Diane Garofalo Vice President, Long Term Disability Benefits, UNUM December 3, 2009 WISER Symposium Workplace Benefits as a Foundation of Security

2 Workplace Benefits Overview  Workplace benefits extend beyond basic health and retirement products, and fill gaps in employees’ financial safety net  These products include: ● Life ● Disability – both short term and long term ● Long term care ● Supplemental products  Many Americans would not have any financial protection without workplace benefits

3  New blend of benefits to suit the newly blended workforce  Employee paid supplemental insurance: ● Allows workers to buy level of coverage they need to feel secure ● Allows those with no spouse or children to care for them, to choose the insurance that will keep them financially intact while getting the kind of care they want Workplace Benefits Value

4 Disability  Americans face a significant risk of disability during their working lives ● Most underestimate the impact a serious illness or injury will have on their ability to work and how it will impact their income stream  Short Term Disability ● Disabilities lasting fewer than 90 days – a time that could be financially harmful if one has to go weeks without income  Long Term Disability ● Nearly one in five Americans are projected to become disabled for a year or more before age 65 – an event necessitating protection of retirement assets

5 Long Term Care  Need is great, and growing: ● > 65 yrs, 58% men and 79% women will require  Changing family structure  Offsets high cost of care, assistance and facilities  Focuses on activities of daily living

6 Supplemental Products  Products complement core benefits: ● Disability ● Accident ● Critical illness ● Hospital indemnity  Premiums typically paid by employees through payroll deduction ● Payment is triggered upon the occurrence of a qualifying event ● Benefit is a set amount specified in the policy and can be used for any purpose  Women are the primary purchasers of these products ● 69% of disability policies ● 51% of accident policies ● 61% of critical illness policies

7 Shared Responsibilities  Everyone has a role in helping ensure these important benefits continue: ● Employers – education and facilitation of the delivery of affordable benefits ● Private industry - raise the visibility and deliver cost effective solutions ● Government - support for employers and incentives for American workers to better protect themselves and their families  A partnership that will help strengthen the financial safety net for all Americans

8 What Women Should Consider  Workplace benefits are more important than ever to working Americans, especially women  Factors women should consider in reviewing their benefits portfolio ● Learn basics of your policies ● Determine which benefits are portable and/or convertible ● Seek expanded coverage for yourself and your family ● Understand what coverage is available to supplement your employers’ coverage ● Encourage employers to offer robust benefit package, including ancillary benefits