Attitude. Expectations. What is Critical Illness Insurance? The Shoe Salesman

Transcription

1 Attitude The Shoe Salesman Expectations What is Critical Illness Insurance? It is insurance that pays a lump-sum benefit at the diagnosis of a covered condition. 1

2 Purpose Critical Illness Insurance was created to remove financial stress so the insured person can focus on recovery. It s About Survival! Opportunity Critical Illness Insurance may be the best opportunity our generation will have in the insurance business. Opportunity Meets a need that may not be met by any other product Makes a difference in people s lives Very few own it most everyone is a prospect Sets you apart 2

3 History of Critical Illness Developed by Dr. Marius Barnard Originated in South Africa in 1983 Introduced in: England 1987 Australia 1990 Japan 1993 Canada 1994 U.S Successful In Every Country Takes 5-7 years before sales start to develop Sales ideas are transferable 20 years of sales ideas exist Who Do You Know? Ask your clients: Who do you know? Who do you know who s had a heart attack, cancer or stroke? Who planned to be on that list? Who on your list could have used $25,000, $50,000 or $100,000? How would they have used that money? 3

4 Medical advances have changed our lives and are changing our world Due to medical advancements: People are living longer More critical illnesses are being diagnosed People are surviving critical illnesses Survival has a price People Are Surviving Critical Illness Leading Causes of Death in 1900 Pneumonia 12 % Tuberculosis 11 % Enteritis 8 % Source: Leading Causes of Death, (2011) 4

5 People Are Living Longer Average Life Expectancy Source: 2010 U.S. Department of Health and Human Services Report Lifestyles Today We Diet Smoke (some of us) Work more Sleep less Rush The Result: More Stress What are the odds? In the United States: Every 25 seconds, someone suffers a coronary event 1 Every 40 seconds, someone suffers a stroke 1 About 1.5 million new cancer cases are expected to be diagnosed in Heart Disease & Stroke Statistics Update: American Heart Association Cancer Facts & Figures, American Cancer Society 5

6 Critical Illness Insurance Your chances of surviving are better than ever... Critical Illness Insurance Surviving has a price... 39% Direct Cost Indirect Cost 61% Source: 2010 Cancer Facts & Figures, American Cancer Society Survival Has a Price Indirect Expenses Loss of income for insured person and/or spouse Home modifications Experimental treatment Child care and domestic assistance Transportation and lodging for family members and caregivers during treatment 6

7 Bankruptcy Survival Has a Price 62% of all bankruptcies have a medical cause Most medical debtors were well-educated and middle class; 75% had health insurance The share of bankruptcies attributable to medical problems rose by 50% between 2001 and 2007 As recently as 1981, only 8% of families filing for bankruptcy did so in the aftermath of a serious medical problem Source The American Journal of Medicine, Medical Bankruptcy in the US, 2007: Results of a National Study (2009) Survival has a price Critical illness insurance meets a need that is rarely met by: Medical insurance Life insurance Disability income insurance Type of Critical Illness Insurance Rider on a life insurance policy Stand-alone health insurance policy 7

8 Simplified Critical Illness Covered Conditions and Definitions may Include: Life-Threatening Cancer Heart Attack Stroke Major Organ Transplant (when registered with United Network Organ Sharing/UNOS) Alzheimer s Disease Paralysis Renal (kidney) Failure Coma Major Burns Varies by policy and state. Exclusions & limitations apply. Simplified Critical Illness 25% of Maximum Benefit may be Paid: When the insured person: Is diagnosed with Cancer in situ Requires bypass surgery May pay 10% of the maximum benefit for Angioplasty Varies by policy and state. Exclusions & limitations apply. Return of Premium Death Benefit If the insured person dies with policy in force, he/she can receive: 100% of the premiums paid minus any claims; or The benefit amount (if from a covered condition) Varies by policy and state. Exclusions & limitations apply 8

9 Personal Needs Analysis: If you were diagnosed with cancer or suffered a heart attack or stroke, would you want all or part of your mortgage balance paid off? What amount would meet your needs? $ In the event of a critical illness, would you want your credit card or other lines of credit paid in full? What amount would meet your needs? In the event of a critical illness, would you want to make sure that all of your other financial obligations are met? What amount would meet $ your needs? Total $ $ Critical Illness Covered Conditions Cancer Heat Attack Stroke Major Organ Transplant (UNOS) Benign Brain Tumor Motor Neuron Disease Advanced Alzheimer's Heart Valve Replacement Varies by policy and state. Exclusions & limitations apply. Major Burns Coma Deafness Kidney Failure Blindness Aortic Surgery Loss of Speech Critical Illness Covered Conditions Cancer in situ 25% - $25,000 maximum Bypass Angioplasty 25% - $25,000 maximum Varies by policy and state. Exclusions & limitations apply. 9

10 Underwriting Family History Has any immediate family member suffered from cancer (specify type), Motor Neuron disease, Alzheimer s disease or other hereditary disease prior to age 65? How do you Sell Critical Illness Forget the Statistics Doctors and good medicine created the problem People survive today! 50 years ago they would have died A doctor created the solution You need to help the client establish the need for coverage (attach the dollars) ex.) Mortgage, replacement of income, etc. Personal debt Presenting Critical Illness Organized presentation Who do you know? Are you covered? Claims examples Video Consumer PowerPoint 10

11 Critical Illness Target Markets Supplement to medical insurance Mortgage protection Supplement to disability income insurance Business market Key person Loan protection Buy/sell funding Asset protection Critical Illness & Disability Income You need disability income (DI) insurance CI insurance does not replace DI coverage An insured person needs DI especially if he/she is disabled because of stress or a bad back. Critical Illness & Disability Income How They Fit Together A Car DI is the brakes CI is the air bag Critical Illness coverage is there when your client has the big crash with cancer 11

12 Critical Illness & Disability Income Self-employed Supplement to Group DI Occupations not eligible for DI Question What would you do if your employer asked you to take a 40% pay cut? What Would Your Banker Do? If he/she heard you had been diagnosed with cancer? Double your line of credit? Be totally unconcerned? Withdraw your credit completely? 12

13 Question If you were diagnosed with cancer today, what would happen to your business? You need to believe that without Critical Illness Insurance, all other aspects of a client s financial and personal plans could be jeopardized. Alphonso Franco Opportunity Critical Illness was only accepted by 3% of the market in England 10 years ago. Now it is promoted by 99% of the same market. Peter Dodd Pegasus Life London, England, November