CRITICAL ILLNESS INSURANCE Leading Edge Disability Center by alicejenny

VIEWS: 8 PAGES: 57

									CRITICAL ILLNESS
  INSURANCE
Field Information Session
         Marketed through
         LEADING EDGE INSURANCE
         (888) 677-6575
         Email: office@LeadingEdgeInsurance.com
         www.LeadingEdgeInsurance.com

         For Agent Use Only                       1
            CRITICAL ILLNESS
              INSURANCE
What is it?
Insurance that pays a lump sum benefit to the
insured on the first-ever diagnosis of a
specified critical illness. The policy terminates
with the benefit payment.
It is NOT…
 expense reimbursement (like health insurance)
 based on inability to work (like disability income)
 based on impending death
                      For Agent Use Only                2
                    THE TRUTH IS...
 8 million people are currently CANCER
  survivors.

 88% of HEART ATTACK patients under 65 are
  able to return to their usual work.

 71% of people will survive one year or more after
their first STROKE.

1. 1999 Facts and Figures, American Cancer Society
2. 1998,1999 Heart and Stroke Statistical Update, American Heart Association

                                For Agent Use Only                             3
                     THE TRUTH IS...
Over 85% of all CI claims come from
these 3 important coverages:
             Cancer
             Heart attack
             Stroke
Source: Critical Illness Health Study Group, Staple Inn Report (UK, March, 2000)



                                  For Agent Use Only                               4
“Outcome of a major health crisis is
   more likely to be survival than
                death…
       But having survived,
the cost of living is greater than the
           cost of dying.”

                  Dr. Marius Barnard, 1983

              For Agent Use Only             5
BENEFITS OF CRITICAL ILLNESS
        INSURANCE
 Provides the freedom to choose.

 Helps protect lifestyle and financial
security when a major illness strikes.

 It is a living benefit – which goes directly to
the insured!


                   For Agent Use Only               6
  CRITICAL ILLNESS
INSURANCE PRODUCT
      DETAILS
     LEADING EDGE INSURANCE
     (888) 677-6575
     Email: office@LeadingEdgeInsurance.com
     www.LeadingEdgeInsurance.com


     For Agent Use Only                       7
       COVERED ILLNESSES
Covered 100%:
 Life-threatening cancer
                                  These are “core”
 Heart attack                    illnesses covered.
 Stroke
 Major organ transplant
 Kidney failure (end-stage renal disease)
 Traumatic events (major burns, coma,
  paralysis, accidental loss of sight, hearing,
  speech)

                     For Agent Use Only                8
  COVERED PROCEDURES
25% of full benefit paid for:
 Coronary Artery Bypass Surgery
 Angioplasty

Policy is terminated after any benefit payment,
even if only 25% for coronary bypass or
angioplasty.

 Coverage not available for anyone who
 has previously had one of the covered
 critical illnesses or procedures.
                 For Agent Use Only               9
           POLICY PROVISIONS
 Issue ages: Adults 18–65
 Premium rate is determined by age at last
   birthday at policy issue
 Guaranteed renewable for life
 Rates are male/female, tobacco/non-tobacco
 Payment of any benefit terminates policy
 $10,000–$250,000 coverage available*
 Few occupation exclusions

 * Coverage reduces by 50% on the policy anniversary date in
 the year of the insured’s 65th birthday (or 5 years after issue if later).

                               For Agent Use Only                             10
            WAITING PERIOD
From the day the policy is issued, benefits will
not be paid until the policy has been in force...
 30 days for most illnesses or procedures
 90 days for life-threatening cancer (in most
  states) with 10% of face amount payable if claim
  incurred between 31st and 90th day of
  coverage

 After the 90th day, life-threatening cancer
  provides 100% of face amount.
                     For Agent Use Only             11
         SURVIVAL PERIOD


If the insured dies of the first-ever diagnosed
covered critical illness (when the waiting period
for the illness and the policy have been met),
the lump sum benefit is paid to the beneficiary
of the deceased's estate.




                   For Agent Use Only               12
    SELLING
CRITICAL ILLNESS
  INSURANCE
     LEADING EDGE INSURANCE
     (888) 677-6575
     Email: office@LeadingEdgeInsurance.com
     www.LeadingEdgeInsurance.com

    For Agent Use Only                        13
             WHY SELL IT?

 Your clients NEED this protection

 The concept is simple and
  attractive

 It’s affordable!

NOTE: Even small face amounts deliver big VALUE.

