March 25, 2004

We are aware that MetLife has sent letters and renewal bills to Kemper retirees participating in the term life program announcing rate increases. The letter includes a statement that reads “under the terms of Kemper’s renewal contract, the term life rates have changed effective February 1, 2004.” This is apparently standardized language that MetLife uses in letters it mails to participants in association programs.

Kemper’s current situation has no bearing on the rate increases being announced by MetLife. These increases are based solely upon the program’s independent experience and performance. Kemper does not provide a subsidy under the MetLife term life program and therefore any rate increases are not connected to decisions by or directions from Kemper.

If you have questions or concerns about your MetLife term life program, call MetLife customer service at 1-800-638-5433.