All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] Speaker: Date: THE VOLUNTARY VALUE FORMULA END ONE-SIZE-FITS-ALL BENEFITS

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 2 The benefits discussion is no longer focused on why you should offer voluntary benefits; now it’s about how. How to mix, match and personalize different products for maximum effectiveness. Satisfying the various needs and interests of a multi-generational, economically diverse workforce requires offering employees a wider range of options so they can customize their benefits. If that sounds costly and complex, it doesn’t have to be. Need + Features + Price = Value Voluntary Value Factors:

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 3 The Voluntary Value Formula incorporates three key factors that are most important to employees when they are assessing their voluntary benefit options: needs, plan and policy features, and product price. When a benefit meets these criteria, an employee is much more likely to perceive the value of the offering, thus more likely to act. Need + Features + Price = Value Voluntary Value Factors:

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 4 Need for Coverage When an employee sees how a product relates to a real life problem, an emotional connection is created. Examples of needs might include replacing lost contact lenses or paying for an unplanned dental crown. Voluntary Value Factors:

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 5 Features that Fit Features preferred by one employee may not have the same appeal to their colleague. Access to designer eyewear or cosmetic dental work may be a deal breaker for some, while others may be more interested in discount offers on bundled auto and homeowner coverage. Voluntary Value Factors:

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 6 The right price is not about the lowest price, it’s about value. Feelings come into play. Peace of mind, protection of loved ones and financial security can all make a benefit “worth the price for me.” Price Perception Voluntary Value Factors:

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 7 More Choice, More Value Voluntary Value Formula: To perceive the value of a voluntary benefit offering, employees must make the connection between their needs and the solution provided by the benefit. Among employees of all ages there is a desire for more personalization, more choice and more support from their workplace benefits. Voluntary benefits can cost-effectively deliver on this desire for choice and self-selection because workers are prepared to pay for the benefits they want. It is important to offer a broad and rich portfolio of voluntary benefit products to enable individuals to identify “benefits that work for me” in the available mix.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] Satisfy an Audience of One Voluntary Value Formula: By choosing products and features that have specific meaning for each segment of the population and framing the advantages of owning the benefit accordingly, the value will be more readily apparent to those employees. Examples of generationally appropriate features could include guaranteed issue with no eligibility restrictions for pre-existing conditions, which might be more important for an older workforce. Similarly, the portability of the benefits may be more appealing to younger workers who expect to change jobs more frequently. 8 FINANCIAL SECURITY HEALTH CARE Underemployed Highest utilization of bankcards 61% are concerned about living expenses 69% concerned about access to affordable health care Likely to opt for low-cost, high deductible medical plans Raising families Highest debt load 65% are concerned about living expenses Likely to be responsible for children’s health care 52% are interested in having more health plans to choose from Focused on rebuilding nest egg post-recession 50% are concerned about living expenses Regular users of health care due to frequency of chronic conditions 52% are interested in having more health plans to choose from

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 9 Life Insurance Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: 57% of employees would like the option to purchase more life coverage at work

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 10 Disability Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: A good rule of thumb is for employees to buy enough disability coverage to protect 60-80% of after-tax income to cover essential monthly expenses such as shelter, food, transportation, education and health care.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 11 Dental Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: 164 million work hours are lost each year to dental disease or dental visits. People with dental insurance are more likely to seek regular treatment.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 12 Vision Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: Vision is a widely used benefit that can help reduce health care costs. An eye exam is the first line of defense for several chronic diseases.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 13 Supplemental Health Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: Critical illness insurance can be confused with health insurance, so additional education is helpful.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 14 Supplemental Health Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: Accident insurance sales in the workplace were up 14% across the industry in 2011, showing the growing popularity of this benefit. Accident claims for ER visits increase nearly 20% in summer.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 15 Auto and Home Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: Auto and Home protection is a benefit that almost everyone can use, and purchasing through the workplace provides convenient payroll deduction -- as well as competitive rates.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 16 Legal Services Formula Framework for a Multi-Generational Workforce: EXTRA INSIGHT: A group legal plan can provide on-tap legal support that can help limit the number of missed days and reduce employee stress.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] 17 Employee Loyalty The Value of Voluntary Benefits: In the end, designing the optimal voluntary benefit strategy is not only good for your employees -- it also has advantages for the business. It contributes to a robust and competitive benefits program to attract and retain talent without adding to benefit costs. Additionally, it can generate goodwill towards the company, which can translate into increased employee loyalty and productivity.

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] Questions? Learn more at: BenefitTrends.MetLife.com 18

All data from the 12 th Annual MetLife U.S. Employee Benefit Trends Study unless otherwise noted Metropolitan Life Insurance Company, NY, NY L [exp1115][All States] About the Study About the survey MetLife’s 12th Annual U.S. Employee Benefit Trends Study was conducted during October and November of 2013 and consisted of three distinct studies fielded by GfK Custom Research North America. The employer survey comprised 1,510 interviews with benefits decision-makers at companies with staff sizes of at least two employees. The employee survey comprised 1,203 interviews with full-time employees age 21 and over, at companies with a minimum of two employees. The broker survey comprised 524 interviews with brokers and consultants who sell group employee benefits to companies of all sizes. About GfK GfK is one of the world’s largest research companies, with more than 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. To find out more, visit 19