Welcome to Union Insurance

Union Insurance Group, LLC (UIG), a subsidiary of Union Bankshares Corporation, was established to make various insurance products and financial planning available to bank customers and residents of the communities we serve. Insurance Advisors are available to schedule appointments at any of the Union Bank and Trust, Rappahannock National Bank, or Northern Neck State Bank locations.

Through our relationship with Virginia Bankers Insurance, LLC, we are able to provide you with affordable coverage ranging from:

• Commercial Property and Casualty and Liability
• Life and Health Insurance
• Long Term Care Insurance
• Group Annuities
• Business Insurance
• Employee Benefits
• Individual Property and Casualty

Insurance Planning

The decisions you make in planning for your future or the future of your business or family are generally very involved and should be a more creative undertaking than simply ordering through the mail or on the internet. There are many factors you should consider when putting your insurance future together including your age, your income, employment status as well as your own personal goals. With so many things to consider, it is wise to get professional assistance. You need the comfort and reassurance of knowing that your family's future is in the hands of a trusted and proven advisor. Our professional advisors will discuss your risk today and help you forecast how your family's needs might change down the road. Then we'll review your coverage with you from time to time, just to make sure it's always current.

If you are interested in a personal analysis for retirement planning, insurance planning, or estate retention planning, give Union Insurance Group a call toll free at (800) 218-7501 or email us. We will sit down together and discuss the implications and create a sound financial insurance plan that will help meet your financial goals. For more detailed information:

• Insurance Planning
• Long Term Care Planning
• Estate Planning
• Retirement Planning
• Business Insurance
• Individual Property and Casualty

Term Life Whole Life Universal Life Variable Life Characteristics Affordable, low-cost for a specific period of time; no cash accumulation. Lifetime coverage, guaranteed level premiums, tax-deferred accumulation of cash values. Lifetime coverage, flexible premiums and death benefits, tax-deferred accumulation of cash values. Lifetime coverage, flexible premiums and death benefits, tax-deferred accumulation of cash values, a selection of investment options. Premiums Level during coverage term; may increase substantially if renewed at end of term Guaranteed level Flexible Flexible Cash Value None Guaranteed; tax deferred; low interest rate Guaranteed minimum interest rate; with the possibility to earn more interest, tax deferred Growth (or loss) dependent on performance of underlying sub-accounts; tax deferred Loans and/or Withdrawals None Cash value may be borrowed at interest, but not withdrawn Cash value may be borrowed at interest or withdrawn, depending upon policy owner needs Between 75% and 95% of cash value may be borrowed at interest or withdrawn, depending upon policy owner needs Length of Coverage Specified term spelled out in the contract; chosen by policy owner To age 100 To age 100 Determined by policy owner Death Benefit Fixed Fixed Increases may require proof in insurability Increase may require proof of insurability Investment Risk Belongs To There is no risk Insurance Company Insurance Company Policy Owner

Term Life Insurance

Term life insurance is probably the simplest and most cost-effective type of insurance you can buy. It provides the highest amount of death benefit at the lowest initial cost for a specified period of time - usually 20 years or less. Ideal candidates for term insurance are generally the young, growing families or businesses that have a substantial need for insurance protection for a defined or determinate period of time, but may lack the resources to pay for higher premium forms of insurance.

Term Life Insurance provides:

• Affordable coverage for a specified period of time
• Death benefits are tax-free to beneficiaries
• Affordable way to cover debt obligations such as tuition, mortgages, bills and more

Benefits of a Term Life Insurance policy:

• Low initial premiums
• Variety of premium lock-in options, including 1, 5, 10, 15, 20, and 25 years
• Ability to convert to permanent coverage regardless of your health

Elements to Consider:

• Premiums may increase after the guarantee period expires
• Coverage may terminate at the end of the policy term, regardless of whether the need for coverage still exists
• Does not generate cash or loan values

Universal Life Insurance

Universal life insurance, with its flexible coverage and premium options, was designed to help you accommodate life's changing needs. It offers the benefits of lifetime insurance protection, tax-deferred accumulation of cash values, and a variety of riders to customize coverage to meet your specific needs and objectives.

Universal Life Insurance provides:

• Tax-free death benefit to help cover final expenses, estate taxes, tuition, and other ongoing living expenses.
• Ability to extend coverage to additional family members, such as a spouse or children
• Flexibility to adjust policy coverage and premium amounts to accommodate your changing needs

Benefits of Universal Life Insurance

• Ability to vary the amount and timing of premiums without notice or negotiation provided your policy has sufficient policy value to cover ongoing charges and expenses.
• Option to suspend premiums during periods of tight or seasonal cash flow
• Tax-deferred growth of cash values
• Ability to change your policy's death benefit amount as your needs require (increases may require evidence of insurability)
• Two death benefit options: "Benefit Option A" that pays a level death benefit; "Benefit Option B" that pays a death benefit plus any accumulated cash values
• Ability to access cash values through loans and withdrawals (loans and withdrawals will reduce your policy's death benefit)
• Cash values earn a guaranteed minimum interest rate
• Riders which allow you to customize coverage to meet your needs and objectives

Elements to Consider

• Potential for weak or even negative cash value growth during unfavorable interest rate environments or as mortality charges increase
• Negative cash value growth could require the payment of additional premiums

Variable Universal Life Insurance

Variable universal life insurance offers the flexibility and control you need to accommodate changes that may occur in investment and insurance needs. It combines the advantages of premium and death benefit flexibility with the benefits of tax-deferred cash accumulation through participation in equity markets.

