Document:

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                                                                    Exhibit 10.5
                        HORACE MANN EDUCATORS CORPORATION
                            1991 STOCK INCENTIVE PLAN
                AMENDED AND RESTATED EFFECTIVE DECEMBER 31, 1999

SECTION 1. Purpose; Definitions.

     The purpose of the Plan is to enable existing and prospective officers,
     employees and directors of the Company, its subsidiaries and affiliates to
     participate in the Company's future and to enable the Company to attract
     and retain such persons by offering them proprietary interests in the
     Company.

     For purposes of the Plan, the following terms are defined as set forth
     below:

          a.   "Affiliate" means a corporation or other entity controlled by the
               Company and designated by the Committee as such.

          b.   "Award" means a Stock Appreciation Right, Stock Option, or Common
               Stock with or without restrictions.

          c.   "Board" means the Board of Directors of the Company.

          d.   "Cause" has the meaning set forth in Section 5(i).

          e.   "Change in Control" has the meaning set forth in Section 8(b).

          f.   "Code" means the Internal Revenue Code of 1986, as amended from
               time to time, and any successor thereto.

          g.   "Commission" means the Securities and Exchange Commission or any
               successor agency.

          h.   "Committee" means the Committee referred to in Section 2.

          i.   "Common Stock" means common stock, $.001 per share par value, of
               the Company.

          j.   "Company" means Horace Mann Educators Corporation.

          k.   "Disability" means permanent and total disability as determined
               under procedures established by the Committee for purposes of the
               Plan.

          l.   "Early Retirement" means retirement from active employment with
               the Company, a subsidiary or Affiliate pursuant to the early
               retirement provisions of the applicable tax qualified pension
               plan of such employer.
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          m.   "Exchange Act" means the Securities Exchange Act of 1934, as
               amended from time to time, and any successor thereto.

          n.   "Fair Market Value" means, except as provided in Sections 5(j)
               and 6(b)(ii)(2), the mean, as of any given date, between the
               highest and lowest reported sales prices of the Common Stock on
               the New York Stock Exchange Composite Tape or, if not listed on
               such exchange, on any other national exchange on which the Common
               Stock is listed or on NASDAQ. If there is no regular public
               trading market for such Common Stock, the Fair Market Value of
               the Common Stock shall be determined by the Committee in good
               faith.

          o.   "Incentive Stock Options" means any Stock Option intended to be
               and designated as an "incentive stock option" within the meaning
               of Section 422 of the Code.

          p.   "Non-Qualified Stock Option" means any Stock Option that is not
               an Incentive Stock Option.

          q.   "Normal Retirement" means retirement from active employment with
               the Company, a subsidiary or Affiliate, pursuant to the normal
               retirement provisions of the applicable tax qualified pension
               plan of such employer.

          r.   "Outside Director" shall mean a director who satisfies both (i)
               the requirements for an "outside director" as set forth in
               Section 162m of the Code and Treasury Reg. Section 1.162-
               27(e)(3)(i) promulgated thereunder and (ii) the requirements for
               a "non-employee director" set forth in Rule 16b-3 under the
               Securities Exchange Act of 1934, as amended, or successor
               requirements thereto.

          s.   "Plan" means the Horace Mann Educators Corporation 1991 Stock
               Incentive Plan, as set forth herein and as hereinafter amended
               from time to time.

          t.   "Retirement" means Normal or Early Retirement.

          u.   "Rule 16b-3" means Rule 16b-3, as promulgated by the Commission
               under Section 16(b) of the Exchange Act, as amended from time to
               time.

          v.   "Stock Appreciation Right" means a right granted under Section 6.

          w.   "Stock Option" or "Option" means an option granted under Section
               5.

          x.   "Termination of Employment" means the termination of the
               participant's employment with the Company and any Affiliate. A
               participant employed by an Affiliate shall also be deemed to
               incur a Termination of Employment if the Affiliate ceases to be
               an Affiliate and the participant does not immediately thereafter
               become an employee of the Company or another Affiliate.

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          y.   "Vested" or "Vesting" means (i) with respect to an Option or
               Stock Appreciation Right, that it is exercisable subject to
               whatever or restrictions on exercise may exist by the terms of
               this Plan or the option agreement; and (ii) with respect to
               Common Stock, that no longer has any restrictions.

               In addition, certain other terms used herein have definitions
               given to them in the first place on which they are used.

SECTION 2. Administration.

     The Plan shall be administered by a Committee of the Board, composed of not
     less than two Outside Directors, appointed by and serving at the pleasure
     of the Board. If at any time no Committee shall be in office, the functions
     of the Committee specified in the Plan shall be exercised by the Board.

     The Committee shall have plenary authority to grant Awards to existing and
     prospective officers, employees and directors of the Company or an
     Affiliate.

     Among other things, the Committee shall have the authority, subject to the
     terms of the Plan:

          (a)  to select the existing and prospective officers, employees and
               directors to whom Awards may from time to time be granted;

          (b)  to determine whether and to what extend Incentive Stock Options,
               Non-Qualified Stock Options, Stock Appreciation Rights and Common
               Stock or any combination thereof are to be granted hereunder;

          (c)  to determine the number of shares of Common Stock to be covered
               by each Award granted hereunder;

          (d)  to determine the terms and conditions of any Award granted
               hereunder (including, but not limited to, the share price, any
               Vesting restriction or limitation and any Vesting acceleration or
               forfeiture waiver regarding any Award and the shares of Common
               Stock relating thereto, based on such factors as the Committee
               shall determine);

          (e)  to adjust the terms and conditions, at any time or from time to
               time, of any Award, including with respect to performance goals
               and measurements applicable to performance-based Awards pursuant
               to the terms of the Plan; and

          (f)  to determine to what extent and under what circumstances Common
               Stock and other amounts payable with respect to an Award shall be
               deferred.

