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AIG CriticalCare Plus
Immediate Payout to Fill a Critical Gap
22FOR TRAINING PURPOSES ONLY
Life Insurance is a key component to any financial plan
But What If you Don’t Die?
Tremendous breakthroughs in medical technology have vastly improved survival rates
Life expectancy has increased by over 30 years in the less than 100 years
Medicine saves people, but quality health care does not come cheap
33FOR TRAINING PURPOSES ONLY
Do you know anyone who has survived a stroke, heart
attack or cancer?
Would a lump sum payment of $50,000 or $100,000 at time of diagnosis have made a
positive difference in their life?
44FOR TRAINING PURPOSES ONLY
This year about 1.2 million Americans will suffer a heart attack, and nearly 60% will survive
Over 1.3 million Americans will be diagnosed with cancer this year, and 64% of them are expected to survive at least five years
Each year about 700,000 Americans experience strokes and 70% survive.
There are 22+ million Americans alive today who have survived a heart attack, stroke, or cancer
Survival is a Reality
55FOR TRAINING PURPOSES ONLY
The costs surrounding a cancer diagnosis average $146,000 per patient
According to the American Cancer Society, over 65% of cancer related expenses are indirect, not covered by Traditional Insurance
Over 50% of bankruptcies are medically related
The Cost of Surviving
66FOR TRAINING PURPOSES ONLY
Your Health Insurance PortfolioMajor Medical Insurance
Reimburses for your covered medical expenses
Payments made directly to the provider
Out of pocket costs include: deductibles, co-pays, co-insurance, out-of-network costs, experimental treatments
Premiums usually increase annually with medical inflation
77FOR TRAINING PURPOSES ONLY
Harvard Study on U.S. Individual Bankruptcies
Over 50% of all bankruptcies are caused due to a medical/health related crisis
Over 75% of individuals bankrupted by a medical/health related crisis had medical insurance at the onset of the bankrupting illness
88FOR TRAINING PURPOSES ONLY
Your Health Insurance PortfolioDisability Insurance
Majority of working Americans don’t have protection in the event of a disability
Plans do not replace all lost earnings, only a percentage
Standard elimination period is 90 days before eligible for benefits
Many occupations are not eligible for coverage or have extra high premiums due to job risk
99FOR TRAINING PURPOSES ONLY
Your Health Insurance PortfolioLong Term Care Insurance
Reimbursement of home healthcare, assisted living facility or nursing home expenses
Traditionally a product for the senior market
Must satisfy a waiting period (usually 90 days) before eligible for benefits
Payments made directly to the provider
Benefit amounts selected may not cover the total cost of services. Inflation protection can more than double the cost of coverage.
1010FOR TRAINING PURPOSES ONLY
Costs not covered by Traditional Health Insurance
Direct Costs
Deductibles
Co-Pays
Policy Exclusions(such as experimental treatment)
Out-of-network medical costs
Indirect Costs
Lost Income
Lifestyle changes
Increased financial responsibility
Transportation and lodging for non-local treatment
Why Do I Need AIG CriticalCare Plus?
