Unum's Annual Landscape Of Long Term Care Debunks Myths That Insurance Is For The Elderly Industry - Leader Highlights Characteristics Of Group Claim

Main Category: Health Insurance / Medical Insurance
Also Included In: Seniors / Aging
Article Date: 09 Nov 2007 - 13:00 PDT

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When Michael Schumann was 41, he bought a long term care insurance policy through his work with IBEW Local 164 in New Jersey. Just four years later, he became a claimant.

Mr. Schumann is representative of nearly 57 percent of Unum's group long term care claimants: He's under the age of 65. For Mr. Schumann, a traumatic brain injury ended his career as a journeyman electrician.

"We had bought our first home just 10 years prior and I thought we would lose it after Michael's accident, because he was the breadwinner," said his wife, Linda Schumann. "I didn't realize Michael had a long term care policy through his employer so it was a wonderful surprise and has brought our family peace of mind."

Unum (NYSE: UNM) lists trauma as one of the top five reasons for which people under 65 use their group long term care coverage. Unum, the leading provider of this coverage, details this and other characteristics of it claims experience in its second annual Landscape of Long Term Care.

"A misconception in the world of long term care is that it is used predominately for the elderly in end-of-life situations," said John Noble, director of long term care products for Unum. "That is clearly not the case."

California-native Pamela Warren illustrates another aspect of Unum's claims experience: "I was only 47 when I woke up with a severe headache that ended up causing a stroke due to a blocked carotid artery," she said. "I have been completely disabled for the past six years."

Ms. Warren's long term care policy helps pay for an aide who comes twice a week and helps with housework, takes her to doctors' appointments and provides companionship. More than 70 percent of Unum's group customers use their long term care benefits for care that occurs in the home.

"Her left arm only lifts half way. Her hand is cramped and fingers pinched. She doesn't walk very well and uses a cane, and her vision and depth perception are affected," says her partner Gary Richeal, a school teacher. "I'm not sure what we would have done without her policy."

Noble says that Unum's sales of the home health care option have increased to more than 93 percent of policies sold, reflecting a desire among policyholders to remain in their own home in a time of need.

The Landscape of Long Term Care analysis of claims trends also reveals:

- The leading causes for claims for workers under-65 are cancer, trauma, stroke and neurological disease.
- More than 72 percent of all claimants in this age group received care at home, while 24 percent received nursing home care.
- A typical claim for Unum policy holders under-65 lasts a year or longer.
- The average age of under-65 claimants is 54, with more than 15 percent younger than 45.
- 64 percent of claims are paid to claimants aged 55 - 65.
- Over $12.8 million paid out to 277 claimants under age 50.

Unum holds 75 percent of the employer group long term care insurance contracts in the United States, covering more than 600,000 working Americans. In addition, the company holds nearly 200,000 individual long term care policies. In 2006, Unum processed more than 4,000 group and individual long term care claims and provided $80 million in total benefits.

Unless referenced otherwise, the statistics included in this news release are based on Unum internal data as of 2007.

About Unum

Unum, formerly UnumProvident, is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum provided $6.2 billion in total benefits to customers in 2006.

http://www.unum.com