Presenting the CI Solution/Tailoring your Message

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Critical Illness TrainingCritical Steps
Module 3 Presenting the CI Solution Tailoring
Your Message
For agent use only. Not for use with
consumers. 15-425-02251 C (12/12)
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• What does a good salesperson and a good lawyer
  have in common?

3
Now we present the CI product

• Four questions/statements meeting
• Product
• Amount?
• Premium?
• Definitions?
• Most importantly
• Tailoring your message

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• People hate to be sold, but they love to buy.
• Whats the secret?

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The four questions CI meeting

• Do you know anyone?
• Did they plan on it? Or, was it unexpected?
• Was there unplanned emotional or financial strain
  on the household/ business?
• Would cash have helped?

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CI amounts?

• No obvious needs analysis like life or DI
  insurance
• If you were diagnosed, what are your immediate
  concerns?
• If you knew you were going to be diagnosed in 3
  months, how much coverage would you buy today?
• If it was me, this is how I would like it to
  look.

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50,000 not a lot of money?
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CI a doctors design

• If the insurance industry would have invented it,
  the plan could have been
• Prove to us the critical illness happened, then
• Show us how your life was impacted by medical
  bills or time missed from work, then
• We will give you some of the benefit for which
  you have been paying premium.
• Car and home insurance...run through examples

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Influence of the doctors design

• You suffer a critical illness that meets the
  insurance companys contractual terms.
• The insurance company gives you the benefit.
• You decide how the money can best help you.

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The definitionsa positive

• Rigidity is a positive at claim
• Invented by a doctor
• No subjectivity by a claims person at the home
  office
• Definition Doctors report Yes or no
• Read this booklet

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Presenting CI premium

• As a percent of benefit
• Not 900/year for 100,000
• About __ percent of whatever benefit you think
  is right
• About __ percent pre-sells ratings in an
  underwritten rate-able product

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Tailoring your message

• Product ownership
• Business owners
• Wealth
• Personality types
• Very important with buying NEW products, services
  and decisions like CI.

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Critical illness funds

• Uses of critical illness insurance benefits vary
  widely

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Hotel towels

• Create an expectation
• This is how other business owners used funds

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Current clientMonday morning phone call
introduction

• Think of your longstanding client(s) who do not
  own CI.
• Monday morning phone call
• If you were to have called me this morning and
  said, Ive bought everything you have ever put
  in front of meon Friday I was diagnosed with
  cancer what do you have for me?...thats not a
  conversation I want to have with you yet.
• Didnt die, havent missed 4 months of
  worknoninsurance-worthy event?

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Current client strategy completion

1. Review planning strategy and re-confirm rationale
2. Introduce how major health change represents risk
3. Introduce how CI can be a solution for a small
   percentage of the risk

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Life insurance why?

• Major illness or event takes your lifeensure
  family
• What if it does not take your life?...a
  different goal
• And, you will be around to see outcome
• Script

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Life insurance goal?

• Why are you buying life insurance?
• Because you think something bad is going to
  happen?
• You need to have it because it would be
  irresponsible or burdensome not to have it.

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Likely?

• Whats more likely?
• Becoming an angel prematurely?
• Being diagnosed with a critical illness?

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Life insurance client

• New vs. old planning
• Modern planning
• A leading Canadian sellerthe banks

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A leading seller of CI in Canada?

• Would you like the old type of mortgage
  insurance or the new?
• The old one helps pay off your mortgage if you
  die the new one also helps pay it off if you are
  diagnosed with invasive cancer, heart attack or
  stroke.
• Statistically, before the recession, almost half
  of mortgage foreclosures were caused, in part, by
  a disability.
• Which would you like, the old or new?
• What if every life insurance inquiry OPENED a CI
  discussion?

"Get Sick, Get Out The Medical Causes of Home
Mortgage Foreclosures, HEALTH MATRIX Vol. 1865,
Christopher Robertson, Richard Egelhof and
Michael Hoke. (2008)
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Medical coverage

• Brakes/Airbags
• Should there be significantly more relief, fewer
  deductibles, co-pays and maximums if its cancer?
• Trading deductibles for downside protection...
  It is insurance, right?
• Push out deductible
• Funded by CI if its a covered event
• Comfortscreated expenses - spouse, hotel, nanny,
  etc.