     The Committee shall have the authority to adopt, alter and repeal such
     administrative rules, guidelines and practices governing the Plan as it
     shall, from time to time, deem advisable, to

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     interpret the terms and provisions of the Plan and any Award issued under
     the Plan (and any agreement relating thereto) and to otherwise supervise
     the administration of the Plan.

     The Committee may act only by a majority of its members then in office,
     except that the members thereof may authorize any one or more of their
     number or any officer of the Company to execute and deliver documents on
     behalf of the Committee.

     Any determination made by the Committee pursuant to the provisions of the
     Plan with respect to any Award shall be made in its sole discretion at the
     time of the grant of the Award or, unless in contravention of any express
     term of the Plan, at any time thereafter. All decisions made by the
     Committee pursuant to the provisions of the Plan shall be final and binding
     on all persons, including the Company and Plan participants.

SECTION 3. Common Stock Subject to Plan.

     Initially, the total number of shares of Common Stock reserved and
     available for distribution pursuant to Awards under the Plan was 2,000,000
     shares. Pursuant to the 2-for-1 split of Common Stock effective December
     15, 1997, an additional 2,000,000 shares of Common Stock were reserved and
     available for distribution pursuant to Awards under the Plan. Such shares
     may consist, in whole or in part, of authorized and unissued shares or
     treasury shares.

     The number of shares with respect to which Stock Options or Stock
     Appreciation Rights may be granted during any calendar year to any one
     person (awards of Stock Options and of Stock Appreciation Rights granted in
     tandem with each other being deemed to have been granted with respect to
     the same shares) shall not in the aggregate exceed 500,000.

     Subject to Section 6(b)(iv), if any shares of Common Stock that have been
     optioned cease to be subject to a Stock Option, if any shares of Common
     Stock that are subject to any Award are forfeited or if any Award otherwise
     terminates without a payment being made to the participant in the form of
     Common Stock, such shares shall again be available for distribution in
     connection with Awards under the Plan; provided, the person holding such
     Award received no benefits of ownership (within the meaning of Rule 16b-3
     while holding such Award).

     In the event of any merger, reorganization, consolidation,
     recapitalization, stock dividend, spin-off, stock split, extraordinary
     distribution with respect to the Common Stock or other similar change in
     corporate structure affecting the Common Stock, such substitution or
     adjustments shall be made in the aggregate number of shares reserved for
     issuance under the Plan, in the number and option price of shares subject
     to outstanding Stock Options and Stock Appreciation Rights, and the number
     of shares subject to other outstanding Awards granted under the Plan as may
     be determined to be appropriate by the Committee, in its sole discretion;
     provided, however, that the number of shares subject to any Award shall
     always be a whole number. Such adjusted option price shall also be used to
     determine the amount payable by the Company upon the exercise of any Stock
     Appreciation Right associated with any Stock Option.

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SECTION 4. Eligibility.

     Existing and prospective officers, employees and directors of the Company
     and its Affiliates who are or who are expected to be responsible for or
     contribute to the management, growth and profitability of the business of
     the Company and its Affiliates are eligible to be granted Awards under the
     Plan.

SECTION 5. Stock Options.

     Stock options may be granted alone or in addition to other Awards granted
     under the Plan and may be of two types: Incentive Stock Options and Non-
     Qualified Stock Options. Any Stock Option granted under the Plan shall be
     in such form as the Committee may from time to time approve.

     The committee shall have the authority to grant any optionee Incentive
     Stock Options, Non-Qualified Stock Options or both types of Stock Options
     (in each case with or without Stock Appreciation Rights). Incentive Stock
     Options may be granted only to employees of the Company and its
     subsidiaries (within the meaning of Section 425(f) of the Code). To the
     extent that any Stock Option is not designated as an Incentive Stock Option
     or even if so designated does not qualify as an Incentive Stock Option, it
     shall constitute a Non-Qualified Stock Option.

     Stock Options shall be evidenced by option agreements, the terms and
     provisions of which may differ. An option agreement shall indicate on its
     face whether it is an agreement for an Incentive Stock Option or a Non-
     Qualified Stock Option. The grant of a Stock Option shall occur on the date
     the Committee by resolution selects an individual to be a participant in
     any grant of a Stock Option, determines the number of shares of Common
     Stock to be subject to such Stock Option to be granted to such individual
     and specifies the terms and provisions of the option agreement. The Company
     shall notify a participant of any grant of a Stock Option, and a written
     option agreement or agreements shall be duly executed and delivered by the
     Company to the participant. Such agreement or agreements shall become
     effective upon execution by the participant.

     Anything in the Plan to the contrary notwithstanding, no term of the Plan
     relating to Incentive Stock Options shall be interpreted, amended or
     altered nor shall any discretion or authority granted under the Plan be
     exercised so as to disqualify the Plan under Section 422 of the Code or,
     without the consent of the optionee affected, to disqualify any Incentive
     Stock Option under such Section 422.

     Options granted under the Plan shall be subject to the following terms and
     conditions and shall contain such additional terms and conditions as the
     Committee shall deem desirable:

          (a)  Option Price. The option price per share of Common Stock
               purchasable under an Incentive Stock Option shall not be less
               than the Fair Market Value of the Common Stock subject to the
               Option at time of grant. The option price of a Non-Qualified
               Stock Option shall be the Fair Market Value of the Common Stock
               subject to the Option on the

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               date of grant.