1212FOR TRAINING PURPOSES ONLY
CriticalCare Plus Pays lump sum benefit upon diagnosis of a covered
critical illness
Benefit not based on cost incurred or time lost from work
Benefit paid directly to the insured with no restrictions on its use
Pays in addition to other insurance
With few exceptions all occupations are eligible for coverage
1313FOR TRAINING PURPOSES ONLY
CriticalCare Plus“Make decisions based on health not wealth”
Benefits Provide the Freedom to: Choose the best hospitals and physicians Elect treatments or services not covered by
traditional health insurance Pay mortgage, debts, or outstanding bills Seek experimental drugs or therapies Modify a home for special needs Stay home from work until you are ready to
return Replace income, yours or your spouse’s
AIG CriticalCare Plus
An innovative product from
AIG American General
1515FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Pays a lump sum benefit directly to you upon diagnosis of one of 12 covered conditions
Minimum Face Amount: $10,000
Maximum Face Amount: $500,000
1616FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus12 Covered Conditions: Invasive Cancer Heart Attack Stroke Kidney (Renal) Failure Coma In Situ Cancer (25% up to a $25,000 max) Severe Burns Loss of Sight, Speech or Hearing Paralysis (50% for paraplegia and hemiplegia) Major Organ Transplant (25% payable when placed on
UNOS listing) Coronary Artery Bypass (25% up to a $50,000 max) Loss of Independent Living
1717FOR TRAINING PURPOSES ONLY
AIG CriticalCare PlusLOIL - Unique qualifying event to CriticalCare Plus
Loss of Independent Living is defined as permanent loss of two or more of the six activities of daily living, with an elimination period of 180 days:
Bathing
Dressing
Toileting
Transferring
Continence
Eating
1818FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Full benefit is payable through age 70
No reduction at age 65
After age 70; Loss of Independent Living remains the sole covered condition with full benefits payable for life
1919FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Other key product features include:
Preventive Care Benefit
Return of Premium
Best Doctors Endorsement
2020FOR TRAINING PURPOSES ONLY
Preventive Care BenefitPays up to $50 for health screening tests during each
calendar year Blood test for
triglycerides Breast ultrasound Chest X-Ray Colonoscopy Electrocardiogram Fasting blood glucose Flexible
sigmoidoscopy Hemocult stool
analysis
Mammography Pap test PSA (blood test for
prostate cancer) Serum cholesterol to
determine HDL and LDL Serum protein
electrophoresis (blood test for myeloma
Stress test
2121FOR TRAINING PURPOSES ONLY
Return of Premium
Return 100% of all premiums paid upon death of the insured, less any benefits paid to the named beneficiary
2222FOR TRAINING PURPOSES ONLY
Best Doctors Endorsement
Access to a national network of over 50,000 doctors, who are personally nominated by their peers and recognized as a specialist in their respective field
Access through an interactive website
Access through doctor to doctor consultation
2323FOR TRAINING PURPOSES ONLY
Optional Benefits
Benefit Extension Rider Medical Personnel HIV Benefit Accidental Death and Dismemberment
2424FOR TRAINING PURPOSES ONLY
Benefit Extension Rider
Allows the policy to continue after the maximum policy benefit has been paid
Additional protection for two types of subsequent diagnosis: continuance and recurrence
2525FOR TRAINING PURPOSES ONLY
Benefit Extension Rider (cont’d)
Continuance
Pays up to 3X the original benefit amount not to exceed $500,000
Will pay the full benefit for a diagnosis different from what was previously paid
Subsequent diagnosis must occur at least 180 days after the previous diagnosis
2626FOR TRAINING PURPOSES ONLY
Benefit Extension Rider (cont’d)
Recurrence Will pay 50% of the policy maximum benefit
for second diagnosis of the same illness Must be two years treatment-free following
the original dianosis
Note:
Treatment does not include maintenance medications and follow-up visits
2727FOR TRAINING PURPOSES ONLY
Medical Personnel HIV Benefit
Will pay the policy maximum benefit if the insured is diagnosed with HIV as a result of an accident, which occurred during the normal occupational duties
2828FOR TRAINING PURPOSES ONLY
Accidental Death and Dismemberment
Units of coverage are $25,000 each Six unit maximum $150,000 maximum
2929FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
In addition to the Lifetime Plan, CriticalCare Plus is also available as:
10 Year Term
15 Year Term
20 Year Term
30 Year Term
A more affordable choice only available through AIG American General
3030FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus – 10,15, 20, and 30 year term plans
When would I purchase term coverage? To provide coverage until the children
graduate college To provide coverage for the balance of the
mortgage To provide coverage for the period of an
outstanding loan or any other limited financial obligation
3131FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Issue Age Age 18-64 for all non-
smoker plans except the 10 year term plan
Age 18-59 for the 10 year term plan and all smoker plans
Rating Structure Sex Distinct Rates Tobacco or Non-tobacco Accept or Reject – no
premium rating 5 year age bands 3 Premium Bands:
• $10,000 - $50,000• $50,001 - $100,000• $100,001 - $500,000
3232FOR TRAINING PURPOSES ONLY
AIG CriticalCare PlusBenefit Amounts Minimum - $10,000 Maximum - $500,000 (not to exceed 5x earned income)
Spouse Coverage Up to 5x earned income not to exceed the benefit for
the primary insured If not working, benefit amount is limited to 50% of the
working spouse limit up to a maximum of $250,000
Child Coverage $50,000 maximum, not to exceed the primary insured's
benefit amount The premium covers all children for the same rate
3333FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Underwriting Face Amounts up to $100,000
• Non-medical underwriting• Fully completed application• MIB
3434FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Underwriting
Face Amounts $100,001 and greater
• Paramedical exam to include height/weight, blood pressure and pulse
• Full blood profile and urinalysis
• Ages 51-64, EKG
• $250,000 to $500,000 will require personal history interviews for applicants age 41-64 and APS in all cases
3535FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus
Underwriting cont’d The underwriting section of AIG CriticalCare
Plus producer guide will provide additional details on underwriting guidelines and practices for this product.
