CNA Life Introduces Recent Graduates to Insurance That Grows With Them.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 1, 2001

CNA Life, the life insurance business unit of the CNA insurance companies, is introducing recent college graduates to a new twist on an old concept in term life insurance - coverage that grows with you.

Through its 400 series term product, Valley Forge Life Insurance Company, one of the CNA insurance companies, offers a no-cost rider that lets the policyowner increase his or her coverage at certain life events. These events include marriage, the purchase of a new home, or the birth or adoption of a child. This rider, the guaranteed insurability option or GIO, which is available in most states, enables the policyowner to increase coverage up to two times the original face amount to a maximum of $500,000.

"Recent graduates are usually just entering the workforce and are not yet ready to commit themselves to a long-term contract, particularly when they're unsure of their future needs. That's why these policies work so well for younger people," says Bob Miller, Vice President, Life Marketing. "They can purchase the policy now, at lower rates based on their age, and increase coverage when and if the need arises. The policy can grow with them."

For many, individual term policies may cost less than purchasing through an employer plan. While many employers today offer a base amount of life coverage for employees, typically the company-paid portion tops out at around $50,000. With individual policies, coverage is portable and the policyowner can determine the length and amount of coverage.

While younger consumers may not need large coverage amounts, they are typically at their healthiest and therefore can lock in coverage that might not be as easily available later in life. Once they purchase the policy with the GIO option, their insurability is guaranteed, regardless of their future health. With the guaranteed insurability option, they have the comfort of knowing that when those needs do arise, their coverage will be there and can grow with them.

CNA is one of the leading insurance groups in the United States based on revenues of more than $15 billion for the year ended December 31, 2000. Headquartered in Chicago, CNA serves individuals and businesses with a broad range of insurance products and insurance-related services. CNA term life insurance is underwritten by Valley Forge Life Insurance Company and Continental Assurance Company. Both are CNA companies. CNA is a registered service mark, trade name and domain name of CNA Financial Corporation (NYSE:CNA).