A Snapshot: Women and Life InsuranceResearch, Reasons, Remedies

Beth HirschhornSenior 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

3LIMRA: Trends In Life Insurance Ownership Among US Individuals, 2006.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, 2006

36%

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 significantlyin event of spousal death

…better off16%

28%

Survivor = you

Survivor = spouse

…about the same63%

60%

Survivor = you

Survivor = spouse

…worse off21%

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 3Premature death survivors who thought

amount of life insurance they had was inadequate

2 in 3

6MetLife 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 adjustments2 in 3

Report at least 1 financial adjustment4 in 5

70%

Cut discretionaryspending

45%

Took money fromsavings or retirement

24%

Had to move

7MetLife 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