National Insurance Agency Critical Illness

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National Insurance Agency Critical Illness

• Ken Smith
• Director of Critical Illness Disability
• 800/276-7619 ext 4409
• ksmith_at_assurity.com

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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

Its 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

• Meets A Need Not Met by any Other Product
• Makes a Difference in Peoples 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 Experience

• UK 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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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 12
• Tuberculosis 11
• Enteritis 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...
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...
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)
Alzheimers 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 youve 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
• Childrens 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 Insureds
  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 Alzheimers 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 Dont 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?
Health Insurance
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Are You Selling A Stool With One Leg?
Critical Illness
Association
Health Insurance
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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