          (b)  Option Term. The term of each Stock Option shall be fixed by the
               Committee, but no Stock Option shall be exercisable more than 10
               years after the date the Option is granted.

          (c)  Vesting. Subject to Section 5(a) and 8(a)(i), Stock Options shall
               be Vested at such time or times and subject to such terms and
               conditions as shall be determined by the Committee. If the
               Committee provides that any Stock Option is Vested only in
               installments, the Committee may at any time waive such
               installment Vesting provisions, in whole or in part, based on
               such factors as the Committee may determine. In addition, the
               Committee may at any time accelerate the Vesting of any Stock
               Option.

          (d)  Method of Exercise. Subject to the provisions of this Section 5,
               Stock Options may be exercised, in whole or in part, at any time
               during the option period by giving written notice of exercise to
               the Company specifying the number of shares of Common Stock
               subject to the Stock Option to be purchased.

               Such notice shall be accompanied by payment in full of the
               purchase price by certified or bank check or such other
               instrument as the Company may accept. If approved by the
               Committee, payment in full or in part may also be made in the
               form of unrestricted Common Stock already owned by the optionee
               of the same class as the Common Stock subject to the Stock Option
               and, in the case of the exercise of a Non-qualified Stock Option,
               Common Stock with restrictions subject to an Award hereunder
               which is of the same class as the Common Stock subject to the
               Stock Option (based, in each case, on the Fair Market Value of
               the Common Stock on the date the Stock Option is exercised);
               provided, however, that, in the case of an Incentive Stock
               Option, the right to make a payment in the form of already owned
               shares of Common Stock of the same class as the Common Stock
               subject to the Stock Option may be authorized only at the time
               the Stock Option is granted.

               If payment of the option exercise price of a Non-Qualified Stock
               Option is made in whole or in part in the form of Common Stock
               with restrictions, the number of shares of Common Stock to be
               received upon such exercise equal to the number of shares of such
               Common Stock with restrictions used for payment of the option
               exercise price shall be subject to the same forfeiture
               restrictions or deferral limitations to which such Common Stock
               with restrictions was subject, unless otherwise determined by the
               Committee.

               No shares of Common Stock shall be issued until full payment
               therefor has been made. Subject to any forfeiture restrictions or
               deferral limitations that may apply if a Stock Option is
               exercised using Common Stock with restrictions, an optionee shall
               have all of the rights of a stockholder of the Company holding
               the class or series of Common Stock that is subject to such Stock
               Option (including, if applicable, the right to vote the shares
               and the right to receive dividends), when the optionee has given
               written notice of

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               exercise, has paid in full for such shares and, if requested, has
               given the representation described in Section 11(a).

          (e)  Non-transferability of Options. No Stock Option shall be
               transferable by the optionee other than by will or by the laws of
               descent and distribution, and all Stock Options shall be
               exercisable, during the optionee's lifetime, only by the optionee
               or by the guardian or legal representative of the optionee, it
               being understood that the terms "holder" and "optionee" include
               the guardian and legal representative of the optionee named in
               the option agreement and any person to whom an option is
               transferred by will or the laws of descent and distribution.
               Notwithstanding the foregoing, a Stock Option which is granted to
               a Director may be transferred to the spouse or lineal descendant
               of the Director optionee or to the trustee of a trust for the
               primary benefit of a spouse or lineal descendent. Such assignee
               shall be subject to all of the terms and provisions of the Plan.

          (f)  Termination by Death. If an optionee incurs a Termination of
               Employment by reason of death, any Stock Option held by such
               optionee may thereafter be exercised, to the extent that Vested
               or such other option outstanding and not Vested for which Vesting
               may be accelerated as the Committee may determine, for a period
               of one year (or such shorter period as the Committee may specify
               at grant) from the date of such death or until the expiration of
               the stated term of such Stock Option, whichever period is the
               shorter.

          (g)  Termination by Reason of Disability. If an optionee incurs a
               Termination of Employment by reason of Disability, any Stock
               Option held by such optionee may thereafter be exercised by the
               optionee, to the extent it was Vested at the time of termination
               or such other option outstanding and not Vested for which Vesting
               may be accelerated as the Committee may determine, for a period
               of one year (or such shorter period as the committee may specify
               as grant) from the date of such Termination of Employment or
               until the expiration of the stated term of such Stock Option,
               whichever period is the shorter; provided, however, that if the
               optionee dies within such one-year period (or such shorter
               period), any unexercised Stock Option held by such optionee
               shall, notwithstanding the expiration of such one-year (or such
               shorter) period, continue to be Vested to the extent to which it
               was Vested at the time of death for a period of 12 months from
               the date of such death or until the expiration of the stated term
               of such Stock Option, whichever period is the shorter. In the
               event of Termination of Employment by reason of Disability, if an
               Incentive Stock Option is exercised after the expiration of the
               exercise periods that apply for purposes of Section 422 of the
               Code, such Stock Option will thereafter be treated as a Non-
               Qualified Stock Option.