Variable Universal Life Insurance provides:

• Ability to invest accumulated cash values in professionally managed sub-accounts consisting of stock and bond portfolios
• Tax-free death benefit to help cover final expenses, estate taxes, tuition or medical costs
• Ability to extend coverage to other family members, such as a spouse or children
• Riders that allow you to customize coverage to address your needs and objectives

Benefits of Variable Universal Life Insurance

• Tax-deferred growth of cash values
• Control of how premiums are invested to match your risk tolerance and investment time horizon
• Access to cash values through loans and withdrawals to meet emergencies, assist with college expenses, supplement retirement income, or take advantage of opportunities
• Ability to increase or decrease coverage based on your needs and objectives (increases may require evidence of insurability)
• Option to skip premium payments during periods of tight or seasonal cash flow
• Potential for excellent cash value growth during strong equity markets
• Ability to transfer funds between sub-accounts on a tax-free basis
• Numerous investment options, including an account paying a guaranteed rate of interest
• Two death benefits options: "Benefit Option A", that pays a level death benefit and "Benefit Option B", that pays a death benefit plus any accumulated cash values

Elements to Consider

• The potential for weak or even negative cash value growth during unfavorable market conditions or as mortality charges increase
• Negative cash value growth that could require the payment of additional premiums

Whole Life Insurance

Whole life insurance can help ensure that money will be available to pay such expenses as college costs for children, estate taxes, funeral costs and more if you are not here to do so yourself.

Whole Life Insurance provides:

• Guaranteed lifetime coverage for you and other family members
• Guaranteed level premiums throughout the life of the policy
• Guaranteed accumulation of policy cash values
• Variety of riders that let you customize coverage to address your specific needs and objectives

Benefits of a Whole Life Insurance policy

• A guaranteed, tax-free death benefit paid to your beneficiary at death
• Ability to access policy cash values to assist with a variety of needs and objectives, including to help pay tuition, meet emergencies or supplement retirement income
• Cash values grow tax-deferred
• Policy dividends (if any) can be used to increase coverage, reduce premiums, or they can be taken in cash

Element to Consider

• Higher initial premiums than term life or other types of coverage

Long-Term Care Insurance

There are many choices to help us meet our basic daily needs as we age, including home care, assisted living, nursing facilities and residential care.

Statistics show that at least 6.4 million people aged 65 or older need long term care, with one in two over age 85+ will need care. At least half of the population who are 85+ will need help with Activities of Daily Living (ADL) such as bathing, dressing, feeding, transferring, toileting and continence. Such care is provided when someone can no longer independently carry out essential everyday activities. Most people think of long-term care as something needed by older people, but accident or illness can strike someone of any age. When it does, they too may find themselves in need of assistance.

Traditionally, women in our families have provided this care when needed. However, today's smaller families may be scattered across the country and many women are now working outside of the home. What's more, caring for a loved one full-time can overwhelm even the most devoted family member. As a result, more caregivers than ever are turning to outside resources to help with the care of a family member.

If you are among the 76 percent of Americans who do not expect to need long-term care of any sort, you may want to reconsider. Chances are greater than 50 percent that each of us will require extended care at home or in a nursing home. Another eye-opening fact is that one in four people who live to age 65 will spend one year or more in a nursing home, and one in three will spend three months or more.

Without proper planning or coverage, many people are forced to spend money set aside for retirement or rely on their children to help pay the bills.

Contact us or call (800) 218-7501 to schedule an appointment with a Long-Term Care Specialist.

Individual Property and Casualty Insurance

Covers damage to or loss of policyholders' property and legal liability for damages caused to other people or their property. Property/casualty insurance, which includes auto, homeowners and commercial insurance, is one segment of the insurance industry.

In this area of the insurance we can offer auto, dwelling fire, flood, homeowners, recreational vehicles, jewelry and other special personal insurance needs or any other need you may have.

Contact us for an appointment with one of our certified, knowledgeable Property and Casualty Specialists.

Estate Planning

If you want to protect and control your home and assets for you and your spouse now, create simple instructions for your children after you are gone and eliminate a big fight between your children and the probate court system then estate planning is what you are looking for.

Estate planning is a way for you to minimize your estate taxes, provide funding to pay estate taxes without the need to liquidate family assets and also to avoid the expense and delay of probate.

With there being so many possible avenues to consider when doing your estate planning, you need someone with the experience and knowledge to provide you with a comprehensive estate plan along with a complete analysis. We will work with you to accomplish your objectives for the management and disposition of assets during your lifetime and thereafter.

Contact us for an appointment with one of our certified, knowledgeable Estate Planning Specialists.

