Why Sell Cancer and Critical Illness Insurance?

rousemark

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Agents often ask why should I sell limited benefit plans such as cancer or critical illness insurance.

Well, the first reason is, as evidenced by the video below, there is a need for it. The critics argue limited benefit palns are a bad buy based on, "what if I have a policy that only covers this and that happens? What if I only have coverage for cancer or cancer and heart trouble and I have kidney disease?" I like to reverse the question, what if I can't afford the prohibitive premium for a plan that would cover every possible illness and I don't buy the cancer coverage that I can afford because it only covers cancer and then am diagnosed with cancer? Which would be the bad buy? Buying into the argument I should go without coverage or the cancer plan?

It is said that 1 out of 2 men and 1 out of 3 women will experience cancer in their lifetime. Many of these will be minor cancers but a good portion of them will be serious, long term treatment cancers that can devastate a family financially as well as emotionally.

60% of the cost of treating cancer is non medical expense not covered by even the best of medical insurance plans. Most people experience Loss of Income -- often for both wage earners.. When one family member has cancer the other often has to take off in order to transport the one who has cancer back and forth for treatment. If you have a child that has cancer, you are both going to take off when that child is having treatment or is in the hospital.

Then there are miscellaneous things such as Child Care, Transportation, Special Diets, Clothes, etc

There are Deductibles to be paid by the insured in almost every health insurance plan And, what about Coinsurance? ---- Most people never know exactly what is not covered by their major medical insurance until it comes time to use it.

95% of cancer patients have insurance, but 1 in 4 said their plan paid less than expected. 1 in 8 people were surprised that their plan wouldn't pay anything for a bill they thought was covered. 1 in 10 people reached the limit of what their insurance would pay for treatment. 1 in 12 people were turned away or unable to get a specific type of treatment because of insurance issues. 25%used up all or most of their savings. 13% borrowed money from relatives.

All these things are terribly expensive and that is one of the reasons
62% of all bankruptcies are due to medical expenses

These are not scare tactics.. these are hard, cold facts. If it happens to one of your clients and you had not at least offered the opportunity to purchase a product that would have prevented it, how will you feel? I have a friend that just went into the hospital and may be there for months. I had never mentioned cancer insurance to her and I can tell you, I feel rotten about it.

The need on the part of your clients is there but what is in it for you? After all you have to make a living for your family while offering a service to your clients.

First of all, there is a large market base.. Cancer coverage is available to anyone who has not been treated for cancer in the last 5 - 10 years (varies with companies). Individual plans are available ages 18-85 and family plans cover children from birth to adulthood. Almost everybody is a prospect even those that have other coverages since the plans pay benefits direct to the insured in addition to any other reinsurance coverage they may have.

Compensation can be very good. Commissions usually range from 50% -75% first year and 10% - 15% renewals. And, the best part is that renewals are usually level for the life of the policy. I still get renewals on cancer plans I sold 20 years ago.

Simple product with simple underwriting... No need for laptops or tablets in the house. In the case of CI, the health questions usually are restricted to whatever illness that are to be covered. If you selling a cancer only policy, the questions are the standard HIV question and have you ever been diagnosed with cancer.. That is it. No restrictions on job status, occupation type, etc.

Wide market, Need for the product, lifetime compensation, no hassle underwriting. Sounds like pretty good reasons for offering cancer and CI insurance to me. :yes:



https://www.youtube.com/watch?v=o5P-zrdhJgI
 
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Wide market, Need for the product, lifetime compensation, no hassle underwriting. Sounds like pretty good reasons for offering cancer and CI insurance to me. https://www.youtube.com/watch?v=o5P-zrdhJgI

yea...right up until jan 2014....then everyones paying the new high health insurance rates then there is no extra money....if there is they really need to buy life insurance.......
 
yea...right up until jan 2014....then everyones paying the new high health insurance rates then there is no extra money....if there is they really need to buy life insurance.......


Don't believe it will be an either or situation for most people. We live in world where change is the only thing that remains the same. Today's solutions may not be what is needed in the future..and that applies to life coverages as well as other insurance. But we don't live in the future; we have to make our plans today.

I was dumb enough to drop my cancer insurance in order to reduce my premium outlay when I became eligible for medicare. Bought a plan F so my med bills were taken care with the exception of an increase in my drug costs. But I can tell you we still took a financial hit. Can't imagine how tough it would have been if I had been working, living basically payday to payday, depending on earned income to support my family plus having the out of pocket expenses most MM plans require.

Not asking everyone to agree with me as to the need for CI, but am asking agents to seriously consider it and make up their own minds. As you can tell, what little mind I have is made up tighter than a bunk in a basic training barracks. :biggrin:

BTW, I didn't give you the thumbs down.. You are entitled to your opinion and I respect you for expressing it. I really don't like the way that feature is set up because a person can be critical and not show their "face".. If you want to disagree with someone do it out in the open.
 
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Health insurance also doesn't pay the house payment, electric bill, lost time from work, spouse's lost time from work, auto payment, insurance payments, groceries,ltc, travel for treatment etc.
 
Don't believe it will be an either or situation for most people.

every thing cost money....so when necessity raise some things have to go....had this just posted on my fb wall...

I wish I understood what any of that means... we have been without health ins. for more than 10 years.. when it hit $800 a month we had to drop it.20 minutes ago · Like



Health insurance also doesn't pay the house payment, electric bill, lost time from work, spouse's lost time from work, auto payment, insurance payments, groceries,ltc, travel for treatment etc.

so thats what you tell a prospect....hahahaha..reminds them how hard it is to pay and keep what they have now...they hear ...blah blah $$$ blah blah $$$ blah blah $$$ blah blah $$$
 
No I give the prospect my father's story. Within two weeks of being diagnosed he was no longer working. His 50k policy kept he and my mother from losing the house and everything he worked a lifetime for. That 50k was equal to his annual salary. When he died the life insurance kicked in. I give a personal story. I was just spelling out the basics for us supposedly smart agents
 
No I give the prospect my father's story. Within two weeks of being diagnosed he was no longer working. His 50k policy kept he and my mother from losing the house and everything he worked a lifetime for.

so a full disability policy would have been a better fit....why stop at the big C ....
 
Full db would have only given him 60% of his income. Worthless to him. That 50k helped my parents in his last 6 months. And as a self employed electrician proving all the wage info would have been a nightmare. All he had to do with American General was fill out a one page app and bammop presto he was covered. Bought the policy in May 1990, diagnosed the August 1990, paid 50k September 1990, dead March 1991, then life insurance. Plus a db policy would not have paid my mother's lost time at work
 
Full db would have only given him 60% of his income. Worthless to him. That 50k helped my parents in his last 6 months.


and if lived longer than 6 months and blew though the 50k....still not able to work .....then what
 
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