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Looking To Tomorrow 401(k) Plan Kemper Corporation offers a 401(k) Plan to help you prepare for retirement. Generally, you can defer 1% to 60% of your eligible pay to the Plan on a pre-tax basis up to the IRS maximum of $16,500 for 2011. If you are currently age 50 or over or will be prior to year end, you may contribute up to an additional $5,500. On the first day of the month following your first full year of service, Kemper Corporation will begin matching your contributions at $0.50 on the dollar, up to 6% of your eligible pay. As of August 1, 2011, you were contributing 1% of your pay to the 401(k) Plan for a projected total 2011 contribution of $520.99. Your estimated Kemper Corporation matching contribution for 2011 is $260.57.

Future Value of Your 401(k) Account $49,397.93

$22,120.12 $13,346.68 5 years

10 years

20 years

These are estimated projections only based on specific assumptions and must not be construed as investment advice. These estimates are based on a 2% average annual increase in base salary and average annual investment return of 5%. Neither the assumptions nor the projections are guaranteed.

As of August 1, 2011 your 401(k) account balance was $6,848.13. The chart to the right shows the projected future value of your account assuming you continue to defer at your current rate.

Pension Plan In addition to the 401(k) Plan, Kemper Corporation sponsors a retirement plan that is not included on this statement: the Pension Plan. This Plan is a defined benefit plan that provides a retirement benefit to you based on your final average pay and total service with Kemper Corporation. Generally, your eligibility for this Plan is determined by your date of hire. All eligible employees are automatically enrolled in this Plan. Additional information can be obtained by contacting the Kemper Corporation Retirement Benefits Department Message Center at 1.800.230.5369.

Social Security, Medicare, Unemployment & Workers' Compensation Social Security & Medicare: Each year, you and Kemper Corporation both share the cost of FICA taxes (Social Security and Medicare). In 2011, your FICA withholding includes Social Security taxes of 4.2% on the first $106,800 of your compensation and Medicare taxes of 1.45% of your total compensation. Additionally, Kemper Corporation contributes 6.2% on the first $106,800 of your compensation toward Social Security taxes and 1.45% of your total compensation toward Medicare taxes. For more information or to receive a Social Security benefit estimate, contact the Social Security Administration at 1.800.772.1213 or ssa.gov. Unemployment Compensation: You are covered under federal and state unemployment compensation coverage, which provides you with partial compensation in the event you are laid off from work for reasons other than misconduct. If you terminate your employment with Kemper Corporation, you are either not covered, or the period of waiting for benefits is extended. If you qualify for coverage, your income subsidy will be based on a percentage of your earnings. Contact your state employment office for claims filing information. Workers' Compensation: You are covered by workers' compensation insurance in the event you are injured while working. If your accident results in death, your family will receive survivors' income. This coverage also applies to disability or death caused by a job related disease. Consult your state workers' compensation department or the Human Resources Department for claims information.

Important: Total benefit plan costs and compensation values were projected and annualized based on information in our files as of August 1, 2011. While the statement is the product of diligent efforts to report information accurately, sometimes errors do occur. Your entitlement to benefits is not determined by this statement, but by the provisions of the Company's plans and, if applicable, insurance contracts. In the event of any inconsistency, the terms of those plans and contracts will govern. This statement is for illustrative purposes only and does not provide a guarantee of compensation, benefits or employment. The figures are not intended to reflect tax information, should not be used for tax purposes, and may vary based on smoking status.

Andria Abel Po Box 744022 Dallas, TX 75374 MERA


Health Benefits

Dear Andria,

2011 Compensation & Benefits

This is an exciting time for employees of Kemper Corporation. We recently introduced a new name, a redesigned logo, and a unified brand under which our family of companies can continue to grow. While there have been many changes as of late, a constant that remains is our commitment to the essence of this company you!

Annual Base Salary

$

52,452.95

Kemper Corporation Paid Benefits

$

13,377.49

With that in mind, we are pleased to provide you with the following personalized Compensation and Benefits Statement that summarizes your 2011 compensation package at Kemper Corporation. The information detailed in this statement is based upon your benefit elections and annual salary as of August 1, 2011. The Kemper Corporation benefits package was designed with you and your family in mind, not only for today but also for tomorrow. We hope that you agree that it is indicative of our commitment to providing quality benefits at an affordable price. Thank you for everything that you do. Sincerely, Donald G. Southwell Chairman, President & Chief Executive Officer

Your 2011 Total Compensation

$ 65,830.44 Total Compensation

Total Benefits Cost

Kemper Corporation offers eligible employees the opportunity to enroll in medical, dental, and vision insurance. Your elections as of August 1, 2011 are shown below. Please refer to the applicable summary plan description for a complete description of benefits and plan rules. Benefit

Plan

Coverage

Medical

Blue Cross Blue Shield Copay

Employee + Child(ren) $25/$35 physicians office visit copay; $100 ER copay and $250 hospital copay; $3,000 out of pocket max

Dental

MetLife Copay

Employee + Child(ren) Copay schedule depends on area in which service is received; plan pays maximum allowed charge after copay; $1,500 annual benefit maximum

Vision

Vision Plan

Employee + Child(ren) $10.00 vision exam copay; $25.00 prescription glasses copay; $115.00 allowance for contact lenses

80%

63%

Details

20%

Kemper's Cost 37% Your Cost

Earnings Kemper Paid Benefits

2011 Benefits Package Benefit

Your Annual Cost

Kemper's Annual Cost

Medical

$

4,296.00

$

8,292.00

Dental

$

156.00

$

156.00

Vision

$

81.48

$

0.00

Basic Life and AD&D

$

0.00

$

139.32

Voluntary Life

$

81.48

$

0.00

Child(ren) Life

$

10.08

$

0.00

Voluntary AD&D

$

30.00

$

0.00

401(k) Plan

$

520.99

$

260.57

Federal Unemployment

$

0.00

$

56.00

State Unemployment

$

0.00

$

207.76

Workers' Compensation

$

0.00

$

600.00

Social Security & Medicare

$

2,707.45

$

3,665.84

Total Benefits Cost

$

7,883.48

$

13,377.49

Survivor Benefits

Paid Time-Off Benefits

Basic Life Insurance and Accidental Death and Dismemberment coverage is provided by Kemper Corporation at no cost to you. You may also purchase Voluntary Life Insurance for yourself and your family. Your coverage levels as of August 1, 2011 are shown below.

You are eligible to accrue the following paid time-off each calendar year. These figures were determined using your paid time-off accrual rate as of August 1, 2011 and do not reflect your current paid time-off balance.

Basic Life and AD&D Benefit

$53,000

Voluntary Life Benefit

$158,000

Spouse Life Benefit

Time-Off Benefit

Number of Days

Benefit Value

PTO

22

$4,438.33

Holidays

7

$1,412.19

No Coverage

Child(ren) Life Benefit

$10,000

Voluntary AD&D Benefit

$100,000

Income Protection Benefit Long Term Disability: Kemper Corporation offers you the opportunity to purchase Long Term Disability (LTD) insurance. This coverage provides you with 50% of your earnings, up to a monthly maximum of $12,000, if you are disabled due to illness or injury for more than 180 days. You have declined Long Term Disability coverage.

Other Valuable Benefits Health Care Reimbursement Account

Dependent Care Reimbursement Account

Short Term Disability

Employee Assistance Program

Travel Accident Insurance

Tuition Assistance

312-88-9741  

401(k) Plan These are estimated projections only based on specific assumptions and must not be construed as investment advice. These estimat...

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