          (h)  Termination by Reason of Retirement. If an optionee incurs a
               Termination of Employment by reason of Retirement, any Stock
               Option held by such optionee which was unvested at the time of
               such Retirement, will become Vested one year after the optionee's
               date of Termination by reason of Retirement. Further, such
               optionee may exercise such Stock Options for a period of one year
               thereafter or until the expiration of the stated term of such
               Stock Option, whichever period is the shorter; provided, however,
               that if the optionee dies within such one-year (or such shorter)
               period any unexercised Stock Option held by such optionee shall,
               notwithstanding the expiration of such one-

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               year (or such shorter) period, continue to be Vested to the
               extent to which it was Vested at the time of death for a period
               of 12 months from the date of such death or until the expiration
               of the stated term of such Stock Option, whichever period is the
               shorter. In the event of Termination of Employment by reason of
               Retirement, if an Incentive Stock Option is exercised after the
               expiration of the exercise periods that apply for purposes of
               Section 422 of the Code, such Stock Option will thereafter be
               treated as a Non-Qualified Stock Option.

          (i)  Other Termination. Unless otherwise determined by the Committee,
               if an optionee incurs a Termination of Employment for any reason
               other than death, Disability or Retirement, any Stock Option held
               by such optionee shall thereupon terminate, except that if such
               Termination of Employment of the optionee is involuntary and
               without Cause, such Stock Option shall be fully Vested and may be
               exercised within the lesser of six months from the date of such
               Termination of Employment or the balance of such Stock Option's
               term. Notwithstanding the foregoing, if an optionee incurs a
               Termination of Employment at or after a Change in Control (as
               defined in Section 8(b)), other than by reason of death,
               Disability or Retirement, any Stock Option held by such optionee
               shall be Vested and may be exercised within the lesser of (1) six
               months and one day from the date of such Termination of
               Employment, and (2) the balance of such Stock Option's term.
               Unless otherwise determined by the Committee, for the purposes of
               the Plan "Cause" shall mean (1) the conviction of the optionee
               for committing a felony under Federal law or the law of the state
               in which such action occurred, (2) dishonesty in the course of
               fulfilling the optionee's employment duties or (3) willful and
               deliberate failure on the part of the optionee to perform his
               employment duties in any material respect.

SECTION 6. Stock Appreciation Rights

     (a)  Grant and Exercise. Stock Appreciation Rights may be granted in
          conjunction with all or part of any Stock Option granted under the
          Plan. In the case of a Non-Qualified Stock Option, such rights may be
          granted either at or after the time of grant of such Stock Option. In
          the case of an Incentive Stock Option, such rights may be granted only
          at the time of grant of such Stock Option. A Stock Appreciation Right
          shall terminate and no longer be exercisable upon the termination or
          exercise of the related Stock Option.

          A Stock Appreciation Right may be exercised by an optionee in
          accordance with Section 6(b) by surrendering the applicable portion of
          the related Stock Option in accordance with procedures established by
          the Committee. Upon such exercise and surrender, the optionee shall be
          entitled to receive an amount determined in the manner prescribed in
          Section 6(b). Stock Options which have been so surrendered shall no
          longer be exercisable to the extent the related Stock Appreciation
          Rights have been exercised.

     (b)  Terms and Conditions. Stock Appreciation Rights shall be subject to
          such terms and conditions as shall be determined by the Committee,
          including the following:

          (i)  Stock Appreciation Rights shall be exercisable only at such time
               or times and to the

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               extent that the Stock Options to which they relate are Vested in
               accordance with the provisions of Section 5 and this Section 6;
               provided, however, that a Stock Appreciation Right shall not be
               Vested during the first six months of its term by an optionee who
               is actually or potentially subject to Section 16(b) of the
               Exchange Act.

          (ii) Upon the exercise of a Stock Appreciation Right, an optionee
               shall be entitled to receive an amount in cash, shares of Common
               Stock or both equal in value to the excess of the Fair Market
               Value of one share of Common Stock over the option price per
               share specified in the related Stock Option multiplied by the
               number of shares in respect of which the Stock Appreciation Right
               shall have been exercised, with the Committee having the right to
               determine the form of payment.

               In the case of Stock Appreciation Rights relating to Stock
               Options held by optionees who are actually or potentially subject
               to Section 16(b) of the Exchange Act, the Committee:

               (1)  may require that such Stock Appreciation Rights be exercised
                    only in accordance with the applicable "window period"
                    provisions of Rule 16b-3; and

               (2)  in the case of Stock Appreciation Rights relating to Non-
                    Qualified Stock Options, may provide that the amount to be
                    paid upon exercise of such Stock Appreciation Rights during
                    a Rule 16b-3 "window period" shall be based on the highest
                    mean sales price of the Common Stock on the New York Stock
                    Exchange on any day during such "window period".

         (iii) Stock Appreciation Rights shall be transferable only when and to
               the extent that the underlying Stock Option would be transferable
               under Section 5(e).

          (iv) Upon the exercise of a Stock Appreciation Right, the Stock Option
               or part thereof to which such Stock Appreciation Right is related
               shall be deemed to have been exercised for the purpose of the
               limitation set forth in Section 3 on the number of shares of
               Common Stock to be issued under the Plan, but only to the extent
               of the number of shares covered by the Stock Appreciation Right
               at the time of exercise based on the value of the Stock
               Appreciation Right at such time.

SECTION 7. Common Stock Awards

     (a)  Administration. Shares of Common Stock with or without specified
          restrictions may be awarded either alone or in addition to other
          Awards granted under the Plan. The Committee shall determine the
          existing and prospective officers, employees and directors to whom and
          the time or times at which grants of Common Stock will be awarded, the
          number of shares to be awarded to any participant, the time or times
          within which such Awards may be subject to forfeiture and any other
          terms and conditions of the Awards, in addition to those continued in
          Section 7(c).

