Transcript Training – CriticalCare Plus

CriticalCare Plus®
Coverage to help fill a critical gap
Presented by…
Policies issued by American General Life Insurance Company, a member company of AIG
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Are your clients asking
questions about health care?
This conversation is top of mind.
Maybe it’s time to revisit some
ideas and solutions that can
help address these concerns
with your clients…
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
New Sales Opportunities
Critical Illness insurance can give clients piece of mind by
providing funds for what’s best for their health and to help
preserve their wealth. It can also be used by small business
owners to protect the business continuity from one generation/
partner to another in the case of illness.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
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 – People are living longer!
– In 2050, the number of Americans age 65 and older is projected to be 88.5 million,
more than double its projected population of 40.2 million in 2010.1
– For a married couple age 65, there is a 50% chance that at least one spouse will live
to 94, and a 10% chance that one will live to 104.2
 Medicine saves people, but quality health care does not come cheap
Let’s look at some eye opening statistics!
1 The Next Four Decades, The Older Population in the United States: 2010 to 2050 U.S. Department of Commerce, Economics and Statistics Administration, U.S. Census
Bureau. Issued May 2010, P25-1138.
2. Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
4
Eye Opening Stats
 83.6 million Americans are living with cardiovascular diseases1
 75% of people who suffer a heart attack survive at least three years2
 About 6.8 million Americans over age 20 had a stroke1
 70% of people who suffer a stroke survive at least three years3
Heart Association, Heart Disease and Stroke Statistics – 2013 Update
Heart Association, Heart Disease and Stroke Statistics – 2011 Update
3American Heart Association, Heart Disease and Stroke Statistics – 2010 Update
1American
2American
5
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Eye Opening Stats
 Between 50% and 70% of stroke survivors regain functional
independence, but 15% to 30% are permanently disabled, and 20%
require institutional care at 3 months after onset1
 In 2013, 1.66 million Americans were expected to be diagnosed with
cancer2
 68% were expected to survive at least five years2
 Average out-of-pocket cost for cancer patients is $1,266 per month3
Heart Association, Heart Disease and Stroke Statistics – 2011 Update
Cancer Society, Cancer Facts & Figures, 2013 update
32011 ASCO Annual Meeting, Yousuf Zafar, MD, MHS, Assistant Professor of Medicine,
Duke Cancer Institute. https://meetinglibrary.asco.org/content/58992
1American
2American
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
6
What if They Don’t Die?
 They may have to direct monies that they had planned to use to save for
retirement or pay their life insurance premiums
 If they lapse their life insurance policy they may not be able to get it back!
 Help protect your clients with another insurance solution!
– Life insurance can protect your clients from an untimely death
– Critical Care Insurance can protect your clients from an untimely diagnosis
 Don’t leave your clients exposed!
7
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Your Client’s Should Be Aware
 If they become seriously ill they may have out
of pocket liabilities
 The medical networks that your clients can
utilize are getting smaller and smaller
 The likelihood of your client having to go to an
out of network facility is increasing everyday
– Out of network = potentially more money out of
their pocket
 How are they going to pay for these additional
expenses?
8
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Flexibility
 With a Critical Care Insurance Policy if the client gets diagnosed with a
qualifying illness they can use the policy proceeds to help with whatever they
want
 The money goes directly to the insured policy owner
– Use the money for medical expenses
– Pay other bills
– Still pay life insurance premiums
– Pay out of network costs
Basically any expense they have!
9
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Costs not Covered by Traditional Health Insurance
Direct Costs
Indirect Costs
Deductibles
Lost Income
Co-Pays
Lifestyle Changes
Policy Exclusions
(Such as experimental
treatment)
Increased Financial
Responsibility
Out of Network Medical
Costs
Transportation and
Lodging for Non-Local
Treatment
10
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Who are the prospects?
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Target Markets
 Individuals in blue collar occupations
 High “wage earning” professionals
 Individuals with certain medical conditions
 Knee problems
 Situational depression
 Clients with life insurance coverage
 Single working parents
12
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Target Markets
Individuals not eligible for disability income
insurance
 Individuals in high risk occupations
 Stay at home parent’s
 Individuals with back problems
 Individuals with situational depression or
other disqualifying health issues
 Small business owners without an
established level of income
13
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
CriticalCare Plus
Strengthen clients’
financial resources and
create new income
streams for your business
14
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Key Benefits and Features
With the option to secure a lump-sum critical illness
coverage up to $500,000, benefits include:
 Immediate payment to the insured upon diagnosis of a
qualifying illness
 Tax-free payment to policyowner1
 Freedom to use the policy payout as needed To replace lost income, cover deductibles, co-pays or out-ofnetwork expenses
 Pays in addition to other insurance
 Loss of Independent Living Benefit included
1Based on current federal income tax laws.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
15
Make Decisions Based on Health not Wealth
CriticalCare Plus
Benefits Provide the Freedom to help:
 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
16
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Specifications
Issue Limits
 $10,000 minimum
 $500,000 maximum
 Issued in $1,000 increments
 Spouse coverage not to exceed primary insured’s coverage;
not to exceed 50% for non-working spouse
 Insured child limit of $50,000 (not to exceed primary insured’s
coverage)
17
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Specifications
Rates & Riders
 Male or Female
 Benefit Extension Rider (optional)
 Age 18-64 for all non-tobacco
 Medical Personnel HIV Benefit
plans except the 10-year term plan
 Age 18-59 for the 10-year term
plan and all tobacco plans
 Nicotine or Non-nicotine
 Three rate bands
Rider (optional; medical personnel
only)
 Accidental Death and
Dismemberment (optional)
 UNOS Listing Advance Benefit
– $10,000 to $50,000
for Major Organ Transplant
– $50,001 to $100,000
(no additional charge)
– $100,001 to $500,000
Issue age tobacco and non-tobacco in Pennsylvania is 18-55.
