Product Design/Underwriting

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Critical Illness TrainingCritical Steps
Module 6 Product Design/Underwriting
Policy Form Nos. I H0810 or CI 005, I H0820 or
CI 007. Policy and rider availability, rates and
features may vary by state.
For agent use only. Not for use with
consumers. 15-425-02251 F (12/12)
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Good life insurance traininghurting our CI
business?

• Amounts?
• Product choice?
• Three questions and the order
• Do I need?
• How much?
• What type?

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CI amounts?

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

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50,000 not a lot of money?
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Discuss timelines... not premium structures

• What is your thought on how long you would want
  this level of protection?
• Do you see yourself perhaps wanting more
  protection at a certain time?
• Do you see yourself perhaps wanting less
  protection at a certain time?

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Term vs. permanenthow is good life training
hurting us?

• Life insurance permanent rationale
• You will die and there will be a problem
• Renewals will be costly if you cannot re-qualify
  health-wise

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CI Term?

• Not 100 percent sure that a CI will ever happen
• Critical illness more likely than dying
• Cancer will strike one in every two men and one
  in every three women in the U.S.1
• Coronary events occur every 25 seconds, but 88
  percent of those stricken are able to return to
  their usual work.2
• Someone suffers a stroke every 40 seconds, but 85
  percent survive. 2
• Term CI renewals versus life insurance renewals

1. Cancer Facts Figures, American Cancer
Society, 2010 2. Heart Disease Stroke
Statistics-Update, American Heart Association,
2010
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Ways to sell CI

1. Rider on Life
2. Rider on DI
3. Simplified CI
4. Fully Underwritten

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Rider on life insurance
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Return of Premium at death

• More practical on permanent products
• More likely to happen later in life
• Later in life refund also more meaningful
• Emotional part of asset protection (case)
• Borrowing from estate!
• Automatically included in both simplified and
  fully underwritten

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ROP how do they do it?

• Lapses
• Claiming
• Desire to cancel
• Therefore Cash flow and discipline

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Simplified app
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Fully Underwritten CI basics

• Issue ages 18 to 64
• 50,000 to 500,000 in benefits available
• 21 conditions covered
• Guaranteed renewable for life
• Riders include
• Disability Waiver of Premium Rider
• Accidental Death Benefit Rider
• Spouse Critical Illness Benefits Rider
• Childrens Critical Illness Benefits Rider

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Covered conditions
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Underwriting

• Higher Limits

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CI underwriting vs. DI underwriting

• Newness of employment
• Financial documentation
• Back problems
• Mental nervous disorders
• Numerous exclusions

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CI vs. life insurance

• Risk of diagnosis/survival vs. death
• Family history - where applicable
• Breast cancer
• Colon cancer
• Prostate cancer
• Diabetes
• Heart disease
• Multiple sclerosis

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Modifications

• Modifications are good?
• Age-rate up
• Ratings and choices

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Underwriting pre-screen
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Preferred underwriting
If your client qualified for preferred life
insurance with an approved company, he or she may
be eligible for 50,000 to 100,000 of fully
underwritten Critical Illness Insurance!
Approved Companies American General AXA Banner G
enworth ING John Hancock Lincoln Benefit
Life Lincoln Financial Met Life (Elite Elite
only) Minnesota Life Mutual of Omaha North
American Ohio National Principal Protective Pruden
tial Transamerica

• Four easy steps to apply
• 1. Critical Illness application must be
  submitted within six months of preferred life
  exam.
• 2. Applicant must have qualified for preferred
  life with an approved company (see list at
  right).
• 3. Complete page 1 of the Assurity application,
  plus the Critical Illness Product Section and
  Critical Illness Health Section.
• 4. Send completed application with a copy of the
  medical exam and schedule page from the
  preferred life policy.

Underwriting may occur in certain situations,
e.g., family history admitted on the CI medical
page of the application.
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Exclusions / Ratings

• Pre-Selling
• Three times to have the conversation

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Pig and chicken
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Dr. Gonzales the Armour Institute of Technology
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Contest
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Next steps

1. Conference call
2. Access to website
3. Most important sale

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