1. © 2004 LTC Financing Strategy Group Index of Long-Term Care Uninsured (all individuals)

2. © 2004 LTC Financing Strategy Group Private Long-Term Care Insurance Penetration of Population with Incomes over $20,000

3. © 2004 LTC Financing Strategy Group Number of Persons in the United States without Insurance for Long-Term Care (millions) (No Medicaid and No Private Insurance)

4. © 2004 LTC Financing Strategy Group Notes Age 45 was chosen as the minimum age since it is a fair reflection of typical employee purchasers as well as the younger end of the individual market. For the purposes of determining market penetration, we exclude individuals with incomes less than $20,000 from the denominator of each age group which necessarily includes those individuals on Medicaid. This is a generally accepted absolute minimum threshold for suitability, though it should be noted that $35, 000 is used by the National Association of Insurance Commissioners (NAIC). Population estimates are derived from the U.S. Census, 2000, Table DP-1 Profile of General Demographic Characteristics: 2000. Income distribution data derived from the Current Population Survey, March 2001, Households by total Money income in 2001, Type of Household, Race, and Hispanic Origin of Householder. Medicaid population estimates derived from A Profile of Medicaid: Chart book 2000, USDHHS. Private LTC Insurance Inforce Distribution by Age and Number derived from HIAA, LTC Insurance in 2001 and Buyers Studies, 2001 as well as LifePlans, Inc. Survey of Top Sellers of LTC Insurance, 2003.