Monitoring Attitudes of the Public 2002 ACLI Webcast December 12, 2002 By Brian Perlman, Ph.D., CLU, ChFC, FLMI Mathew Greenwald & Associates

2 Methodology 1,060 Telephone Interviews 440 $75K+ with Oversample Conducted in June 2002

3 Issues Image of the industry Industry comparisons Insurance marketplace Life insurance product Risk classification and privacy Retirement and Annuities

4 Image of the Industry

5 Attitudes Toward Life Insurance Industry (MAP 2000)

6 Attitudes Toward the Life Insurance Industry ( )

7 Attributes Associated with Life Insurance Industry % Strongly or somewhat agree Financially strong Professional Meets commitments Trustworthy

8 Agree Companies Have High Ethical Code 57%

9 Agree Representatives are More Interested in Making Commissions Than Selling the Right Products

10 Industry Comparisons

11 Favorable Opinion of Financial Service Industries % Very or somewhat favorable Life insurance companies BanksMutual fund companies Stock brokerage firms Financial planning firms Financial services in general

12 Industry Best Described by Various Statements Offers products that help people save for retirement Best for variety of products Knowledgeable source for investment advice

13 Industry Best Described by Various Statements (continued) Protect against financial uncertainties Products guarantee retirement income Offers products for every stage of life

14 Mutual Fund Industry Best at Retirement Products by Income

15 Life Insurance Industry Best at Retirement Products by Income

16 Industry Best at Protecting Against Uncertainty -- General Population Vs. Affluent

17 Type of Financial Company Would Recommend to a Friend – General Population vs. Affluent

18 Reason Why Would Recommend to a Friend % Extremely important

19 Life Insurance Product

20 Adequacy of Household’s Life Insurance Coverage

21 Agreement With Life Insurance Statements

22 Agreement that Most People Should Have Some Form of Life Insurance

23 Agreement that Life Insurance Is a Necessity

24 Financial Professional Most Often Used For Planning Finances

25 Retirement

26 Satisfied With Household’s Financial Situation

27 Evaluation of Retirement Income

28 Evaluation of Retirement Income

29 Importance of Future Financial Concerns 91% 90% 68% 52% Being able to afford any medical expenses that come up Having a guaranteed income throughout your retirement Being able to afford long-term nursing and home care should you need it Being able to provide an inheritance for your family when you die

30 Difficult to Predict How Much Money Is Needed for Retirement 79% 65% 78% 66% General sample Affluent sample Strongly agree with statement Somewhat agree with statement

31 Tax Deductible Savings From Work Are an Important Source of Retirement Savings 80% 87% Strongly agree with statement Somewhat agree with statement

32 Estate and Inheritance Planning is Important to Me 75% 80% Strongly agree with statement Somewhat agree with statement

33 Would like Employer to Make Available More Information on Retirement Planning 69% 60% Strongly agree with statement Somewhat agree with statement

34 Risk Classification and Privacy

35 Factors that Should be Considered in Determining Policy Cost

36 Recall and Understanding of Privacy Statements Remember receiving a statement from Financial Institution regarding privacy rights Read one of these statements Understood the Company’s Privacy Practices After Reading

37 Aware That Some Privacy Statements Allow Customers to Prevent Companies From Sharing Their Financial Information

38 Annuities

39 Importance of Annuity Features 92% 91% 89% 89% 87% 80% 75% You/Your spouse can get a guaranteed income for life It is a safe purchase You want a long- term savings plan The earnings are not taxed until the funds are used Provides money if you/ spouse need long-term care Can choose to put money in fixed accounts and equities Don’t have to begin with- drawing money at 70 1/2

40 Products Best at Various Goals Guaranteeing a retirement income you can never outlive Providing flexibility in managing your investment options Having an attractive investment return Offering tax benefits Offering safety of principal