UnumProvident Introduces PS Protector Short Term Disability Income Protection Insurance

Business Wire, May 24, 2001

Business Editors & Insurance Writers

CHATTANOOGA, Tenn. & PORTLAND, Maine--(BUSINESS WIRE)--May 24, 2001

UnumProvident (NYSE: UNM) is adding a new product to its Voluntary Workplace Benefits portfolio that helps individuals protect one of their most valuable assets: their income.

The new product, PS Protector, features affordable, flexible insurance coverage that pays monthly benefits for short-term disabilities resulting from a covered accident or covered sickness. Disability benefits may be paid to the insured for up to two years. This individual policy is available through convenient payroll deduction at the worksite for employees only.

"From the outset, PS Protector was developed with the middle income American in mind," said Neiciee Durrence, vice president, Voluntary Workplace Benefits Product Development. "In today's world, medical fees can often become out-of-pocket expenses for employees who are out of work due to a disability. PS Protector can help protect employees' income by providing monthly benefits should a short term illness or accident occur."

"Individual disability income protection products are typically targeted to executives and those with higher salary levels," said Durrence. "Middle income earners, however, are largely ignored when it comes to short term disability income protection. This group of individuals represents a significant percentage of the United States population, therefore leaving a huge gap in the income protection marketplace. Additionally, since most middle-income earners tend to live on a tight budget, they are at significant financial risk should they suffer a disability. PS Protector fills this need with affordable income protection insurance for short term disabilities."

PS Protector offers monthly benefits from $400 to $5,000 in $100 increments (based on plan type and subject to salary requirements), with salary coverage of up to 60%. Three plan types are available at the account level, including the Select Plan, Non-Occupational Plan and 24-Hour Plan. All three provide coverage for sicknesses, while the Select and 24-Hour Plans offer various on/off-job accident options. Other features include coverage that becomes effective the day the application is signed, a Waiver of Premium provision that is automatically included in the policy at no additional premium, and coverage that is fully portable.

PS Protector is the third new addition to the Voluntary Workplace Benefits (VWB) product line in the last 10 months, following PS Level Term(SM) and PS Critical Care(SM). Overall, UnumProvident's VWB portfolio features life, disability income, critical illness and other supplemental health products.

About UnumProvident Corporation

The subsidiaries of UnumProvident Corporation (NYSE: UNM) offer a comprehensive, integrated portfolio of products and services backed by industry-leading return-to-work resources and disability expertise. UnumProvident is the leader in income protection(1), providing insurance and services to individuals, both directly and through their employers. UnumProvident has more than 100 years of experience in creating innovative solutions that protect the rewards of work: paychecks, assets and lifestyles. UnumProvident has operations in the United States, Canada, the U.K., Japan, and elsewhere around the world. For more information, visit our website at www.unumprovident.com.

Underwritten by the following subsidiary of UnumProvident Corporation:

Provident Life and Accident Insurance Company 1 Fountain Square Chattanooga, TN 37402

(1) UnumProvident represents multiple insuring subsidiaries of UnumProvident Corporation, and includes the No. 1 group and individual income protection carriers in the United States and Canada according to Employee Benefit Plan Review, May 2000 and LIMRA, June 2000.