Retirement Planning

Everyone wants a golden retirement but saving for retirement is no easy task. With Social Security's assets being consumed and the number of workers that will support it shrinking, we will have to rely more on our personal savings when it's time to retire.

For most people, a great way to achieve financial independence is by establishing and contributing regularly to a personal retirement plan.

A retirement plan can provide immediate tax benefits that may lower your current taxable income, and enable you to build assets free from immediate taxation. That's because contributions made to a retirement plan may be tax deductible and earnings can accumulate, income tax deferred, until they are withdrawn.

Today, we have many options to help each of us prepare. Yet, without a plan of action, many find themselves falling short when it is time to retire.

The following retirement plans are available to you through Union Insurance:

• Individual Retirement Accounts (IRAs)
• Simplified Employee Pension Plan (SEP)
• 401(k) Plans

Individual Retirement Account (IRA)
An Individual Retirement Account (IRA) is available to most working Americans and their spouses. Individuals can contribute $3,000 annually; working couples and couples with one non-working spouse may generally contribute $6,000 annually. The deadline for making IRA contributions each year is April 15th. Generally, contributions cannot exceed earned income (wages). Investors in traditional IRAs benefit from the impact of income tax free deferral and compounding. ROTH IRA investors may enjoy potentially federal income tax free earnings.

A Rollover IRA is a regular IRA that is set up to serve as a receptacle for distributions from a qualified retirement plan or another IRA. You might use an IRA rollover if you are changing jobs and need to bring 401K or other retirement plan assets with you. Assets you place in an IRA Rollover can continue to accumulate income tax-deferred for as long as they remain in the IRA.

Simplified Employee Pension Plan (SEP)
A Simplified Employee Pension Plan is a plan designed to provide employers with a simplified means of making retirement contributions for themselves and their employees. Each contribution to a SEP goes directly into an Individual Retirement Account owned by an employee. Contributions are not included in the employee's taxable income until that money is withdrawn, usually at retirement.

SEP plans are typically used by small businesses with 25 employees or less and are especially popular among those who are self-employed. Employers may contribute up to the lesser of 25 percent of an employee's compensation to his or her account.

401K Plans
A 401K plan is a salary reduction plan tailored to medium to large sized businesses. With a 401K plan, employees may contribute a percentage of their salary each year. Because contributions are made with pre-tax dollars, participants can enjoy immediate tax savings.

Contribution limits for 401K plans were increased to $12,000 and will increase each year until reaching $15,000 in 2006. The employee contribution limit will be adjusted periodically for inflation after 2006.

For more information concerning any of these retirement plans, contact us or call our toll-free number (800) 218-7501.

Business Insurance

Do you own your own business? Are you covered against accidents that would affect your operations or value of your assets? These days your business can be devastated by a single fire, accident or lawsuit.

That's why Union Insurance Business Owner's Policy might be right for you. It offers coverage you may have normally had to pay extra for, but not with Union Insurance. Options include:

• Property Coverage
• Loss of business income
• Employee dishonesty
• Workers compensation

With Union Insurance Business Planning, we can help protect revenue generated by a key employee or business owner, ensure smooth business transfer in the event of an unexpected death or disability and provide deferred compensation and other benefits to key employees.

Union Insurance has the experienced, well-trained agents that are key to understanding the specific needs of your company and your employees. We are committed to working with you to help ensure your success; today and in the years to come.

Contact us or call our toll-free number (800) 218-7501 for your business insurance needs.

Key Person Life Insurance
Here at Union Insurance we understand what can happen to business when it suffers the loss of a key employee. That is why we recommend key person life insurance to help offset reduced sales or profits. The right insurance can help with the costs of recruiting and training a replacement as well as other expenses.

Key person life insurance can offer your company many benefits such as security so your business is protected from financial hardship as the result of a loss. With key person insurance the company is the applicant, owner, beneficiary and premium payer for a policy on a key individual and no prior IRS approval is required. At the time of a key employee's death, the life insurance benefits are received as tax-free income. If the key person stays with your company until retirement, the policy may be used as retirement income.

Deferred Compensation Plan
Whether you are a business owner or an employee, a deferred compensation plan is an appealing way to cut tax liability. Funded by individual employees, deferred income is not taxed until they decide to withdraw the funds.

A corporation can provide extra retirement benefits to selected employees, as well as additional life insurance benefits to the employee's family, by funding a salary contribution plan. Taxes are not owed on these funds until the money is received.

There are several advantages to deferred compensation plans:

• You decide which employees will be included in the plan
• This added benefit can be an attractive plan to help you compete for and retain key employees
• In addition to this plan being tax-deferred for the employee, benefits paid out can be deducted by your corporation
• Your company is the owner, premium payer, and beneficiary of the life insurance policy
• This plan can offer benefits to executives at retirement or to their families in the event of the person's death

If you believe this would be beneficial to you and your corporation, contact us or call our toll-free number at (800) 218-7501.

Insurance products provided by Union Insurance Group (UIG) are not insured by the FDIC or any other bank insurance, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risk, including the possible loss of principal.