UnumProvident Strengthens Critical Illness and Short Term Disability Products

February 22, 2005

CHATTANOOGA, Tenn., Feb. 22 /PRNewswire-FirstCall/ -- In response to a rapidly growing voluntary benefits market, UnumProvident (NYSE: UNM) today announced enhancements to its critical illness and individual short term disability insurance products.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030929/CHM022LOGO-a )

The specified critical illness insurance now includes the option of base or enhanced coverage. Base coverage features a benefit payout for heart attack, stroke, permanent paralysis, kidney failure, organ transplant or coronary artery bypass surgery. Enhanced coverage includes all conditions listed under the base plan, plus an additional benefit if diagnosed with cancer. Enhancements also include increased benefit amounts for covered children, and, for eligible employee groups, the first $10,000 in coverage is guaranteed-issue (some restrictions apply).

A new five-year benefit period tops the list of enhancements to the individual short term disability insurance, which also includes a new optional rider that covers mental illness. The product also adopts an industry-based rate structure and follows a streamlined underwriting process, making the sale and set-up of such coverage easier for brokers.

The voluntary worksite market is one of the fastest-growing market segments, increasing by more than 10 percent each year, according to a 2003 report by LIMRA International. As employers battle rising medical coverage costs, voluntary benefits that are offered through the workplace can help companies enhance their existing benefits package at little or no cost to them.

"Voluntary benefits provide a tremendous opportunity for employers to balance the need for benefit cost containment with their need to attract and retain a high quality workforce," says Neiciee Durrence, vice president, voluntary workplace benefits. "These products enhance UnumProvident's array of supplemental employee benefits, and help our corporate clients offer a customized, competitive and affordable benefits package to their employees."

These two enhanced voluntary products will be available on March 1, 2005, although the products are still awaiting final approval in some states.

"Should sickness or injury strike an individual, their out-of pocket expenses -- not to mention lost time on the job -- can significantly impact their financial well-being," Ms. Durrence says. "By offering critical illness and/or short term disability insurance, employers can help protect employees and their families from the financial impact that can follow a covered illness or injury."

UnumProvident's full product portfolio of voluntary benefits includes interest-sensitive whole life, universal life, term life, individual short term disability, accident, specified critical illness and cancer insurance. The sale of these products occurs at the worksite and employees can pay premiums through the convenience of payroll deduction. A voluntary insurance policy is owned by the employee, which means the employee may choose to continue the coverage even if they leave the company through which it was purchased.

About UnumProvident

UnumProvident (UNM) is the largest provider of group and individual disability income protection insurance in the United States and United Kingdom. Through its subsidiaries, UnumProvident Corporation insures more than 25 million people and paid $5.9 billion in total benefits to customers in 2004. With primary offices in Chattanooga, Tenn., and Portland, Maine, the company employs more than 12,000 people worldwide. For more information, visit http://www.unumprovident.com .

Critical illness and short term disability insurance products are underwritten by Provident Life and Accident Insurance Company, 1 Fountain Square, Chattanooga, TN 37402. Policies or their provisions may vary or be unavailable in some states. Policies have exclusions and limitations which may affect any benefits payable.

SOURCE  UnumProvident Corporation
    -0-                             02/22/2005
    /CONTACT:  Mary Clarke Guenther, Manager, Media Relations, or
mguenther@unumprovident.com , or Halima Holloway,
hholloway@unumprovident.com , both of UnumProvident Corporation,
+1-423-294-6300, or Toll free, +1-866-750-8686/
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    /Web site:  http://www.unumprovident.com /
    (UNM)

CO:  UnumProvident Corporation
ST:  Tennessee
IN:  INS HEA
SU:

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