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          The Committee may condition the grant of Common Stock upon the
          attainment of specified performance goals of the participant or of the
          Company or subsidiary, division or department of the Company for or
          within which the participant is primarily employed or upon such other
          factors or criteria as the Committee shall determine. The provisions
          of Common Stock Awards need not be the same with respect to each
          recipient.

     (b)  Awards and Certificates. Each participant receiving an Award of Common
          Stock shall be issued a certificate in respect of such shares of
          Common Stock. Such certificate shall be registered in the name of such
          participant.

          Each participant receiving an Award of Common Stock with restrictions
          shall be issued a certificate in respect of such shares of Common
          Stock. Such certificate shall be registered in the name of such
          participant and shall bear an appropriate legend referring to the
          terms, conditions, and restrictions applicable to such Award,
          substantially in the following form:

               "The transferability of this certificate and the shares of stock
               represented hereby are subject to the terms and conditions
               (including forfeiture) of the Horace Mann Educators Corporation
               1991 Stock Incentive Plan and a Restricted Stock Agreement.
               Copies of such Plan and Agreement are on file at the offices of
               Horace Mann Educators Corporation, 1 Horace Mann Plaza,
               Springfield, IL 62715."

          The Committee may be required that the certificates evidencing such
          shares of Common Stock with restrictions be held in custody by the
          Company until the restrictions thereon shall have lapsed and that, as
          a condition of any such Award, the participant shall have delivered a
          stock power, endorsed in blank, relating to the Common Stock covered
          by such Award.

     (c)  Terms and Conditions. Shares of Common Stock with restrictions shall
          be subject to the following terms and conditions:

          (i)  Subject to the provisions of the Plan and the Restricted Stock
               Agreement referred to in Section 7(c)(vi), during a period set by
               the Committee, commencing with the date of such Award (the
               "Restriction Period"), the participant shall not be permitted to
               sell, assign, transfer, pledge or otherwise encumber shares of
               such Stock. Within these limits, the Committee may provide for
               the Vesting of such shares in installments and may accelerate
               Vesting, in whole or in part, based on service, performance of
               the participant or of the Company or the subsidiary, division or
               department for which the participant is employed or such other
               factors or criteria as the Committee may determine.

          (ii) Except as provided in this paragraph (ii) and Section 7(c)(i),
               the participant shall have, with respect to the shares of such
               Stock, all of the rights of a stockholder of the Company holding
               the class or series of Common Stock that is the subject of the
               restrictions, including, if applicable, the right to vote the
               shares and the right to receive any cash dividends. Unless
               otherwise determined by the Committee and subject to Section
               11(f) of the Plan, (1) cash dividends on the class or series of

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                Common Stock that is the subject of the restrictions shall be
                automatically deferred and reinvested in additional Common Stock
                with the same or similar restrictions, and (2) dividends on the
                class or series of Common Stock that is the subject of the
                restrictions payable in Common Stock shall be paid in the form
                of Common Stock of the same class with the same restrictions on
                which such dividend was paid.

          (iii) Except for the extend otherwise provided in the applicable
                Restricted Stock Agreement for Sections 7(c)(i), 7(c)(iv) and
                8(a)(ii), upon a participant's Termination of Employment for any
                reason during the Restriction Period, all shares still subject
                to restriction shall be forfeited by the participant.

          (iv)  Except to the extent otherwise provided in Section 8(a)(ii), in
                the event that a participant involuntarily incurs a Termination
                of Employment (other than for Cause), the Committee shall have
                the discretion to waive in whole or in part any or all remaining
                restrictions with respect to any or all of such participant's
                shares of Common Stock.

          (v)   If and when the Restriction Period expires without a prior
                forfeiture of the Common Stock subject to such Restriction
                Period, unlegended certificates for such Vested shares shall be
                delivered to the participant.

          (vi)  Each Award shall be confirmed by, and be subject to the terms
                of, a Restricted Stock Agreement.

SECTION 8. Change In Control Provisions.

     (a)  Impact of Event. Notwithstanding any other provision of the Plan to
          the contrary, in the event of a Change in Control (as defined in
          Section 8(b)), with regard to existing (not prospective) officers,
          employees and directors of the Company or an Affiliate:

          (i)   Any Stock Appreciation Rights and Stock Options outstanding as
                of the date such Change in Control is determined to have
                occurred and not then Vested shall become fully Vested;
                provided, however, that, in the case of the holder of Stock
                Appreciation Rights who is actually subject to Section 16(b) of
                the Exchange Act, such Stock Appreciation Rights shall have been
                outstanding for at least six months prior to exercise.

          (ii)  The restrictions and deferral limitations applicable to any
                Common Stock with restrictions shall lapse, and such Common
                Stock shall become free of all restrictions and become fully
                Vested and transferable to the full extent of the original
                grant.

     (b)  Definition of Change in Control. For purposes of the Plan, a "Change
          in Control" shall mean the happening of any of the following events:

          (i)   there shall be consummated (1) any consolidation or merger of
                the Company in which the Company is not the continuing or
                surviving corporation, or pursuant to which shares of the
                Company's Common Stock would be converted into cash, securities
                or other property, other than a merger of the company in which
                no

                                      -11-
<PAGE>

                Company shareholder's ownership percentage in the surviving
                corporation immediately after the merger is less than such
                shareholder's ownership percentage in the Company immediately
                prior to such merger by ten percent (10%) or more; or (2) any
                sale, lease exchange or other transfer (in one transaction or in
                a series of related transactions) of all, or substantially all,
                of the assets of the Company;

          (ii)  the shareholders of the Company approve any plan or proposal for
                the liquidation or dissolution of the Company which is a part of
                a sale of assets, merger, or reorganization of the Company or
                other similar transaction;

          (iii) any "person" as such term is used in Sections 13(d) and 14(d) of
                the Exchange Act, other than The Fulcrum III Limited
                Partnership, The Second Fulcrum III Limited Partnership and
                Gibbons, Goodwin, van Amerongen L.P., is or becomes, directly or
                indirectly, the "beneficial owner," as defined in Rule 13d-3
                under the Exchange Act, of securities of the Company that
                represent 51% or more of the combined voting power of the
                Company's then outstanding securities; or

          (iv)  a majority of the members of the Company's Board of Directors
                are persons who are then serving on the Board of Directors
                without being elected by the Board of Directors or having been
                nominated by the Company for election by its shareholders.

