Transcript Slide 1
Critical Illness Insurance
discussion with the
ABC Co.
(template)
The Medical Profession has Created an
Insurance Dilemma
• Not designed by an actuary.
• Not designed by an insurance company.
• Dr. Marius Barnard.
“I was agonized because I could see my patients dying
financially after diagnosis and treatment of a critical illness.
I went to life insurance agencies and encouraged them to
develop a policy that does not pay on the diagnosis of death
or disability, but pays if people survive - from the diagnosis
of a critical illness.”
What is Critical Illness Insurance?
1. A lump sum cash benefit (monetary benefit).
2. A payout 30 days after the diagnosis and survival of
one of the insured critical illnesses.
3. Non-monetary benefits:
A second opinion
Search for Best Doctors
Identify and arrange access to top medical
experts
Emotional support and coping strategies
Help coping with everyday activities
C.I., A Living Benefit.
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Cancer (life threatening)
Heart Attack
Stroke
Coronary Artery Bypass
Surgery
Coma
Blindness
MS
Loss of Speech
Alzheimer’s
see specimen policy for
exact definitions
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Deafness
Paralysis
Parkinson’s
Major Organ Transplant
Severe Burns
Renal Failure
Motor Neuron Disease
Occupational HIV Infection
Benign Brain Tumor
Critical Illness Statistics
Cancer (Source: The Canadian Cancer Society)
– 1 in 3 Canadians will contract some form of life
threatening cancer.
– 125,000 new cancer cases are diagnosed
annually.
– Incidence has increased 29% since 1970.
– 67% of current cancer treatment costs are
unfunded.
Critical Illness Statistics
Heart Attack (Source: Heart and Stroke Foundation)
– 1 in 4 Canadians will contract heart disease.
– 75,000 Canadian suffer heart attacks each year.
– 1 in 2 heart attack victims are under the age of
65.
– 90-95% of heart attack victims survive the first
attack.
Critical Illness Statistics
Stroke (Source: Heart and
Stroke Foundation)
– 1 in 20 run the risk of having
a stroke before age 70.
– 50,000 Canadians suffer a
stroke each year.
– 1 in 3 stroke victims are under
the age of 65.
Critical Illness Statistics
That adds up to 250,000
Canadians, each year, suffering
from one of the “big three” (Heart
Attack, Stroke and Cancer)
Accounts for almost 1%, each
year, of the Canadian population...
Perspective
•CI helps refocus benefits back to providing for the most
catastrophic events.
•Provides the opportunity to create a more “caring parent”
environment and reduces the need to “pass the hat” around the
office to help an employee dealing with a critical illness.
•Average person* starting out in the workforce has a:
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2.1% chance of dying prior to age 65*
20.1% chance of having a critical illness diagnosis prior to age
65*
It may not be a question of “ if ”, but rather “ when ”.
Assuming average age of someone starting out in the workforce at age 25.
1989-91 Experience report by group size, Canadian Institute of Actuaries, Sept. 1999.
M&G; critical illnesses include: cancer, heart attack, stroke, kidney failure, multiple sclerosis, blindness and deafness.
Extraordinary Costs of a Critical Illness
1. Medical Costs
2. Non - Medical Costs
• Alternative treatment
• Leave of absence for
insured or spouse
• Experimental drugs
• Out of province
treatment
• Nursing care
• Home and/or vehicle
adaptation
• Childcare
• Workstyle changes
3. Reduce Financial Obligations
• Debt/mortgage repayment
Personal Impact
Psychological impact of dealing with a life
threatening diagnosis
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• Fear, Anger, Confusion, Sadness, Depression,
Loss of Control
Patient
Family
Co workers
Personal Impact
Lifestyle Adjustments - How to cope with the ongoing
daily challenges ?
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Independence
Home care/maintenance
Child Care/ Elder Care
What services are available to help ?
• Recovery Focus - how to create an environment
focused on recovery ?
Beyond the Statistics
Over the last three years, think about the people you know:
colleagues, friends, and family who have suffered from one of the
following illnesses...
Cancer, Heart Attack, Stroke, Coronary Artery Bypass Surgery, Coma,
Blindness, MS, Loss of Speech, Alzheimer’s, Deafness, Paralysis,
Parkinson’s, Major Organ Transplant, Severe Burns, Renal Failure, Motor
Neuron Disease, Occupational HIV Infection, Benign Brain Tumour.
1. Did they expect this would happen to them?
2. Would a $25,000 lump sum payment have made a difference in:
Giving them access to quick and cutting edge medical service?
Reducing their financial stress?
Enhancing their remaining time?
Should your benefits program...
• Effectively cover the most catastrophic events.
• Provide stable, predictable costs.
• Give a significant lump sum payout to employees.
• Provide access to world renowned medical services.
• Fill the growing gap due to increased morbidity.
• Address real employee needs.
• Cover real risks.
Critical Illness Solutions Available
Guarantee Standard Issue (subject to short enrollment
form)
Plan Options (examples):
1. $50,000 for all employees;
2. $25,000 for all employees;
3. Tiered plan : $50,000 for execs. & $25,000 for all
others.
Coverage to age 65 (to 75 for those currently 60 years +)
Portable
Guaranteed renewable
Policies will include a pre-existing conditions clause
Critical Illness Solutions Available (example)
Plan Options:
1. $50,000 for all employees;
2. $25,000 for all employees;
3. Tiered plan. $50,000 for execs. & $25,000 for all
others.
Bi-weekly Cost (average cost per employee*)
1. $18.40
2. $10.37
3. $10.64
*cost may change based on number of smokers,
assumes 20% smoke
The Steps to Enroll
1. Provide an up to date census for quotation
purposes.
2. Provide the LTD claims experience. (3 years)
3. Request an offer letter to outline the parameters of
the plan.
4. Sign offer letter.
5. Complete the enrollment of eligible employees.
6. Install the plan.
7. Employee meeting.
8. Establish a contact for future administration.