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Attitude
The Shoe Salesman
Expectations
What is Critical Illness Insurance?
It Pays a Lump Sum Benefit on the Diagnosis of a Covered Condition
Purpose
Critical Illness Insurance was created to Remove Financial Stress so that the Person can Focus on Recovery
It’s About Survival
Opportunity
We believe Critical Illness is the best opportunity our generation will have in the insurance business
Opportunity
Meets A Need Not Met by any Other Product
Makes a Difference in People’s Lives No One Owns It - Everyone is a
Prospect Sets You Apart
History of Critical Illness
Developed by Dr Marcus Barnard Originated in South Africa in 1983 Introduced in:
England 1987 Australia 1990 Japan 1993 Canada 1994 US 1999
Successful In Every Country
Takes 5-7 years before sales start to develop
Sales Ideas are transferable 20 years of Sales Ideas
Claims Experience
UK Claims Paid
Age Male Female
Under 40 33% 45%
41-50 35% 35%
51-60 23% 14%
Over 61 9% 6%
Average Age of Claims Paid: 43
Who Do You Know?
Ask your clients:
“Who do you know?”
“Who do you know that’s had a heart attack, cancer or stroke?”
“Who planned to be on that list?”
“Who on your list could’ve used $25,000, $50,000 or $100,000?”
“How would they have used that money?”
Due to medical advancements: People are living longer
More critical illnesses are being diagnosed
People are surviving critical illnesses
Survival has a price
Medical Advances have changed our lives and are changing our world
Why Critical Illness Insurance Now?
Why there are more Critical Illnesses such as Cancer, Heart Attack and Strokes today?
Leading Causes of Death in 1900
Pneumonia 12 % Tuberculosis 11 % Enteritis 8 %
Source: The Wall Street Journal, 08/27/01
Average Life Expectancy
1900 - 47.3
2001 - 77.2
Source: National Center for Health Statistics 2002
People are living longer
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 29 seconds, someone suffers a
coronary event 1
Every 45 seconds, someone suffers a stroke 1
About 1.3 million new cancer cases are expected to be diagnosed in 2003 2
1 Heart Disease & Stroke Statistics - 2003 Update: American Heart Association2 2003 Cancer Facts & Figures, American Cancer Society
Critical Illness Insurance
Your chances of surviving are better than ever...
2000 Heart and Stroke Statistical Update, American Heart Association
2000 Cancer Facts & Figures, American Cancer Society
0%
10%
20%
30%
40%
50%
60%
70%
80%
Survival Rates
Cancer Stroke HeartAttack
1950
2001
Surviving has a price...
Source: 2002 Cancer Facts & Figures, American Cancer Society
35%
65%
Direct Cost
Indirect Cost
Critical Illness Insurance
Survival Has a Price
Indirect Expenses Loss of income for self and / or spouse Home modifications Experimental treatment Child care and domestic assistance Transportation and lodging for family members and caregivers during treatment
Survival has a price
Critical illness insurance meets a need not met by:
Medical Insurance Life Insurance Disability Income
Type of Critical Illness Insurance
Rider On a Life Policy Stand Alone Health Policy
Life-Threatening CancerHeart AttackStrokeMajor Organ Transplant (when registered with United Network Organ Sharing/UNOS)
Alzheimer’s DiseaseParalysisRenal (kidney) FailureComaMajor Burns
As defined by the policy. May vary by state. Exclusions & limitations apply.
Covered Conditions and Definitions
Simplified Critical Illness
Simplified Critical Illness
When you are diagnosed or require: Cancer in-situ Bypass Surgery
Pays 10% of the maximum benefit for Angioplasty
As defined by the policy. May vary by state. Exclusions & limitations apply.
Pays 25% of Maximum Benefit
Return of Premium
If you die while your policy is in force, you can receive:
100% of the premiums paid minus any claims or
The benefit amount (if from a covered condition)
Death Benefit
Optional Benefits
In the event you survive and do not have a covered condition, you can receive 100% of the premiums you’ve paid at age 75
The Return of Premium rider provides increasing percentages beginning in the 5th year.
Return of Premium Rider
Optional Benefits
Spouse Rider – can purchase any amount not to exceed primary insured
Children’s Rider – amounts of $5,000 or $10,000 Waiver of Premium – total disability, 6 month
elimination period – retroactive benefits Accidental Death Benefit – any amount up to the
maximum benefit amount
video
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 $
Underwriting – Simplified
Must Answer Questions “No” Must Be Within Build Guidelines
Underwriting - Simplified
Build Guidelines
Underwriting - Simplified
Tobacco Question - Has the proposed insured(s) used any
tobacco or nicotine during the past 12 months?
Underwriting - Simplified
Family HistoryHave any two or more of the Proposed Insured’s natural
parents, brothers or sisters, either living or deceased, been diagnosed with the same condition(s) from the following list:
Heart disease, stroke, diabetes, kidney disease or breast cancer prior to age 60?
