1 The Straight Story: Life Insurance Basics for New Parents Beth Hirschhorn Chief Marketing Officer MetLife July 21, 2010

2 The best of intentions For consumers age  The purchase of life insurance is no longer a cultural “must do” it’s a “should do.”  Parenthood begins to tip the scale from should, to must.  More than half of them know they are underinsured AND plan to act!  Many begin – most don’t finish.

3 A fundamental disconnect Younger Consumers Are generally not financially confident Expect to be in control of the interaction Don’t know how much life insurance they should have Don’t know how much it should cost Prefer to self educate before engaging in significant purchases Do not trust commissioned salespeople to help them They turn to the internet for information but are frustrated by what they find Result: 8 in 10 abandon the process Incomplete and contradictory information Lack of information on the cost of life insurance Inconsistent recommendations on “the right amount” No frame of reference for what a good deal is

4 In their own words “I know life insurance is important to have. But when does that come into play?” “… only after the birth of my daughter - we actually decided to stop talking about life insurance, and start doing something about getting it.” “I tried to use a couple of online tools but they were very confusing because they do not give you a straight answer.” “I know enough about life insurance to be dangerous. Just enough to realize I don't know much at all.” “I don't want to be talked into getting something I don't need, or I don't want facts manipulated so that [an agent] will make a better sale.” “I asked for quotes to be ed to me but no company would reply.” “ No one will ever be able to convince me that I wasn’t ripped off.”

5 Sharing the straight story - Simple Facts About Life Insurance 1.IF YOU HAVE DEPENDENTS — YOU NEED IT 2.LIFE INSURANCE HELPS REPLACE YOUR PAYCHECK IF YOU AREN’T THERE TO EARN IT 3.SOME LIFE INSURANCE IS BETTER THAN NO LIFE INSURANCE 4.LIFE INSURANCE IS LESS EXPENSIVE THAN YOU THINK 5.LIFE INSURANCE IS A SMART FINANCIAL MOVE 6.MAKE SURE YOU KNOW HOW MUCH LIFE INSURANCE YOU GET AT WORK 7.LIFE INSURANCE NEEDS CHANGE OVER TIME

6 Simple Facts About Life Insurance 1. IF YOU HAVE DEPENDENTS — YOU NEED IT If you have children or people who depend on the money you earn, you need life insurance. Life insurance helps those you care about keep on living as they would if you were still earning a paycheck. 2.LIFE INSURANCE HELPS REPLACE YOUR PAYCHECK IF YOU AREN’T THERE TO EARN IT 60% of annual income times years to retirement gives you a reasonable estimate of the amount of life insurance to buy. It takes your salary, assumes some normal raises over time, and adds the value of your employee benefits, like healthcare. Then it subtracts the effect of taxes, and what it costs your family to have you around.

7 Simple Facts About Life Insurance 3. SOME LIFE INSURANCE IS BETTER THAN NO LIFE INSURANCE Some life insurance is better than no life insurance. A good starting place is coverage that equals outstanding debt (including mortgage, car payments and student loans) plus 5 years of annual salary. 4.LIFE INSURANCE IS LESS EXPENSIVE THAN YOU THINK Many people think life insurance is much more expensive than it is. In fact, many people can get term coverage from a quality company for a surprisingly low price. A healthy 35 year old can pay as little as $30 a month for $500K of coverage. 1 Life insurance does get more expensive as you get older. It makes sense to buy as much as you need while you’re young and healthy. 1 Rates for term life insurance vary based on gender, age, health and other underwriting factors.

8 Simple Facts About Life Insurance 5.LIFE INSURANCE IS A SMART FINANCIAL MOVE To get the amount of coverage we recommend, you can expect to pay about 1% of your annual salary on the annual cost of term life insurance. (Spending 1% of your income to protect years of income is a pretty good deal.) 6. MAKE SURE YOU KNOW HOW MUCH LIFENSURANCE YOU GET AT WORK Many people assume they have more coverage at work than they really do. We recommend that people look carefully at the amount of coverage they get, then buy additional life insurance, either through their benefits plans at work or on their own, to make sure they have the right amount of coverage for their unique needs.

9 Simple Facts About Life Insurance 7. LIFE INSURANCE NEEDS CHANGE OVER TIME Things like new family members, a new job, a move, or even a raise at work. Review your protection every year during the benefits enrollment period at work or when you receive your Social Security statement in the mail.

10 Breaking down barriers How much do I need? Personalized coverage amount recommendations How much does it cost? Instant online quote provides insight into price No complex or confusing questions No contact information required No sales pressure

11 Get Your Own Straight Story MetLife.com/familyfinance 4 Needs Assessment Tool 4 Instant Quote Tool 4 Simple Facts about Life Insurance Like most insurance policies, MetLife policies contain exclusions, limitations, reduction of benefits and terms for keeping them in force. Term life insurance issued by MetLife Investors USA Insurance Company, Irvine, CA (except NY), policy form #5E and First MetLife Investors Insurance Company, New York, NY (NY only), policy form #5E NY. MetLife Investors USA Insurance Company and First MetLife Investors Insurance Company are members of the MetLife family. Metropolitan Life Insurance Company, New York, NY L [exp0711][All States]

12 “Family Finances Rewired: The Straight Story for New Parents” Questions & Answers

13 Questions & Answers