SECTION 9. Amendments and Termination.

     The Board may amend, alter, or discontinue the Plan, but no amendment,
     alteration or discontinuation shall be made which would (i) impair the
     rights of an optionee under a Stock Option or a recipient of a Stock
     Appreciation Right and Common Stock Award theretofore granted without the
     optionee's or recipient's consent, except such an amendment made to cause
     the Plan to qualify for the exemption provided by Rule16b-3 or (ii)
     disqualify the Plan from the exemption provided by Rule 16b-3. In addition,
     no such amendment shall be made without the approval of the Company's
     stockholders to the extent such approval is required by law or agreement.

     The Committee may amend the terms of any Stock Option or other Award
     theretofore granted, prospectively or retroactively, but no such amendment
     shall impair the rights of any holder without the holder's consent, except
     such an amendment made to cause the Plan or Award to qualify for the
     exemption provided by Rule 16b-3. The Committee may also substitute new
     Stock Options for previously granted Stock Options, including previously
     granted Stock Options having higher option prices.

     Subject to the above provisions, the Board shall have authority to amend
     the Plan to take into account changes in law and tax and accounting rules,
     as well as other developments and to grant Awards which qualify for
     beneficial treatment under such rules without shareholder approval.

SECTION 10. Unfunded Status of Plan.

     It is presently intended that the Plan constitute an "unfunded" plan for
     incentive and deferred

                                      -12-
<PAGE>

     compensation. The Committee may authorize the creation of trusts or other
     arrangements to meet the obligations created under the Plan to deliver
     Common Stock or make payments; provided, however, that, unless the
     Committee otherwise determines, the existence of such trusts or other
     arrangements is consistent with the "unfunded" status of the Plan.

SECTION 11. General Provisions.

     (a)  The Committee may require each person purchasing or receiving shares
          pursuant to an Award to represent to and agree with the Company in
          writing that such person is acquiring the shares without a view to the
          distribution thereof. The certificates for such shares may include any
          legend which the Committee deems appropriate to reflect any
          restrictions on transfer.

          All certificates for shares of Common Stock or other securities
          delivered under the Plan shall be subject to such stock transfer
          orders and other restrictions as the Committee may deem advisable
          under the rules, regulations and other requirements of the Commission,
          any stock exchange upon which the Common Stock is then listed and any
          applicable Federal or state securities law, and the Committee may
          cause a legend or legends to be put on any such certificates to make
          appropriate reference to such restrictions.

     (b)  Nothing contained in the Plan shall prevent the Company or an
          Affiliate from adopting other or additional compensation arrangements
          for its employees.

     (c)  The adoption of the Plan shall not confer upon any employee any right
          to continue employment nor shall it interfere in any way with the
          right of the Company or an Affiliate to terminate the employment of
          any employee at any time.

     (d)  No later than the date as of which an amount first becomes includible
          in the gross income of the participant for Federal income tax purposes
          with respect to any Award under the Plan, the participant shall pay
          the Company, or make arrangements satisfactory to the Company
          regarding the payment of, any Federal, state, local or foreign taxes
          of any kind required by law to be withheld with respect to such
          amount. Unless otherwise determined by the Company, withholding
          obligations may be settled with Common Stock, including Common Stock
          that is part of the Award that gives rise to the withholding
          requirement. The obligations of the Company under the Plan shall be
          conditional on such payment or arrangements, and the Company and its
          Affiliates shall, to the extent permitted by law, have the right to
          deduct any such taxes from any payment otherwise due to the
          participant.

     (e)  At the time of grant, the Committee may provide in connection with any
          grant made under the Plan that the shares of Common Stock received as
          a result of such grant shall be subject to a right of first refusal
          pursuant to which the participant shall be required to offer to the
          Company any shares that the participant wishes to sell at the then
          Fair Market Value of the Common Stock, subject to such other terms and
          conditions as the Committee may specify at the time of grant.

                                      -13-
<PAGE>

     (f)  The reinvestment of dividends in additional Common Stock with
          restrictions at the time of any dividend payment shall only be
          permissible if sufficient shares of Common Stock are available under
          Section 3 for such reinvestment (taking into account then outstanding
          Stock Options and other Awards).

     (g)  The Committee shall establish such procedures as it deems appropriate
          for a participant to designate a beneficiary to whom any amounts
          payable in the event of the participant's death are to be paid.

     (h)  Pursuant to this Plan, the Company is vested with authority to assist
          an optionee to whom an Award is granted hereunder (including any
          director or officer of the Company or any of its Affiliates who is
          also an optionee) in the payment of the purchase price or other
          amounts payable in connection with the receipt or exercise of that
          Award, by leading such amounts to such optionee on such terms and at
          such rates of interest and upon such security (or unsecured) as shall
          have been authorized by the Board or the Committee.

