Transcript Worksite Critical Illness - National Insurance Agency

National Insurance Agency
Critical Illness
Ken Smith
Director of Critical Illness & Disability
800/276-7619 ext 4409
[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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Opportunity
We believe Critical Illness is the best
opportunity our generation will have in
the insurance business
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Opportunity
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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:
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England
Australia
Japan
Canada
US
1987
1990
1993
1994
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 ILLNESS
ASG STRATEGY
 Quality Product
 Training – 2 hr. CE
 Sales Tools and Sales Support
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Claims Experience
UK Claims Paid
Age
Under 40
41-50
51-60
Over 61
Male
33%
35%
23%
9%
Female
45%
35%
14%
6%
Average Age of Claims Paid: 43
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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
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Leading Causes of Death in 1900
 Pneumonia
 Tuberculosis
 Enteritis
12 %
11 %
8%
Source: The Wall Street Journal, 08/27/01
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People are living longer
Average Life Expectancy
1900 - 47.3
2001 - 77.2
Source: National Center for Health Statistics 2002
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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...
80%
70%
60%
50%
Survival
40%
Rates
30%
20%
10%
0%
1950
2001
Cancer
Stroke
Heart
Attack
2000 Heart and Stroke Statistical Update, American Heart Association
2000 Cancer Facts & Figures, American Cancer Society
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Critical Illness Insurance
Surviving has a price...
35%
Direct Cost
Indirect Cost
65%
Source: 2002 Cancer Facts & Figures, American Cancer Society
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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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Survival Has a Price
Fifty percent Of The Bankruptcies In The
United States Are Due To A Serious Medical
Condition
Harvard Study 2005
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Simplified Critical Illness
Benefit Amounts
$5,000 – $50,000
Issue Ages
18 - 59
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Simplified Critical Illness
Covered Conditions and Definitions
100% Benefits
Invasive 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
As defined by the policy. May vary by state. Exclusions & limitations apply.
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Simplified Critical Illness
Pays 25% of Maximum Benefit
 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.
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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
Return of Premium Rider
 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.
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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 History
Have 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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Underwriting - Simplified
 MIB
 Telephone Inspection
 Telephone Inspection every twenty-fifth
App
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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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Health Insurance
Are You Selling A Stool With
Leg?
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One
Health Insurance
Are You Selling A Stool With
Leg?
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One
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
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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
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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
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