Who Are Prospects for AIG CriticalCare Plus?
3737FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?
Individuals in blue collar occupations:
Firefighters Police officers Welders Long haul truckers Janitors Waiters/Waitresses
Why? May be ineligible for
Disability Insurance If eligible for Disability
Insurance, premiums may be expensive
Can provide protection if loss of earnings is caused by a covered critical illness
3838FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?High Wage Earning
Professionals Physicians Attorneys Corporate Executives Business Owners
Why? Disability Insurance
replacement rates are less than 50% with a monthly maximum of $10,000 - $15,000
Disability benefits may be inadequate to cover monthly living expenses
Can provide additional benefits if loss of earnings is caused by a covered critical illness
3939FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?Small Business Owners
Why?
May be ineligible for Disability Insurance until the business is established
Need to replace business expenses in addition to personal income in the event of a disability
Lump sum payment can be used to keep the business operational during recovery from the critical illness
4040FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?
Individuals with certain medical conditions
Back problems Knee problems Situational depression
Why? May be ineligible for
Disability Insurance, but can qualify for Critical Illness Protection
May be the only protection available to provide benefits in the event of a loss of earnings caused by a covered critical illness
4141FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?
Stay-at-home parents
Why? Ineligible for Disability
Insurance Additional expenses in
unable to take care of the children due to critical illness
Working spouse may need to take time off from work to help with the children and care for the wife (Family Medical Leave Act)
4242FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who? Individuals with high
deductible major medical plans or limited medical plans such as scheduled plans or mini-med plans
Why?
Critical Illness insurance can cover the deductibles, co-insurance, and other out-of-pocket expenses in the health insurance plan
Critical Illness packaged with a high deductible may be more affordable than a plan with a low deductible
Will allow you to seek treatment not covered by your medical plan…experimental in/or out-of-network
4343FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who?
Clients with life insurance coverage
Why?
Client already understands the need for financial protection
Financially secure in the event of death, but what is your client survives a heart attack, stroke or cancer
4444FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus Prospects
Who?
Divorced Parents
Why? Financial Obligations
• Child support• Loans for college
Disability insurance may not be sufficient to cover these obligations
4545FOR TRAINING PURPOSES ONLY
AIG CriticalCare Plus - Prospects
Who? Single working parents
Why? Additional expenses
associated with caring for the children which would not be covered by disability insurance
Unlikely to have sufficient savings to buffer against increases in expenses
Lump sum payment will help alleviate stress they already face as a single parent
4646FOR TRAINING PURPOSES ONLY
Pension Plans Some major pension plans are being discontinued 401k, IRA, ESOP are becoming primary method of
retirement savings
• Defined contribution plans
• Dependent on consistent contributions
Skipping contributions, or worse yet, having to take early withdrawals tocover medical expenses can devastatethe best laid retirement plan
CriticalCare Plus Sales Opportunity #10CriticalCare Plus Sales Opportunity #10
Additional Opportunities