     (i)  The Plan and all Awards made and actions taken thereunder shall be
          governed by and construed in accordance with the laws of the State of
          Delaware.

SECTION 12. Effective Date of Plan.

     The Plan shall be effective on October 15, 1991. This Plan document amends
     and restates the 1991 Stock Incentive Plan and is effective December 31,
     1999.

                                      -14-<PAGE>

                                                                 Exhibit 10.5(a)
                        HORACE MANN EDUCATORS CORPORATION
                             STOCK OPTION AGREEMENT
                           (1991 Stock Incentive Plan)
                               (EMPLOYEE VERSION)

     This Stock Option Agreement ("Agreement") is made and entered into as of
the Date of Grant indicated below by and between Horace Mann Educators
Corporation, a Delaware corporation (the "Company"), and the person named below
as Employee.

     WHEREAS, the Company has offered shares of common stock, par value $.001
per share, of the Company (the "Common Stock") to the public; and

     WHEREAS, Employee is an employee of the Company and/or one or more of its
Affiliates; and

     WHEREAS, pursuant to the Company's 1991 Employee Stock Incentive Plan (the
"Plan"), the committee of the Board of Directors of the Company administering
the Plan (the "Committee") has approved the grant to Employee of an option to
purchase shares of Common Stock, on the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the foregoing recitals and the
covenants set forth herein, the parties hereto hereby agree as follows:

     1. Grant of Option; Certain Terms and Conditions. The Company hereby grants
to Employee, and Employee hereby accepts, as of the Date of Grant, an option to
purchase the number of shares of Common Stock indicated below (the "Option
Shares") at the Exercise Price per share indicated below, which option shall
expire at 5:00 o'clock p.m. (local time at the Company's principal executive
office) on the Expiration Date indicated below and shall be subject to all of
the terms and conditions set forth in this Agreement (the "Option"). On the Date
of Grant and on each of the first, second, and third anniversaries of the Date
of Grant, the Option shall be Vested as to that number of Option Shares (rounded
to the nearest whole share) equal to the total number of Option Shares
multiplied by the Annual Vesting Rate indicated below.

Employee:
--------

Date of Grant:
-------------

Number of
---------
Option Shares:
-------------

Exercise Price
--------------
per Option Share:
----------------

Expiration Date:
---------------

Annual Vesting
Rate:
--------------
<PAGE>

     The Option is intended to be an Incentive Stock Option to the extent
permitted by Section 422(d) of the Code. That part of the Option which cannot
qualify as an Incentive Stock Option shall be a Non-Qualified Stock Option.

     2. Acceleration and Termination of Option.

          (a) Termination by Death. If an Employee incurs a Termination of
     Employment by reason of death, any Stock Option held by such Employee will
     become fully Vested on the date of Death and may thereafter be exercised,
     for a period of one year (or such other period as the Committee may
     specify) from the date of such death or until the expiration of the stated
     term of such Stock Option, whichever period is the shorter.

          (b) Termination by Reason of Disability. If an employee incurs a
     Termination of Employment by reason of Disability, any Stock Option held by
     such Employee may thereafter be exercised by the Employee, to the extent it
     was Vested at the time of termination, for a period of one year from the
     date of such Termination of Employment or until the expiration of the
     stated term of such Stock Option, whichever period is the shorter;
     provided, however, that if the Employee dies within such one-year period,
     any unexercised Stock Option held by such Employee shall, notwithstanding
     the expiration of such one-year period, continue to be exercisable for a
     period of 12 months from the date of such death or until the expiration of
     the stated term of such Stock Option, whichever period is the shorter.

          (c) Termination by Reason of Retirement. If an Employee incurs a
     Termination of Employment by reason of Retirement, any Stock Option held by
     such Employee will become fully Vested one year after the date of
     Retirement (First Year Retirement Anniversary Date) and may thereafter be
     exercised by the Employee, for a period of one year from the date of the
     First Year Retirement Anniversary Date or until the expiration of the
     stated term of such Stock Option, whichever period is the shorter. If the
     Employee dies prior to the First Year Retirement Anniversary Date, any
     Stock Option held by the Employee shall be fully Vested on the date of
     death and any unexercised Stock Option shall continue to be exercisable for
     a period of 12 months from the date of such death or until the expiration
     of the stated term of such Stock Option, whichever period is the shorter.

          (d) Other Termination. Unless otherwise determined by the Committee,
     if an Employee incurs a Termination of Employment for any reason other than
     death, Disability or Retirement, any Stock Option held by such Employee
     shall thereupon terminate, except that if such Termination of Employment of
     the Employee is involuntary and without Cause, such Stock Option shall be
     fully Vested and may be exercised within the lesser of six months from the
     date of such Termination of Employment or the balance of such Stock
     Option's term. Notwithstanding the foregoing, if an Employee incurs a
     Termination of Employment at or after a Change in Control, other than by
     reason of death, Disability or Retirement, any Stock Option held by such
     Employee shall be Vested and may be exercised within the lesser of (1) six
     months and one day from the date of such Termination of Employment, and (2)
     the balance of such Stock Option's term.

                                      -2-
<PAGE>

     3. Adjustments. In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, spin-off, stock split, extraordinary
distribution with respect to the Common Stock or other similar change in
corporate structure affecting the Common Stock, such substitution or adjustments
shall be made in the aggregate number of shares reserved for issuance under the
Plan, in the number and option price of shares subject to outstanding Stock
Options and Stock Appreciation Rights, and the number of shares subject to other
outstanding Awards granted under the Plan as may be determined to be appropriate
by the Committee, in its sole discretion; provided, however, that the number of
shares subject to any Award shall always be a whole number.

