CHATTANOOGA, Tenn., Apr 07, 2009 (BUSINESS WIRE) -- Unum (NYSE:UNM) maintained its market leadership in cases and employees
covered by its group long term care product in 2008, noting gains among
existing customers who either expanded coverage to more employees or
increased the benefit amount. The industry as a whole saw benefit
increases to existing plans more than double in 2008, according to
annual sales research from LIMRA. 1
"Business leaders realize that financial security is a priority for
today's workers," said John Noble, Unum's director of Long Term Care
Products. "Long term care insurance is an important component of a
comprehensive financial plan and a differentiating employee benefit."
Unum covers more than 715,000 working-age Americans and holds 77 percent
of the employer group long term care insurance contracts in the United
States. In 2008, Unum added more than 900 new customer groups and nearly
63,000 new employees to its group long term care plans.
And nearly 30,000 employees from current Unum customers added the
coverage through their employer-sponsored plan last year.
"Because the workforce is aging and lifestyles change, we realize the
importance of going back to our current customers to be sure the long
term care insurance needs of their employees are met," said Noble. "We
also saw a 74 percent growth rate among our current participants
increasing their benefit amount."
The need for a more substantial benefit amount is a reflection of the
times. Twenty years ago when Unum entered the long term care market, a
$1,500 a month benefit was considered a "rich plan." Now it takes a
$6,000 monthly benefit to cover the average annual cost of a nursing
"Within the insurance industry, long term care insurance is still a
relatively new benefit option," Noble said. "But employers and employees
realize that the financial security long term care insurance provides is
a benefit they can't afford not to have."
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 paid nearly $6 billion in total benefits
to customers in 2008.
1 U.S. Group Long-Term Care Insurance: 2008 Annual Review,
LIMRA International, 2009.
Amanda Carmichael, 423-294-7839
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