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                                                                   Exhibit 10.36

                             NEW ENGLAND FINANCIAL
                     LONG TERM PERFORMANCE COMPENSATION PLAN
         (FOR PERFORMANCE PERIODS STARTING ON OR AFTER JANUARY 1, 2000)


I.       PURPOSE OF THE PLAN

-        Align management with policyholders' interests

-        Provide competitive levels of total pay for senior executives for
         competitive levels of performance

-        Encourage a long term strategic perspective

-        Encourage/reward performance that supports the Company's long term
         performance results

-        Attract and promote retention of key executives with long term business
         perspective

II.      PARTICIPATION

         The Board of Directors will determine THE LEVELS of Officers and others
         eligible to participate in the Plan for each performance period. An
         individual who becomes a participant in the Plan will participate pro
         rata in any performance period then in progress from the effective date
         of participation. Upon the recommendation of the Chief Executive
         Officer, the Board of Directors may determine participation on a basis
         other than proration. Participants' incentive opportunities under the
         Plan shall not be vested or assignable in any respect.

III.     PERFORMANCE PERIODS

         The period over which long term performance shall be measured is three
         years. Each performance period will begin on January 1.

IV.      TARGET INCENTIVE OPPORTUNITIES

         The Nominating and Compensation Committee (the "Committee") will
         establish the incentive opportunity for each LEVEL of Plan participant
         for each performance period.




The schedule of target percentage opportunities for the various levels of
participants is:




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<TABLE>
<CAPTION>
              GRADE LEVEL (CURRENT TITLE)                               TARGET PERCENTAGE OPPORTUNITY
              ---------------------------                               -----------------------------
<S>           <C>                                                       <C>
              41 (CHIEF EXECUTIVE OFFICER)                                           250%
              40 (PRESIDENT)                                                         200%
              39 (SENIOR EXECUTIVE VICE PRESIDENT)                                   185%
              38 (EXECUTIVE VICE PRESIDENT)                                          150%
              36/37 (SENIOR VICE PRESIDENT)                                          95%
              33-35 (VICE PRESIDENT/SR. VICE PRESIDENT)                          30%/65%/85%
</TABLE>

         At the beginning of each plan period, management recommends individual
         incentive opportunities for each participant. These incentive
         opportunities may be higher or lower than the above targets established
         for the various levels based on the individual's relative contribution
         to or impact on long term business results, the individual's potential
         and the individual's level of personal performance.

         The incentive opportunity ($) for each participant is determined by
         multiplying the applicable percentage for the individual by the
         individual's average base salary over the performance period. If the
         participant was not an employee of the Company at the beginning of the
         performance period, the Committee, at the Chief Executive Officer's
         recommendation, will determine in its discretion, the appropriate
         incentive opportunity.

         The total incentive opportunity for any performance period is equal to
         the total of the incentive opportunities of all individuals
         participating in that performance period.

         Where an individual changes participation levels or becomes a
         participant in the Plan for the first time during a performance period,
         incentive opportunities are prorated accordingly.

V.       GUIDELINES FOR DETERMINING CORPORATE PERFORMANCE

         At the beginning of each performance period, the Nominating and
         Compensation Committee will determine the measures and specific goals
         for that plan period. The measures for the Plan will include both
         financial and strategic business goals against which corporate
         performance will be measured.

         Performance assessment at the end of each period will consider
         achievement of established goals. In addition to performance as
         measured against these goals, the




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         overall assessment will involve the broad discretion and judgment of
         the Committee and may take into account changes in corporate strategy
         and in the market, economic, tax and regulatory environment during the
         performance period. The Committee will determine a corporate
         performance percentage that may vary between 0% and 200%.

VI.      AWARDS

         Following the end of each performance period the Committee will
         determine the amount which may be awarded to the participants with
         respect to such period. Such amount will be the incentive opportunities
         multiplied by the corporate performance percentage. The Committee will
         recommend individual awards to the Board. These awards will generally
         be equal to the participant's incentive opportunity multiplied by the
         corporate performance percentage. However, line of business
         performance, changes in an individual's responsibilities, or individual
         performance may be taken into account when determining individual
         awards. The Committee has discretion in determining the amount of any
         recommended award, may decline to recommend an award, and may modify
         the time of payment of any award.

         THE PAYMENT OF ANY AWARDS AS A RESULT OF PERFORMANCE UNDER THE PLAN FOR
         THE 2000 - 2002 PERFORMANCE PERIOD WILL BE PAID OUT IN 2003. IT IS
         ANTICIPATED THAT A PORTION OF ANY INDIVIDUAL AWARD PAID OUT IN 2003
         WILL BE PAYABLE IN STOCK.

         No amount shall become payable unless it is approved by the Board in
         its discretion and no award may be made unless the participant was an
         employee of the Company or a subsidiary at the end of the performance
         period or died, retired or became totally disabled during such period
         while such an employee.

         A participant who retires, dies or becomes totally disabled while such
         an employee during the course of a performance period may be granted
         for such performance period, at the discretion of the Board, a pro rata
         portion of the full award that would have been payable if such event
         had not occurred, or at the recommendation of the Chief Executive
         Officer, an award may be recommended on other than a pro rata basis.

         Awards under the Plan will not be taken into account for purposes of
         determining the level of Insurance and Retirement benefits and
         contributions to the Savings and Investment Plan.



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VII.     ROLE OF THE COMMITTEE

         The Committee exercises overall responsibility and has broad discretion
         with respect to all aspects of the Plan and for performance assessment.







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