Expenses

Emergency Room Charges

• Guaranteed renewable individual policies, not collectively renewable

• Issue age pricing, not attained age pricing

• No pre-authorization

• Excellent industry ratings & claims paying abilities

• No associations or association dues

• Use anywhere in the USA

• Local Home Office and Agent support

• No lifetime maximums

• Freedom to choose doctors and providers – no networks!

Choosing a Healthcare Insurance Policy

Important things to consider!

It’s YOUR health!

YOU choose your healthcare providers.

WHO? WHAT? WHEN? WHERE?

These are questions that YOU answer!

With United American, you are in control of your health care — no gatekeepers, no primary care physicians, no pre-certification, no worries about using out-of-network providers which could run up huge co-payment obligations.

UA’s Freedom of Choice

That’s our way… the United American way!

United American’sFLEXguard

Health Insurance Policy

Are you looking for an Affordable Health Insurance Policy that makes good sense?

FLEXguard Features

Policy Form GSP2. This policy has some limitations and exclusions. Plans and benefits vary by state.

Issue Ages: 0-63 Coverage for Individuals and

Families Guaranteed Renewable as long as

premiums are paid on time CHOICE OF BENEFIT AMOUNT –

$100,000; $75,000; or $50,000 PORTABLE COVERAGE – individual

policy goes where you do FLEXIBILITY – policy serves as basic

or supplemental insurance NO LIFETIME MAXIMUMS

DOWNLOADSAMPLE BROCHURE

FLEXguard Policy Features & Benefits

Policy Form GSP2. This policy has some limitations and exclusions. Benefits are paid based on actual, incurred expenses.

Benefit AmountMaximum Benefit Per Injury or Sickness $100,000 $75,000 $50,000Daily Hospital Expense Benefit

(after $500 deductible)*

For days 1-10 policy pays incurred expenses 80% up to $4,000 per day

80% up to $3,000 per day

80% up to $2,000 per day

For the next 30 days policy pays incurred expenses 80% up to $2,000 per day

80% up to $1,500 per day

80% up to $1,000 per day

Daily Hospital Expense Benefit Daily and Maximum Benefits are increased $1,000 each day for up to 10 days in the ICU

Hospital Admission BenefitIf you or your insured family member is hospitalized, the policy will pay an admission benefit.

$100 per hospital stay – benefit is not tied to incurred expenses – it can be used as you see fit.

Outpatient (Non-Surgical) Benefit • outpatient hospital expenses • diagnostic imaging such as x-rays, MRIs, etc.,• radiation treatment such as for cancer.

80% up to $500

for any one injury or sickness

80% up to $400

for any one injury or sickness

80% up to $300

for any one injury or sickness

* For inpatient and outpatient surgeries

FLEXguard Policy Features & Benefits

Policy Form GSP2. This policy has some limitations and exclusions. Benefits are paid based on actual, incurred expenses.

Benefit AmountSurgical Expense Benefit Up to $10,000 Up to $7,500 Up to $7,500

+ up to 20% of surgical benefit for Assistant Surgeon+ up to 25% of surgical benefit for Anesthesiologist

Physician ChargesINPATIENT: One doctor visit each day during an inpatient hospital stay.

80% of the doctor’s fee, up to $50 per day Maximum of $2,000

for any one injury or sickness

Physician ChargesOUTPATIENT: Doctor visits at a doctor’s office, clinic, or your home plus one physical exam each year. Benefit can be doubled.

80% up to $25 per visit 80% up to $50 for one physical exam per year

$250 maximum per yearNOTE: you may choose to double the

benefit amount as shown below

Registered Nurse Benefit 80% up to $100 per 8-hour shiftUp to three(3) shifts per day for no more than 90 days

for any one injury or sickness

Ambulance Benefit 80% up to $200for any one injury or sickness

Return of Premium BenefitDouble premiums refunded

FLEXguard Policy Features & Benefits

*Optional benefits will not continue if the policy terminates. Policy Form GSP2. This policy has some limitations and exclusions. Benefits are paid based on actual, incurred expenses.

OPTIONAL BENEFITS* Benefit AmountAdditional Physician Charges Benefit

Policy pays incurred expenses for ambulance service to or from a hospital.

80% up to $50 per visit80% up to $100 for one physical exam per year

$500 maximum per year

Critical Illness Benefit (including Cancer)Applicants must qualify for this optional benefit rider See the Agent Manual for rulesAge 18-63Rider Form R-CILS2

One-time cash benefit of up to $50,000 for first diagnosis of critical illness including: • heart attack• stroke• end stage renal failure• major organ transplant • complete paralysis of two or more limbs• third degree burns to 20% or more of the body• loss of two limbs• total loss of eyesight. • first diagnosis of cancer• The benefits for this rider will reduce by half at age 65.

Accident BenefitApplicants must qualify for this optional benefit rider See the Agent Manual for rulesChoice of $10,000 or $20,000 benefit amountAge 18-63Rider Form R-CILS2

Policy pays ONE of the following accident benefits: • accidental death benefit • a lump sum amount for specified injuries • a weekly hospital stay benefit (up to $500) for up to 25 weeks• or a first aid medical care benefit (up to $80)

UA Partners® Program

• Dental • Vision • Hearing• Chiropractic • Prescription Drug • Vitamins & Nutritional Supplements• 24-Hour Nurse HelpLine• Travel Assist*

Our optional health discount services program includes:

UA Partners is not a health insurance policy. Members will receive discounts on medical services when they go to certain healthcare providers who are contracted with the plan. Members are solely responsible for payment of all healthcare services. No portion of any provider’s fee will be reimbursed or otherwise paid by the plan. This plan is administered by Best Benefits, Inc. 8420 Bryn Mawr, Suite 700, Chicago, IL 60631, www.FindBestBenefits.com.* Availability may vary by state.

Nationwide discount health services program with savings for:

Chiropractic

Dental

Eye Care

Hearing Aids

Prescriptions

Mail OrderPharmacy

0% 10% 20% 30% 40% 50%

Up to 40%

Up to 50%

Up to 50%

Up to 20%

Up to 30%

Save More $$

UA Partners® Program

Why United American?

• Providing quality health protection since 1947• Excellent ratings with A.M. Best and Standard & Poor’s• Fast policy issue (4-6 weeks)• Local office• Personal support (always speak with a live person, either Home Office

staff or Agent)• Individual qualification (not a group plan)• Guaranteed renewable policies, as long as premiums are paid on time• Issue age pricing• No associations or association dues• Freedom of Choice• UA Partners helps drive down the cost of health care services