Industry Veteran Urges Consumers to Research Carrier's Financial Strength and History of Rate Stability When Considering a Purchase

NEW YORK, N.Y., November 19, 2003 - Long-term care is a hot topic for consumers today. A leading authority in the industry shares the reasons why adding this product to one's insurance portfolio is a smart move. "Consumers should research the financial stability of the carrier," said Kenneth Grubb, senior vice president of New York Life Insurance Company's long-term care operations. He also advises individuals to think about buying the product early given the lower premiums and greater likelihood of qualifying for coverage.

"Unfortunately, debilitating injuries or illnesses can strike at any time, and it is important to consider long-term care insurance as a way to protect one's hard-earned assets," said Mr. Grubb. "One would not move into a home without considering homeowners insurance. I feel it is prudent to insure against a risk which is more likely to occur-at any age-than having a home burn down."

Mr. Grubb advises consumers to consider the following when purchasing long-term care insurance:

• Research the carrier. Buy from a financially strong and top-rated insurance company that is likely to be secure for the long haul. Long-term care benefits often do not become necessary for 20 or 30 years from the time of purchase.
• Avoid rate increases. Buy from a carrier with a history of stable rates; keep in mind that if a carrier is raising rates now, it may potentially do so several times during the life of the policy.
• Purchase at a young age. Premiums are based on an individual's age at the time of purchase, so the younger the purchaser, the lower the premiums will be for the life of the policy. Unfortunately, many older consumers cannot buy the insurance because they have lost their insurability due to changes in their health.
• Make sure the policy is guaranteed. Be sure that the policy is guaranteed renewable. Many long-term care insurance carriers will guarantee the policy is renewable, assuming premiums are paid on time.
• Do not self-insure. It is usually not prudent to self-insure, even if an individual has significant income and assets. At today's escalating home health care and nursing home rates, an entire nest egg can be depleted in a few years. Affordable insurance can help consumers to enjoy their retirement and leave a legacy to their heirs.
• People are living longer. Life spans are increasing. As the population is growing older, individuals may need long-term care services for a longer period of time and therefore the need for adequate insurance can be even greater.
• Medicare and Medicaid offer limited coverage. Health plans rarely cover long-term care services and Medicare limits benefits for ongoing long-term care services. Medicaid will pay for long-term care but only for individuals who meet strict asset and income eligibility requirements.

"There continues to be widespread confusion over when and from whom to buy long-term care insurance," said Mr. Grubb. "I hope these tips help consumers successfully navigate through the confusion, and highlight the benefits of this type of insurance."

New York Life Insurance Company, a Fortune 100 company, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Founded in 1845 and headquartered in New York City, New York Life offers life insurance, and through its affiliates, annuities and long-term care insurance. New York Life Investment Management LLC, a New York Life affiliate, provides institutional asset management, retirement planning and trust services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Note to editors: Kenneth Grubb is a thirty-year insurance executive, with twelve years in the long-term care industry. He has provided testimony in Congress about long-term care and its consumer benefits, and he currently chairs the Health Insurance Association of America's long-term care committee. To set up an interview with Mr. Grubb or for more information, please contact Lisa Fels at 212-576-7937.

Lisa Fels
New York Life
(212) 576-7937
lisa_fels@newyorklife.com

Marcy Kaplicer
Edelman
212-819-4854
marcy.kaplicer@edelman.com

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