     4. Exercise. The Option shall be exercisable during Employee's lifetime
only by Employee or by his or her guardian or legal representative, and after
Employee's death only by the person or entity entitled to do so under Employee's
last will and testament or applicable intestate law. The Option may only be
exercised by the delivery to the Company of a written notice of such exercise,
which notice shall specify the number of Option Shares to be purchased (the
"Purchased Shares") and the aggregate Exercise Price for such shares (the
"Exercise Notice"), together with payment in full of such aggregate Exercise
Price in cash or by bank check payable to the Company; provided, however, that
payment of such aggregate Exercise Price may instead be made, in whole or in
part, by the delivery to the Company of a certificate or certificates
representing shares of Common Stock, duly endorsed or accompanied by a duly
executed stock powers, which delivery effectively transfers to the Company good
and valid title to such shares, free and clear of any pledge, commitment, lien,
claim or other encumbrance (such shares to be valued on the basis of the
aggregate Fair Market Value thereof on the date of such exercise), provided that
the Company is not then prohibited from purchasing or acquiring such shares of
Common Stock. Such notice shall also specify the number of Purchased Shares
which are acquired pursuant to the exercise of an Incentive Stock Option and
pursuant to the exercise of a Non-Qualified Stock Option. In the absence of such
designation, Purchased Shares shall be deemed to be acquired first from the
exercise of an Incentive Stock Option.

     5. Payment of Withholding Taxes. If the Company is obligated to withhold an
amount on account of any federal, state or local tax imposed as a result of the
exercise of the Option, including, without limitation, any federal, state or
other income tax, or any F.I.C.A., state disability insurance tax or other
employment tax, then Employee shall, concurrently with such exercise, pay such
amount to the Company in cash or by check payable to the Company or by reducing
the number of shares of Common Stock to be issued and delivered to Employee upon
such exercise (such reduction to be valued on the basis of the aggregate Fair
Market Value (determined on the date of such exercise) of the additional shares
of Common Stock that would otherwise have been issued and delivered upon such
exercise), provided that the Company is not then prohibited from purchasing or
acquiring such additional shares of Common Stock.

     6. Stock Exchange Requirements; Applicable Laws. All certificates for
shares of Common Stock or other securities delivered under this Agreement shall
be subject to such stock transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Commission, any stock exchange upon which the Common Stock is then listed and
any applicable Federal or state securities law, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

                                      -3-
<PAGE>

     7. Nontransferability. Neither the Option nor any interest therein may be
sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred
in any manner other than by will or the laws of descent and distribution.

     8. Plan. The Option is granted pursuant to the Plan, as in effect on the
Date of Grant, and is subject to all the terms and conditions of the Plan, as
the same may be amended from time to time, and the Plan's definitions are hereby
incorporated by reference herein; provided, however, that no such amendment
shall deprive Employee, without his or her consent, of the Option or of any
Employee's rights under this Agreement. The interpretation and construction by
the Committee of the Plan, this Agreement, the Option and such rules and
regulations as may be adopted by the Committee for the purpose of administering
the Plan shall be final and binding upon Employee. Until the Option shall
expire, terminate or be exercised in full, the Company shall, upon written
request therefor, send a copy of the Plan, in its then-current form, to Employee
or any other person or entity then entitled to exercise the Option.

     9. Stockholder Rights. No person or entity shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of any Option Shares
until the Option shall have been duly exercised to purchase such Option Shares
in accordance with the provisions of this Agreement.

     10. Employment Rights. No provision of this Agreement or of the Option
granted hereunder shall (a) confer upon Employee any right to continue in the
employ of the Company or any of its subsidiaries, (b) affect the right of the
Company and each of its subsidiaries to terminate the employment of Employee,
with or without cause, or (c) confer upon Employee any right to participate in
any employee welfare or benefit plan or other program of the Company or any of
its subsidiaries other than the Plan.

     11. Governing Law. This Agreement and the Option granted hereunder shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware.

     12. Investment Representation and Agreement. The Committee may require
Employee to furnish to the Company, prior to the issuance of any shares upon the
exercise of all or any part of this option, an agreement (in such form as such
Committee may specify) in which Employee represents that the shares acquired by
him upon exercise are being acquired for investment and not with a view to the
sale or distribution thereof.

     13. Entire Agreement. This Agreement, together with the Plan, constitutes
the entire obligation of the parties hereto with respect to the subject matter
hereof and shall supersede any prior expressions of intent or understanding with
respect to this transaction. Employee hereby acknowledges receipt of a copy of
the Plan.

     14. Amendment. Any amendment hereto shall be in writing and signed by the
parties hereto.

                                      -4-
<PAGE>

     15. Waiver; Cumulative Rights. The failure or delay of either party to
require performance by the other party of any provision hereof shall not affect
its right to require performance of such provision unless and until such
performance has been waived in writing. Each and every right hereunder is
cumulative and may be exercised in part or in whole from time to time.

     16. Counterparts. This Agreement may be signed in two counterparts.

     17. Headings. The headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

     IN WITNESS WHEREOF, the Company and Employee have duly executed this
Agreement as of the Date of Grant.

                                        HORACE MANN EDUCATORS CORPORATION

                                        By:
                                            ------------------------------------
                                            Name:  Louis Lower II
                                            Title: President and Chief Executive
                                                   Officer

                                        ----------------------------------------
                                                Employee

                                      -5-

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