L O N G T E R M C A R E I N S U R A N C E

LTC-140-NY

First Unum Life Insurance Company, 99 Park Avenue, 6th Floor, New York, NY 1006

Questions and Answers about Long Term Care In sur ance

Long Term Care Insurance is underwritten by First Unum Life Insurance Companyunder the UnumProvident brand.

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L ong term care. Ten years

ago, it wasn’t an is sue many Americans

discussed. Now, it is an is sue ev ery one should

not only dis cuss, but plan for. Why? With the

costs of long term care rising, and with the aging

population of American Baby Boomers, the issue is

fast be com ing one of great im por tance. Those who

assume they will nev er need care or expect that the

government will sub si dize long term care needs

may find them selves un pre pared for the financial

ramifications: long term care costs can quick ly

de plete even the strongest fi nan cial portfolio. That’s

why long term care in sur ance is so im por tant in

helping to secure your fi nan cial future and

independence. This bro chure discusses long term care

and pro vides de tails about the types of long term care

insurance avail able from UnumProvident.

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Questions & Answers

1 “Most Americans Unprepared for Long-Term Care Costs,” AARP NewsRelease, December 20, 2001.

2 Health Insurance Association of America (HIAA), “Guide to Long-Term Care Insurance,” ©2002.

3 “Can Aging Baby Boomers Avoid the Nursing Home?” AmericanCouncil of Life Insurers (ACLI), 2000.

4 Health Insurance Association of America (HIAA), “Guide to Long-Term-Care Insurance,” ©2002.

5 “Long Term Care,” Natalie Graves Tucker, Enid Kassner, Faith Mullen, and Barbara Coleman, AARP Public Policy In sti tute, May 2000. Source: HCFA Offi ce of the Actuary, 2000.

Why do I need long term care insurance?

Long Term Care (LTC) insurance is one of the best ways to offset long term care expenses and help preserve your assets and your fi nancial future. That’s because without LTC insurance, prolonged expenses can add up — quickly. Just take a glance at these startling statistics:

• Today, the average nursing home stay costs close to $56,000 a year.1

• Bringing an aide into your home just three times a week (two to three hours per visit) to help with dressing, bathing, preparing meals, and similar household chores — can easily cost $1,000 each month or $12,000 a year.2

• The costs of long term care will more than quadruple by 2030.3

According to these statistics, a $250,000 nest egg would last less than fi ve years if you were confi ned to a nursing home.

Doesn’t Medicare or Medicaid pay for long term care services?

Many people believe that the government will pay for the cost of their long term care. But this isn’t always true.

Medicare currently pays just 12 percent of all nurs ing home costs,4 and covers primarily skilled and acute nurs ing home care. Nationally, Medicaid covers ap prox i mate ly 39 per cent of all long term care in the United States.5 However, to qualify for Med ic aid assistance, you must fi rst de plete your assets to poverty level.

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Questions & Answers

What kind of long term care insurance protection does UnumProvident offer?

The long term care insurance sold by UnumProvident Corporation’s insuring companies helps protect against the catastrophic costs of long term care by paying benefi ts when an individual is unable to function independently because of a covered disability or chronic illness. The plans also provide ben e fi ts in the event of severe* cognitive impairment from an illness such as Alzheimer’s disease.

Our long term care insurance plans are fl exible, and offer you a variety of care options. You can customize a policy to meet your unique needs —allowing you the option of choosing where you would like to receive care, whether that be at home or in a nursing or residential care, assisted living or adult day care facility.

Who can purchase coverage?

With our long term care insurance, any individual between the ages of 18 and 80 may apply for coverage. You may purchase coverage for yourself and/or your family members. Depending on the plan you choose, you may be asked to complete a medical application. In some cases, an interview or paramedical ex am i na tion may be required.

When would I be eligible for long term care insurance benefi ts?

You would be eligible for long term care benefi ts when you become chron i cal ly ill or disabled. Being chron i cal ly ill or disabled means you are unable to perform at least two Activities of Daily Living (ADLs). An ADL is an activity such as eating, dressing, bath ing, toileting, transferring, or continence. You may also qualify for benefi ts if you suffer a severe* cognitive im pair ment, requiring substantial su per vi sion to protect you from threats to your health and safety. The ADL loss must be expected to last at least 90 days, as certifi ed by a Licensed Health Care Practitioner.* A written plan of care from a Licensed Health Care Practitioner must be provided, with re-certifi cation every 12 months.

