A Snapshot: Women and Life Insurance Research, Reasons, Remedies Beth Hirschhorn Senior Vice President and Chief Marketing Officer, MetLife December 3, 2009

Workplace benefits matter…a lot Majority of Americans now report obtaining a majority of their financial services through the workplace Post-economic downturn, 41% of employees consider workplace benefits the foundation of their financial safety net (up from 33% earlier in the year) Working women, in particular, placing a greater value on comprehensive workplace benefits programs MetLife Study of Employee Benefits Trends, 2009

3 LIMRA: Trends In Life Insurance Ownership Among US Individuals, MetLife Employee Benefits Trend Study 2008 Concern, intent don’t translate to action Very concerned with financial security in the event of premature death 66% 52% Women Men Have taken steps to identify household need for life insurance 56% 65% Women Men Group life insurance ownership among individuals, % 45% Women Men

“If your spouse were to pass away before you/If you were to pass away before your spouse, do you think it would leave you/your spouse financially…” Source: Society of Actuaries, 2009 Risks and Process of Retirement Survey; (Among married Pre-retirees, 2009 n=293) Most assume financial situation won’t change significantly in event of spousal death … better off 16% 28% Survivor = you Survivor = spouse … about the same 63% 60% Survivor = you Survivor = spouse … worse off 21% 12% Survivor = you Survivor = spouse

5 Survivors of premature death are often financially devastated MetLife Premature Death Study 2009 Those Most Impacted Younger (30-50) Women Children under 18 living at home Spouse primary/equal provider Premature death survivors noting devastating / major financial impacts 2 in 3 Premature death survivors who thought amount of life insurance they had was inadequate 2 in 3

6 MetLife Premature Death Study 2009 Most common use of death benefit: Pay for funeral (77%) Financial pressures lead to drastic lifestyle adjustments Report at least 3 financial adjustments 2 in 3 Report at least 1 financial adjustment 4 in 5 70 % Cut discretionary spending 45 % Took money from savings or retirement 24 % Had to move

7 MetLife Premature Death Study 2009 Premature death survivors who felt financially secure Financial and lifestyle effects were long-lasting Prior to death 50% 1-2 years after 35% 2-5 years after 22% 5-7 years after 23%

“Putting the children through college was very hard, and I had to tap into funds I'd saved for retirement.” “We went from financially secure to being unable to even eat without food pantries… It's been a nightmare. I keep waiting to wake up, but never can.” “Everything in my life changed financially. The life insurance death benefit was miniscule and only helped with a couple of small bills.” “Of course, the income is less than half of what it was, but the monthly debts are the same or higher.” “He had a NINE HUNDRED DOLLAR insurance policy, our apartment was part of his salary package, and we had to move almost immediately after his death. I was left with a 21 month old and no place to live. “ In your own words, what, if anything, would you say was the biggest financial adjustment that your family had to make as a results of your spouse’s death? Survivor quotes underscore devastation MetLife Premature Death Study 2009

9 Group life isn’t the problem, underinsurance is MetLife Premature Death Study 2009 How much group life insurance protection did survivors have? Median coverage amount: 1 times income

10 Why underinsurance persists despite a well-designed product Functions well, right amount of access and ease. Not seen as a problem by employers, employees or providers BUT… Employer-paid model has never been consumerized –Delivery and enrollment have remained largely unchanged Employees don’t see the connection between coverage and salary –Typical quote, “Is this a multiple amount of my annual salary?” People aren’t getting professional advice –Women twice as likely to get advice from friends than call agent/advisor Not perceived as a mission critical benefit, like health care and 401(k)

11 The remedy Recognize group life provides an essential safety net for employees Keep the focus on how much protection the employee is getting –A good needs assessment tool goes a long way –So does an off-cycle group life “campaign” –No substitute for professional advice Experiment with 401(k)-type auto enrollment / defaults Room for improvement for part-timers, dependents and portability Talk to people about life insurance in language they understand