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Disability client

• DI Why not 100 replacement?
• More claims
• Longer claims
• Human nature of other people

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Group/individual disability income usually a
deal-killer

• Is a critical illness insurance opportunity
• My clients vs. people for whom ratio required
• Unfair, wrong, deserve
• Minimum standard for ethical people with real
  claims
• I have always been frustrated that good, honest
  people....

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Disability income

• The perfect disability claim
• Designed to hurt
• Example 4,000/month after 91 days
• No paycheck for 4 months (16,000)
• Short 1,000/mo. for one year (12,000)
• FIRST 28,000 of CI-only ensures NO PAY CUT to
  household dealing with cancer (but no hotels, no
  prescriptions, no co-pays, etc.)

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Disability client

• It might just be me, but I see a difference
  between...
• Sore back and cancer
• Broken leg and stroke

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Critical illness and DI a great match

• Think of disability insurance as the brakes on
  your car
• Think of critical illness insurance as the airbag
• Also, DI writers love thisif I had to choose
  between two carsI choose brakes
• But most cars today have both!

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CI the quality accountant

• Question How good is your accountant?
• The better a client feels their accountantthe
  more likely they are short on their Disability
  coverage and need some Critical Illness.
• Script

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Blue collar

• Show pricing (use actual figures, gender, policy
  amount, elimination period, etcexample below)
• Disability
• Premium for your category 200/month
• Premium for lawyer/accountant 80/month
• Critical Illness (100,000)
• Premium for you 50/month
• Premium for lawyer/accountant 50/month

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Investment client

• Non-market risk
• Is your portfolio subject to health risk?
• Irony of it working
• Illness timing

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Investment clients two ways to earmark for this

• Block off a big health care emergency fund and
  use the balance to live on, and for travel,
  entertainment and the things you have earned
• Block off a small monthly amount for CI insurance
  and use the bigger balance to live on and for
  travel, entertainment and the things you have
  earned
• Wealthy clients I am self insured/can use my
  own money is covered in the Objections Module in
  series
• Script

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Performance-based

• Self-employed or salary plus bonus
• If your client cant work, theyre not just down
  20 due to reduced disability benefits
• Bonus insurance?
• Script

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Students and young adults

• Becoming independent
• Very little financial margin (illness)
• No rent insurance like mortgage insurance
• Independence insurance/pride

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Smokers lung cancer coverage

• What would you pay for a product that paid you
  ___, if you were diagnosed with lung cancer?
• Script

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Business owners unique risks opportunities

• Impact of your absence
• Unscheduled 4-month vacation?
• Script

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CI and the business owner

• What might keep you from work?
• Flu
• Sore back
• Broken leg
• Are there some things that keep your employees
  from coming to work that wouldnt stop you?
• Script

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Disability coverage and owners

• Higher incomes often not adequately covered
• Group plan maximums
• Script

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Attachment business owners

• You said
• But they heard This is like lump-sum disability
  coverage, and I only need to be away from my
  company for one month to get the money.
• You need to run the calendar.
• I would be delighted to deliver the check to you
  
• at your office/on the job site.
• Script

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Business owners

• Do you make your business go?
• Does your staff think that?
• Does your banker think that?
• Do your clients think that?
• Script

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3 key points

• --
• --
• --
• Best Sales Idea

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Frank Bettger

• How I raised myself from failure to success in
  selling

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Summary of the six elementsof this training
Element Client Question Advisor Talking Point
1 Whats this CI product all about? CI A Doctors Concept
2 Why are we talking about this CI product NOW? The Three Realities of Health
3 What can this CI product do for ME? What CI Does Attachment
4 What could this CI product look like for me? Solution Building
5 What to do now? Action
6 What happens now? Process Description/ implementation
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Script the life insurance client

• Please let me know why you took out this life
  insurance? Is it because you want to use or claim
  it?
• I am not surprised with a quick no to this
  question, as the last thing insurance people want
  a claim on is their life insurance.
• Is it because you think you are likely to use
  or submit a claim on it in the short term?
• Again, this is almost always a no, and
  typically you can only get coverage if the
  insurance company agrees that you are not too
  likely to use it.
• Many people who think through why they
  have/want this coverage come up with something
  like I dont think I/my family is going to use
  it in the near future and I/they dont want to,
  but in the off-chance that I do pass away it
  would be irresponsible of me and devastating to
  my family not to own this. Is that kind of how
  you feel?
• (continued)

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Script the life insurance client

• I think that is smart and admirable, and I
  think this coverage is important for those
  reasons. It is unfortunate that many people buy
  this coverage for an event they think wont
  happen. And if it does, everyone else but them
  benefits (because they are gone), and they are
  never presented with an important complementary
  product covering a risk far more likely to occur
  in the short terma product the client (and the
  family) can benefit from.
• A question for you, what do you think is more
  likely in the short term to occur to youdying or
  a major health scare like cancer, heart attack or
  stroke that knocks your world on its side
  financially and emotionally for a period of time?