                     For Agent Use Only            14
              WHO NEEDS IT?
 Single adults – no spousal income if they become
  seriously ill
 Single parents – may not have a financial safety net
 Students and recent graduates – excellent source
  of coverage and affordable
 People with debt – financial obligations continue if
  they’re sick
 People who don’t have adequate life insurance –
  CI benefits can be paid to the estate
 People who want more options than those
  available with their HMO
                       For Agent Use Only                15
             WHO NEEDS IT?
 Stay at home parent – When stay-at-home parent is
  ill or needs to take care of ill spouse

 Middle America – often under-insured and debt
  vulnerable.

 Anyone with a mortgage – 1/2 of all home
  foreclosures are due to a serious illness; only
  2–3% are due to death.*

 People who are ineligible for DI
            *MDRT presentation www.mdrtcfp.org Tape #9966


                         For Agent Use Only                 16
         TARGET BY OCCUPATION
    People in these occupations may be excellent prospects
    for Critical Illness coverage if they are ineligible for
    Disability Income insurance:

•   Freelance writers/authors             • Stay-at-home spouses
•   Artists/photographers                 • Elected officials
•   Pilots/harbor master                  • Military personnel
                                            (no war-related)
•   Lounge or bar employees
                                          • Private nurses
•   Bridge & power line workers
                                          • Underground/mine
•   Structural steel workers
                                             workers (no explosives)
• Part-time employees                     • Students/recent graduates


                              For Agent Use Only                        17
Additional sources for prospects...

   Your existing clients!
   Business owners
   Health care professionals
   Others? Think of the NEED




                  For Agent Use Only   18
Talk about benefit uses...
Non-Medical Costs of Critical Illness
 Loss of income
 Bills and mortgage
 Transportation for treatment
 Specialized diets or equipment
 Child or adult daycare
 Caregiver’s time off work

Medical Costs of Critical Illness
 Co-payments and deductibles
 Medical costs not covered by insurance (drugs,etc.)
 Alternative treatments

                         For Agent Use Only             19
Point out most common uses
of benefit...

 Pay off mortgage
 Assist with bills incurred from illness
 Retirement
 Income replacement
 Vacation


                     For Agent Use Only     20
 Attracting the young CI buyer...
 Emphasize accidental events
 Highlight affordability (it is really inexpensive
  at young ages)
 Highlight the “protect your family/lifestyle”
  message



                    For Agent Use Only                21
PERSONALIZE THE
  POSSIBILITY!


Personalizing the likelihood
 of the event happening to
  “me” is essential to the
     sale of this product.


          For Agent Use Only   22
            USE STATISTICS
 Statistics ALONE do not sell this product!

 However, a few can alert the client to the need

 Find a few statistics that work for you (check web
  sites of American Cancer Society and American
  Heart Association)

 Combine the likelihood of having a heart attack
  or getting cancer with one that highlights the
  financial risk…
                      For Agent Use Only               23
Ask these key questions...
  Who do you know…

  Do you think it’s possible that YOU might
   suffer a Heart Attack, or get Cancer, or...?

  What would happen if you did?




                    For Agent Use Only            24
    3 BASIC STEPS
     TO THE SALE

 What   is it?

 Why do I need it?

 Can I afford it?


           For Agent Use Only   25
           SAMPLE RATES
$25,000 Benefit                 $50,000 Benefit
Non-Tobacco                     Non-Tobacco
Male, age 35                    Male, age 35
$21.85 mo.                      $37.97 mo.
Female, age 35                  Female, age 35
$19.12 mo.                      $32.52 mo.

Tobacco                         Tobacco
Male, age 35                    Male, age 35
$30.60 mo.                      $55.48 mo.
Female, age 35                  Female, age 35
$28.09 mo.                      $50.47 mo.
                  For Agent Use Only              26
CRITICAL ILLNESS
  INSURANCE
  DEFINITIONS
     LEADING EDGE INSURANCE
     (888) 677-6575
     Email: office@LeadingEdgeInsurance.com
     www.LeadingEdgeInsurance.com


     For Agent Use Only                       27
FIRST EVER DIAGNOSIS...
         The insured has never,
      before the Policy Issue Date,
    undergone a procedure included
           in the definition of,
        or been diagnosed with,
     a Specified Covered Condition
      by the appropriate specialist.