* Italicized language is required by federal law for plans which are intended to be tax-qualifi ed.

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What are some of the available coverage options?

For an additional premium, you may purchase options that 1) help protect against any lapses in coverage, and 2) increase your benefi t payments to help minimize the effect of infl ation.

Can I receive benefi ts for long term care services provided by a family member or friend in my home?

Family and friends are often the pri ma ry support for those needing long term care. Ac cord ing to Family Caregiver Al li ance, ap prox i mate ly one out of four house holds are caring for an in di vid u al 50 years or older in some capacity.6 That’s why we offer you the choice of purchasing an ad di tion al option which provides a benefi t regardless of who provides home care—a relative, immediate family member, friend or licensed pro fes sion al.

What are the advantages of a UnumProvident LTC insurance policy?

6 Family Caregiver Alliance, March 20, 2002, (http://www.caregiver.org/factsheets/long_term_stats.html).

We provide more than just monetary sup-port for our cus tom ers and their fam i lies. Through our LTC Connect® program, you have access to an information and referral service that pro vides answers to questions about long term care services and issues. LTC Connect® also in tro duc es you to a network of providers, which have negotiated reduced rates for skilled nursing and alternate care facilities, residential care facilities, home health services, Adult Day Care, durable medical equipment, hospice care and respite care. LTC Connect® is available to you at no additional cost.

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What are the key components of a tax qualifi ed plan?

A tax qualifi ed plan must provide coverage for treatment and services for a disabled (chronically ill) individual, and all treatment and services must be provided in accordance with a plan of care de vel oped by a Licensed Health Care Prac ti tio ner.

Disabled (chronically ill) is defi ned as:

• The inability to perform at least two Activities of Daily Living (ADLs) without substantial* assistance. These ADLs are eating, bathing,toileting, trans fer ring, dress ing or con ti nence. The loss of an ADL must be expected to last for a period of 90 days or more, as certifi ed by a Licensed Healthcare Practitioner; or

• someone who suffers from severe* cog ni tive impairment that requires substantial supervision.

A tax qualifi ed plan may provide favorable tax treatment. Please consult your tax advisor for details.

Does UnumProvident have the right to raise my LTC insurancepre mi um or cancel my policy?

• We will not cancel your coverage as long as your premiums are paid on time.

• Premiums will not increase as you age or if a claim is fi led.

• If premium rates are increased, it is done only on a class basis, meaning that a change in rate would apply to everyone in that class. Your rates can never be raised just for your policy alone.

Questions & Answers

* Italicized language is required by federal law for plans which are intended to be tax-qualifi ed.

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How much does long term care insurance cost?

The cost for our LTC insurance varies depending on a variety of factors including: the benefi t amount, when ben e fi ts begin, length of benefi t, and if any optional coverage was selected.

7 According to LIMRA’s Long Term Care Insurance Sales and In Force Annual Reports.

Why choose UnumProvident for your long term care insurance?

As one of the nation’s leading disability providers, we offer a range of LTC solutions designed to help preserve the assets ofindividuals from the fi nancial effects of illness and injury. And with more than a century of insurance ex pe ri ence, we back our products with a commitment to provide optimal service. We realize that each situation is as in di vid u al as each person or family. That’s why our long term care insurance offers you the options and fl ex i bil i ty to build a policy that meets your unique needs. That’s also the reason we are consistently rated as one of the nation’s top LTC insurance pro vid ers.7

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LTC-140-NY

©2003 UnumProvident Corporation. All rights reserved.UnumProvident is the marketing brand:

Long Term Care insurance is un der writ ten byUnumProvident Corporation subsidiary:

First Unum Life Insurance Company99 Park Avenue, 6th Floor, New York, NY 10016

www.unumprovident.com

he UnumProvident brand represents resources

of several insuring companies. Marketing under the

UnumProvident brand, these com pa nies provide a wide

range of LTC solutions designed to help preserve

the assets of individuals from the financial effects

of illness and injury.

T

This is not intended to be a complete descriptionof the Long Term Care policy and some coverage options

may not be available in all states. The policy has exclusionsand limitations that may affect any benefi ts payable.For costs and complete details of coverage, refer to

Policy Forms LTCP03, LTCP03F, LTCT03, LTCT03F, RLTCP03, RLTCP03F, NH94, NH94Q or TQB.LTC

or contact your insurance agent or UnumProvident representative.

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