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Script the quality accountant

• One reason some business owners cant get the
  amount of DI coverage they want is due to the way
  that they take their income.
• With employees, its transparent what they
  earn. They show the insurance company their
  salaried income and the insurance company
  typically gives them a set percentage of that in
  a disability benefit.
• With owners, the good news is compared to
  straight-salaried income, they have different
  ways by which they can be paid. There are
  dividends, travel and expense accounts, income
  splitting, etc. The challenge is when the amount
  of DI insurance is determined, insurance
  companies often dont count many of these types
  of income or personal expenses that get paid by
  your business. (continued)

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Script the quality accountant

• As one person put itthe better a business
  owners account, the tougher it is for that owner
  to get a level of disability income coverage that
  is really representative.
• While I cannot make insurance companies change
  their rules and give you an extra __ a month in
  disability coverage, I can make sure that if
  something big happened to you like cancer, heart
  attack or stroke, the insurance companies would
  send you an additional check so you can focus on
  your recovery.
• Does it make sense that we make sure you dont
  end up relatively worse-off than your employees
  when facing a major health event?

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Script investment client

• I think we have done an excellent job in
  structuring a plan for your retirement planning.
• Our plan to put aside ___ with the goal of
  building a nest egg of __ by age __, all so you
  can do things like ___, ___ and ___ in your
  retirement years.
• There is a risk, which has nothing to do with
  investment or market performance, that can
  severely impact peoples investment plans, and
  that most do not recognize or contemplate
  addressing until it is too late.
• (continued)

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Script investment client

• Very few investment plans factor in how an
  investment strategy would compensate for a major
  health event like cancer, heart attack or stroke
  sometime over the next ___ years. Im referring
  to an event that either disrupts a clients
  contribution pattern or worserequires them to
  withdraw funds to help them with their health
  recovery.
• Using the innovative product we are going to
  talk about today, we have a way of shifting that
  risk off your portfolio and yourself and onto the
  insurance company. With the odds of someone your
  age having a major illness in the next __ years
  being ___, I think its important to not minimize
  that risk. Does that make sense?

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Script performance-based

• Whats the breakdown of your income each year
  between guaranteed salary and performance
  compensation? (For example, 75,000 base and an
  average 75,000 bonus)
• As a person in a performance-based position
  and as a achiever in a performance-based
  business, you have extra exposure to the impact
  of a major illnessthat a straight salaried
  employee does not have. Its an exposure that
  many people dont realize exists until its too
  late.
• The straight-salaried employee battles through
  a major health issue with most of their income
  replaced by their DI insurance.
• People like you, who are paid based on
  performance, typically also get their base
  salaries covered with DI coverage, but heres the
  problem
• (continued)

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Script performance-based

• If you had to go through a health scare
  beyond your controllike cancer, heart attack or
  strokeand it either kept you from working full
  time or impacted your ability to perform while
  working, do you think it would be fair that you
  might get your bonus or commission? I dont.
• We can transfer that health risk off your back
  and onto the insurance company with a rapidly
  growing product called Critical Illness
  insurance.
• For people like you, we could even call it
  performance insurance you keep the
  responsibility of having to perform to make your
  targets when youre healthy, but if you have to
  deal with a major critical illness, a cash
  benefit is paid from the insurance company, which
  can help replace your income if your targets are
  not met.
• Does it make sense to take the uncontrollable
  health risk off your plate?