               For Agent Use Only      28
HEART ATTACK...
 Acute myocardial infarction –
  death of part of the heart muscle due to
  blockage of one or more coronary arteries and
  resulting in loss of normal function of the heart
  diagnosis by a cardiologist

 Excluded: old (established) myocardial
  infarctions


                     For Agent Use Only               29
HEART ATTACK...
Diagnosed by a physician board certified in
cardiology and based on both –

 New clinical presentation and/or EKG changes
  consistent with evolving heart attack

 Elevation of cardiac biomarkers (enzymes)
  to a level consistent with diagnosis of
  heart attack

                    For Agent Use Only           30
HEART PROCEDURES...
Coronary Bypass Surgery (Covered at 25%)

 Actual undergoing of coronary artery bypass surgery
  using either a saphenous vein or internal mammary artery
  graft for treatment of coronary heart disease deemed
  medically necessary according to criteria established by
  the American Heart Association or the American College
  of Cardiology. Must be performed by U.S. licensed
  cardiologist.

 Excluded: Other techniques (surgical or non-surgical)
  such as laser relief or any other intra-arterial procedures.

                        For Agent Use Only                   31
HEART PROCEDURES...

Angioplasty (Covered at 25%)
 Actual undergoing of a percutaneous transluminal
  angioplasty deemed medically necessary according to
  criteria established by the American Heart Association or
  the American College of Cardiology. Must be performed
  by a U.S. licensed cardiologist.

 Excluded: Other techniques (surgical or non-surgical)
  such as laser relief or any other intra-arterial procedures.



                        For Agent Use Only                   32
LIFE-THREATENING CANCER...
 A malignant neoplasm (including hematologic
  malignancy), which is characterized by the
  uncontrolled growth and spread of malignant
  cells and the invasion of tissue.

 Leukemia and Hodgkin’s Disease (except
  Stage I) are included



                   For Agent Use Only           33
LIFE-THREATENING CANCER...
Not included as life-threatening cancers:
  Pre-malignant tumors/polyps
  Cancer In Situ (a tumor that has not spread
   beyond its original site)
  Carcinoid of the appendix
  Stage 0 transitional carcinoma of the bladder
  Very early stage Prostate Cancer (TNM stage
   T1NOMO)
  Skin cancers other than malignant melanomas
   invading dermis or deeper
                    For Agent Use Only             34
LIFE-THREATENING CANCER...
Uncontrolled growth of abnormal cells that
   invade healthy cells and if untreated can
   interfere with normal body functions and
   ultimately cause death.

Policy pays when cancer is:
  Malignant
  Growing uncontrollably outside of its
   original area
  Pathologically diagnosed
                    For Agent Use Only         35
STROKE...
Any acute cerebral vascular accident producing
  neurological impairment and resulting in paralysis or
other measurable objective neurological deficit
  persisting for at least 30 days.

 Excluded: Transient ischemic attack (mini-stroke)
 head injury, chronic cerebrovascular insufficiency and
 reversible ischemic neurological deficits (RIND)




                      For Agent Use Only              36
STROKE...
 A stroke occurs when a blood vessel bringing
    oxygen and nutrients to the brain bursts or is
    clogged by a blood clot or some other particle
    resulting in part of the brain not getting the blood
 flow it requires.

 Policy pays when -
  Resulting measurable neurological injury/deficit
   lasts for at least 30 days



                      For Agent Use Only                   37
MAJOR ORGAN TRANSPLANT...
 Receiving a transplant of:
    Heart
    Lung
    Liver
    Kidney
    Pancreas (except for the transplant of islet cells)

 Recipient must be registered in United Network of
  Organ Sharing.


                      For Agent Use Only              38
MAJOR ORGAN TRANSPLANT...

  Human organs as listed

  Insured must be the recipient, not the
   donor

  Kidney failure usually triggers CI claim
   prior to transplant




                  For Agent Use Only          39
END-STAGE RENAL FAILURE...

  Chronic and irreversible failure of both kidneys
   which requires periodic and ongoing dialysis




                    For Agent Use Only                40
TRAUMATIC EVENTS...
Accidental Loss of:
 Sight
Permanent and uncorrectable loss of sight in both eyes as a
result of accidental injury. Acuity worse than 20/200 in both
eyes or field of vision less than 20 degrees in both eyes.
 Hearing
Permanent loss of hearing in both ears, with an auditory
threshold of more than 90 decibels in each ear, resulting
from accidental injury.
 Speech
Total, permanent and irreversible loss of your ability to
speak as result of an accidental injury.