Medical Personnel HIV Rider is not available in California, Georgia, Pennsylvania or
South Dakota
The Benefit Extension Rider is only available on plans with cancer coverage included.
BER is not available in AR, CT, GA, ID, TX, UT, VA, and WA
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
18
Qualifying Events1
Paralysis
Cancer
Major Organ Transplant
(100% for Quadriplegia or
50% for Paraplegia or
Hemiplegia)
Kidney (Renal) Failure
Loss of Sight, Speech or
Hearing
Cancer In Situ
(25% up to $25,000)
Heart Attack
Loss of Independent
Living
Up to $50 per Year
Health Screening Benefit
Coronary Artery Bypass
Severe Burns
(25%, up to a maximum of
$50,000, one-time benefit)
Stroke
Coma
1All
benefits payable are subject to the terms and conditions of the policy, including benefit durations,
limitations and exclusions. Benefits, coverage and coverage options, riders, issue ages, limitations and
exclusions vary by state. Please consult the policy and rider forms and outline of coverage for details.
19
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Loss of Independent Living
LOIL – 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
Transferring Continence
Toileting
Eating
20
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
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 for life
 Other key product features include:
 Preventative Care Benefit
 Return of Premium
 Pays named beneficiary 100% of all paid premiums, minus any benefits
paid, upon death of the insured.
Return of Premium is not available in Iowa, Pennsylvania, Texas and Virginia.
21
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Costs that can be Covered by CriticalCare Plus
Blood test for triglycerides
Mammography
Breast ultrasound
Pap test
Chest X-Ray
PSA
(blood test for prostate cancer)
Colonoscopy
Serum cholesterol to
determine HDL and LDL
Electrocardiogram
Serum protein
electrophoresis
(blood test for myeloma)
Fasting blood glucose
Stress test
Flexible sigmoidoscopy
Hemocult stool analysis
In addition pays up to $50 for health screening tests during each calendar year
22
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
The only critical illness with term options:
 In addition to the Lifetime Plan, CriticalCare Plus is also
available as:
– 10-Year Term
– 15-Year Term
– 20-Year Term
– 30-Year Term
 Why would I purchase a critical illness insurance for a
specified coverage period?
– 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
– Succession planning – business continuity
23
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Underwriting
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Underwriting
CriticalCare Plus is a fully underwritten product.
Face amount of $100,000 and under require non-medical
underwriting. Face amounts over
$100,000 require medical underwriting.
Face Amount
Ages 18-40
Ages 41-50
Ages 51-64
$100,001-249,999
PM, B/U
PM, B/U
PM, B/U, EKG
$250,000-500,000
PM, B/U
PM, B/U, PHI,
APS
PM, B/U, PHI,
APS, EKG
PM = Paramedical exam to include height and weight, blood pressure, and pulse
B/U = Full blood profile and urinalysis
EKG= Resting EKG
PHI = Person History Interview typically performed by a paramedical examiner
APS = Attending Physician Statement
25
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
How to Build the Policy…
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
How Much Coverage do they need?
Questions to think about…
 What is their disposable income?
 What is their budget?
 This product protects against a short term need vs a long
term need
 There is normally an expectation of recovery
 6-12 months on average
 Is the client single?
 Is the client a business owner?
27
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
To get started
Today, contact:
eMail: A&[email protected]
Web: www.americangeneral.com/illness
Call: 877-399-7747, prompt 1
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
These product specifications are not intended to be all inclusive of product information. State variations may apply. Please refer to the policy for
complete details.
Policies issued by:
Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 05130, Rider Form Numbers 05137, 05138,
05139. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American
International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Policies and riders not available in all states.
Comprehensive medical coverage may be required in order to apply for or maintain this policy.
Guarantees are backed by the claims-paying ability of the issuing insurance company
Important: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has
been approved for sale by the insurer in that state. If uncertain, contact your American General Life Insurance Company representative for
assistance.
AGLC107914
© 2014 American International Group, Inc. All rights reserved.
29
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries.. AIG
companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of
any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn:
http://www.linkedin.com/company/aig
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries
or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may
be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not
protected by such funds.