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Script smokers

• You probably get tired of people reading you
  the sides of cigarette boxes and telling you that
  smoking is bad for you. I suspect you get that
  alreadyright?
• What would you be willing to pay for an
  insurance policy that paid you a payment of say
  50,000 if you were diagnosed with lung cancer?
• Whats amazing is that such a product exists,
  and you can get it even if the insurance company
  knows how much you smoke. But more importantly,
  the policy pays out that lump sum not just for
  lung cancer, but the other life-threatening
  cancers, heart attack, stroke and all the other
  conditions listed in the policy.
• (continued)

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Script smokers

• If you saw value in the concept of shifting
  the risk of some of the financial consequences of
  just lung cancer off your back and onto an
  insurance company using a policy, doesnt it make
  significantly more sense to shift some of the
  costs of these other health conditions as well?
• Further, a year after you do quit smoking, if
  you are still healthy, you can apply to have your
  rates dropped to the same rates as someone who
  never smokednot bad.

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Script four-month vacation?

• If you decided today to take a 4-month
  vacation, and starting tomorrow, without
  pre-planning with your staff or working while you
  were away, how might the business be impacted?
• You can control your choice to take a
  four-month, unannounced vacation, and I suspect
  you never would take one, but what none of us can
  control is the possibility that a random illness
  like cancer will take us out of our business
  while we battle through and recover.
• I think it makes sense, with all the work you
  have put into the business, to shift that health
  risk off you and onto an insurance company. Does
  that make sense to you?

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Script CI and the business owner

• It may be the biggest reason business owners
  are drawn to this product is they have a hard
  time envisioning themselves away from their
  business while afflicted with the illnesses or
  conditions that cause many disability insurance
  claims and drive up that insurances pricing.
• If I asked you to name some things that could
  happen to your health and knock you out of work,
  I suspect that a mild back problem or stress, two
  of the biggest causes of disability claims, would
  not be at the top of the list, correct?
• Its uncanny, but the things that business
  owners think could impact them are the health
  scares beyond our controllike the conditions
  covered by this Critical Illness product cancer,
  heart attack, etc.
• What many business owners like about this
  product is their premium is only paying for
  protection against these big things, and is not
  being used to cover things like back
  strainthings they would never file a claim for.

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Script disability coverage and business owners

• Critical illness insurance is often more
  important for business owners, compared to their
  employees, when it comes to managing the risk of
  illness.
• The reason is Typically, the higher
  someones income, the lower the percentage of
  that income thats covered by disability income
  insurance.
• What this means is the business owner takes a
  bigger percentage drop in income, if they become
  disabled, compared to their lower-paid employees.
  Does that make sense to you?
• Many owners are anxious to hear how they can
  remedy this situation.

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Script running the calendar

• Sometimes people either misinterpret the way
  this product works, or in the case of business
  owners like you, they think it sounds too good
  to be true.
• Many think CI Insurance sounds like lump-sum
  disability insurance that must still require time
  away from running their business to receive a
  payment.
• I cannot stress the following point enough to
  business owners If you are diagnosed with any of
  the covered illnesses or conditions, you do not
  have to miss any time, whatsoever, from running
  your company to get paid your Critical Illness
  Insurance benefit.
• (continued)

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Script running the calendar

• This is important to most business owners
  because it means you can work as much as you want
  or are able while recovering, without impacting
  the insurance companys benefit payout.
• So to be crystal clear, a business owner like
  you could be diagnosed on March 1 with cancer or
  any other covered condition, and go to work March
  2, 3 and 4, then take a day off for treatment on
  March 5, then be back at work at the business on
  March 6, 7 and 8, and so on, for the rest of the
  month.
• On April 1, or around a month after diagnosis,
  I would be delighted to deliver the benefit
  check, wherever you arewhether at the hospital,
  home recovering, at your office, on the roof of
  your next project, etc.

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Script how valuable are you?

• This approach is particularly effective when the
  owner either truly drives, or perceives he or she
  drives, the success of the business. The
  scripting plays off this perception by indicating
  it would take a team of people to replace the
  owners efforts should a health crisis take them
  away for a period of time. This is another
  example of the ripple effect of illnesswhere the
  business owner is impacted, but so are many
  people around them.
• If you were pulled from your business for a
  period of time, how long would it be before the
  business started to feel the negative
  consequences? Would it be easy to find or attract
  the right caliber of interim replacement to help
  step in for a period of time?
• If it were a major illness like cancer that
  pulled you away, would it help bridge the
  business if you had a pot of extra money to bring
  in additional help in the form of a number of
  people, until you were healthy and back full
  time?

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Questions?
For agent use only. Not for use with
consumers. 15-425-02251 C (12/12)