                         For Agent Use Only                 41
TRAUMATIC EVENTS...
 Major Burns
Third degree burns covering at least 20% of the surface
area of your body.
 Paralysis
Complete and permanent loss of use of two or more
limbs through neurological injury for continuous period
of at least 180 days.
 Coma
State of unconsciousness, from which you cannot be
aroused; and, external stimulation produces no more than
primitive avoidance reflexes. State has persisted
continuously for at least 96 hours.
                       For Agent Use Only                 42
 UNDERWRITING
CRITICAL ILLNESS
  INSURANCE
     LEADING EDGE INSURANCE
     (888) 677-6575
     Email: office@LeadingEdgeInsurance.com
     www.LeadingEdgeInsurance.com


     For Agent Use Only                       43
       UNDERWRITING CI

Basic Underwriting Principles:

  Morbidity
  Anti-selection
  Risk factors



                For Agent Use Only   44
       UNDERWRITING CI
       * Some people cannot qualify *

 Underwriting differs from Life Insurance
 Focuses on morbidity – not mortality
 Underwriting accepts, rejects or rates
   No riders, very limited exclusions
 Medical history
 Family history
 Risk factors
                    For Agent Use Only       45
        UNDERWRITING CI
Underwriting Information:
 Application
 Field underwriting (This is VERY important!)
  See pre-screening checklist in Agent Guide!
 MIB
 Medical records
 Paramedical, fluids
 APS
 Telephone interview

                 For Agent Use Only              46
PRE-SCREENING CHECKLIST

  This is a “first occurrence” product and
  there are some conditions that will be
 declined, so it is important to pre-screen
          your prospects to avoid
    disappointment – theirs and yours!




                 For Agent Use Only           47
   PRE-SCREENING CHECKLIST

       Warn your client that not everyone can
         qualify for this valuable coverage.

Then ask:
 Have you ever had any of the following?
   Cancer
   Heart Attack
   Stroke
   Diabetes (insulin dependent or uncontrolled), etc.
  The complete Pre-screening checklist is in your Agent Guide.

                            For Agent Use Only                   48
                 FAMILY HISTORY
      Family history can affect eligibility or rating.
         Family history is an important predictive factor
                  for incidences of cancer and
           cardiovascular diseases, which are the
         main coverages under critical illness policies.

Assessment of the family history risk will vary based on:
 the number of affected first-degree relatives (defined as
   mother, father, brothers and sisters)
 their age at diagnosis (not at death)
 the current age of applicant
 and sometimes, the sex of applicant
                            For Agent Use Only                49
     OTHER RISK FACTORS

Other risk factors that can affect eligibility or
rating:

   Medical history
   Height/weight/age
   Blood pressure
   Serum cholesterol


                   For Agent Use Only               50
What if pre-screening shows your
prospect is not eligible?
   Ask your prospect (who now knows the value
    of this coverage) who of his/her family and
    friends should find out about this important
    protection. Referrals will make this call
    worthwhile!

   Shift gears to talk about another product
    he/she may qualify for – DI or Life.


                     For Agent Use Only            51
 CRITICAL ILLNESS
INSURANCE CLAIMS

     LEADING EDGE INSURANCE
     (888) 677-6575
     Email: office@LeadingEdgeInsurance.com
     www.LeadingEdgeInsurance.com




     For Agent Use Only                       52
                 CLAIMS

The claims process is simple:

 Policyholder returns completed form with
  physician’s statement

 Any unpaid benefit at claimant’s death is
  paid to the beneficiary or the claimant’s
  estate if policy conditions are met


                  For Agent Use Only          53
                   CLAIMS
Common Reasons for Claim
Declination:
 Not an insured condition
 Failure to meet policy definitions (including
  waiting period for coma, paralysis, stroke, etc.)
 Insufficient medical evidence
 Incident occurred within waiting period
 Misrepresentation

                    For Agent Use Only                54
               TO SUM UP

 You have many clients and prospects who
  NEED this protection

 It is simple and gratifying to sell when you
  pre-screen your prospects

 Your clients will thank you for bringing
  them this important financial protection


                   For Agent Use Only            55
                KEEP IN MIND...
• Our goal has been to make this training vehicle easy to
  understand and accurate. If, inadvertently, a discrepancy
  exists between this guide and the actual
  AssurityBalance® Critical Illness Insurance contract, the
  contract provisions will govern.

• Product availability varies by state.

• Benefits, rates, and policy provisions may vary by state.

• Critical Illness Insurance is not a substitute for health
  insurance. This policy may not be appropriate for
  Medicaid recipients.
                         For Agent Use Only                   56
Marketed through
LEADING EDGE INSURANCE
(888) 677-6575
Email: office@LeadingEdgeInsurance.com
www.LeadingEdgeInsurance.com




                              Underwritten by
                     Assurity Life Insurance Company
                               1526 K Street
                         Lincoln, NE 68508-2533




     Policy Form # A-CI 001                         MKT/CI-103 (4/03)




                               For Agent Use Only                       57

								
To top