Colorectal cancer or Alzheimer’s or Senile Dementia prior to age 75?
Any other same cancer in both relatives prior to age 55?
Underwriting - Simplified
MIB Telephone Inspection Telephone Inspection every 25th App
Critical Illness Covered Conditions Cancer Heat Attack Stroke Major Organ Transplant (UNOS) Benign Brain Tumor Motor Neuron Disease Advanced Alzheimer's Heart Valve Replacement
Major Burns Coma Deafness
Kidney Failure Blindness Aortic Surgery Loss of Speech
Cancer in situ – 25% - $25,000 maximum
Bypass Angioplasty – 25% - $25,000 maximum
Critical Illness Covered Conditions
UnderwritingCritical Illness
Similar to Preferred Life
Some Differences
Mortality vs. Incidence
UnderwritingCritical Illness
Your client is not eligible for CI if there is a prior history of: Cancer (some exceptions)* Diabetes (insulin dependent or uncontrolled) Heart Disease, including heart attack, angina, vascular surgery or
angioplasty Major Organ Transplant AIDS, HIV+ Alcohol Abuse, treated within past 2 years Drug Abuse Stroke or Transient Ischemic Attack (TIA) Kidney Failure or Disease (other than kidney stone) Cystic Fibrosis Hepatitis other than A Multiple Sclerosis Muscular Dystrophy Huntington’s Chorea Permanent Paralysis Systemic Lupus Erythematosus Alzheimer’s Disease Amyotrophic Lateral Sclerosis
UnderwritingCritical Illness
*applicants with certain cancers, including skin cancers other than melanoma or certain early state cancers, may still be eligible for coverage.
UnderwritingCritical Illness
Occupational Consideration
UnderwritingFinancial Guidelines
7 times earned income up to $250,000 6 times earned income up to $500,000 Nonworking spouse: 50% of working
spouse limit up to maximum of $250,000
UnderwritingCritical Illness
Build
UnderwritingFamily History
Based on Immediate Family Members –
Natural Parents, Brothers or Sisters
UnderwritingFamily 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 with options to attach
the dollars ex. Mortgage, replacement of income, etc. Personal Debt
Prospecting
Your existing Clients are the Best Prospects
Who Are Some Other Prospects?
Return of Premium Approach
When was the last time your car insurance gave you money back when you didn’t have a claim?
When was the last time your homeowners insurance gave you money back if you didn’t have a claim?
I have a special type of insurance that gives you all your money back. Would that interest you?
Presenting Critical Illness
Organized Presentation Who do you know? Are you covered? Claims examples Video Consumer PowerPoint
Make It Affordable
If you knew you were going to be diagnosed with cancer in the next 6 months, would you buy this?
How do you know you won’t?
Critical IllnessTarget Markets
Supplement to medical insurance Mortgage Protection Supplement to Disability Income Business Market
Key Person Loan Protection Buy / Sell Funding
Asset Protection
Mortgage Market
Do you have mortgage insurance? Do you have the old kind of mortgage insurance or
the new kind of mortgage insurance? What do you mean? The old kind of mortgage insurance pays off your
mortgage only if you die. The new kind pays off your mortgage on death, but in addition, will pay your mortgage if you are diagnosed with cancer, have a heart attack or stroke.
Mortgage Market
Only 3% of mortgage foreclosures are due to death. 48% are due to a Critical Illness
Would you rather have a heart attack and lose your house or have a heart attack and lose your mortgage?
You and your family will be able to stay in your house even if the the worst happens.
If you had a goose that laid golden eggs, would you insure the goose or the eggs?
Critical Illness & Disability Income
You need Disability Income Critical Illness does not replace DI You need DI especially if you are
disabled because of stress or a bad back.
Critical Illness & Disability Income
A Car DI is the brakes CI is the air bag
Critical Illness is there when you have the big crash with Cancer
How They Fit Together
Critical Illness & Disability Income
Self Employed Supplement to Group DI Occupations Not Eligible for DI
What Would You Do If Your Employer Asked You To Take a 40% Pay Cut?
After going through Chemo therapy treatments for 5 or 6 months, will you want to go back to work as soon as you can perform the material and substantial duties of your occupation?
Business Owners
If you were diagnosed with Cancer, or had a Heart Attack, would there be more or less stress in your life as a Business Owner?
What is your bank’s policy for people diagnosed with Cancer who have demand loans?
What Would Your Banker Do?
If He/She Heard That You Were Diagnosed with Cancer?
Double Your Line of Credit Be Totally Unconcerned Withdraw Your Credit Completely
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
Keys To Selling CI
Organized Presentation Passion Start with your Existing Clients Make it Affordable Educate your Client on the need Developed by a Doctor Celebrity Stories Study
Do you want to Know the Secret to selling Critical Illness?
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 1999
Good Meeting?
