for broker use only national insurance agency critical illness ken smith director of critical...
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For Broker Use Only
National Insurance Agency Critical Illness
Ken SmithDirector of Critical Illness & Disability
800/276-7619 ext [email protected]
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Attitude
The Shoe Salesman
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What is Critical Illness Insurance?
It Pays a Lump Sum Benefit on the
Diagnosis of a Covered Condition
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Purpose
Critical Illness Insurance was created to Remove Financial Stress so that the Person can Focus on Recovery
It’s About Survival
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OpportunityWe believe Critical Illness is the best opportunity our generation will have in the insurance business
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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
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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• US 1999
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Successful In Every Country
Takes 5-7 years before sales start to develop
Sales Ideas are transferable 20 years of Sales Ideas
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CRITICAL ILLNESSASG STRATEGY
Quality Product Training – 2 hr. CE Sales Tools and Sales Support
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Claims ExperienceUK 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
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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
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Leading Causes of Death in 1900
Pneumonia 12 % Tuberculosis 11 % Enteritis 8 %
Source: The Wall Street Journal, 08/27/01
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Average Life Expectancy
1900 - 47.3
2001 - 77.2
Source: National Center for Health Statistics 2002
People are living longer
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Lifestyles – Today We Diet Smoke (Some of Us) Work more Sleep less Rush
The Result: More Stress
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Church Bulletin
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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
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Surviving has a price...
Source: 2002 Cancer Facts & Figures, American Cancer Society
35%
65%
Direct Cost
Indirect Cost
Critical Illness Insurance
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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
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Fifty percent Of The Bankruptcies In The United States Are Due To A Serious Medical Condition
Survival Has a Price
Harvard Study 2005
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Simplified Critical Illness
Benefit Amounts$5,000 – $50,000
Issue Ages
18 - 59
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100% Benefits
Invasive 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
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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
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Simplified Critical Illness Return of Premium Death Benefit
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)
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Simplified Critical Illness Optional Benefits
In the event you survive and do not have a covered condition, you can receive 100 percent of the premiums you’ve paid at age 75
The Return of Premium rider provides increasing percentages beginning in the fifth year.
Return of Premium RiderReturn of Premium Rider
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Simplified Critical Illness 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
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Underwriting – Simplified
Must Answer Questions “No” Must Be Within Build Guidelines
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Underwriting - Simplified
Build Guidelines
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Underwriting - Simplified
Tobacco Question-• Has the proposed insured(s) used any
tobacco or nicotine during the past 12 months?
• Tobacco Rates
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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?
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MIB Telephone Inspection Telephone Inspection every twenty-fifth
App
Underwriting - Simplified
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Underwriting
Simplified Issue – Assurity Advantage Fully Underwritten – Don’t Promise a
Policy Until You Have One in Hand
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Markets
Major Medical Deductible Co – Pays Other Expenses Not Covered
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50 percent of bankruptcies are due to a serious illness
Harvard Study
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Are You Selling A Stool With One Leg?
He
alth
Insu
ran
ce
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Are You Selling A Stool With One Leg?
Ass
ocia
tion
Critical Illness
He
alth
Insu
ran
ce
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If you could Increase Your Income by 40 Percent without talking to one
additional prospect…
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Ask your prospects “If you have a major claim on your health insurance, what would be the reason?”
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Markets
Mortgage Market Only 3% of Mortgage foreclosures are due
to death 48% of mortgage foreclosures are due to a
Critical Illness
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Markets
Supplement to Disability Income Self Employed Supplement to Group DI Occupations Not Eligible for DI Teachers Government Employees Police and Fire
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What would you do if your employer asked you to take a 40 percent pay cut?
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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?
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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?
OR
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?
Or Six Months of Income
$
$
$
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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
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Presenting Critical Illness
Organized Presentation Who do you know? History of Critical Illness & Dr Barnard Story Video
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If you knew you would be diagnosed with cancer in the next 6 months, would you buy this?
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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
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Do You Want to Know a Secret to Selling Critical Illness?
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Good Meeting