Will 32 million Americans own critical illness insurance by the end of 2015? I’m betting on it. Chances are you’ve never heard of critical illness insurance. To be honest, it’s gained little exposure in this country. That said, it is a very big seller abroad in countries like Britain, Canada, throughout Southeast Asia.
But I don’t want to urge you to rush out and start selling CI protection quite yet. Your clients are not educated enough on the topic. What I want you to do is consider the following four facts.
Critical Illness Fact One
Some 1.4 million Americans were diagnosed with cancer cases (this year). American women have a 63% chance of living at least five years after a cancer diagnosis (for men it’s 66%).
Critical Illness Fact Two
Every 40 seconds someone in the US has a stroke. 600,000 people will experience their first stroke (this year). Ten percent of stroke victims recover almost completely; 25 percent recover with minor impairments; 15 percent die shortly after the stroke.
Critical Illness Fact Three
Every 34 seconds, an American will suffer a heart attack. 785,000 will have a new coronary attack (this year). Where defibrillation is provided within 5 to 7 minutes, the survival rate from sudden cardiac arrest is as high as 30-45 percent.
Critical Illness Fact Four
1.5 million Americans will declare bankruptcy this year. 60 percent are due to medical bills (up 50% over 6 years). 78 percent had health insurance but were impacted by deductibles, co-payments and uncovered expenses + living expenses.
If you are in your 40s, chances are you are just starting to realize you face a risk of a critical illness. You’ve likely heard about or even know someone who has had one. It devastated you at least for a few minutes. Then you moved on with live as we all do. Chances are, they survived. But at what cost?
If you are in your 50s, like I am, you definitely know a friend, a loved one who has had a critical illness. You’re going to the doctor more often for regular physicals. You are eating a little better (or trying to). You are exercising (or intend to). You are doing everything you can to reduce your risk of a critical illness. It may work; but you still think about it more frequently.
If I have struck a nerve, it’s not because you are in the insurance business. It’s because you are human, just like everyone of your clients. They are having the same thoughts. They share the same fears. They want to worry less.
So, the question I’d like you to answer is; “how would surviving a critical illness impact your life … and that of your family?”
What if at least part of the financial worry could be removed from the equation? What if you could receive a tax-free, lump sum cash payment of say $20,000 upon diagnosis? Would that be helpful? What if the cost for that peace-of-mind was $20 a month for a woman age 40; a little more for a man?
I am a firm believer that it is much easier to sell any product once consumers understand the problem and the solution. Unfortunately, that’s not the model adopted by the insurance industry – which tends to look to insurance agents to educate consumers.
Thus, I am not urging you to start selling critical illness insurance quite yet. I believe our new trade association will be successful building a good foundation of consumer awareness upon which sales will grow.
But what I am suggesting is that you get familiar with the concept. Learn more. Start talking to people about it (testing the waters).
And, consider buying the protection yourself. I am indebted to Ken Smith at Assurity Life for sharing this concept with me. Ken suggested that people consider buying critical illness insurance protection equal to two years of mortgage payments. First, imagine the peace of mind of knowing you have the funds to cover your home payment while you recover, miss work, learn a new career? Second, it’s an affordable amount of protection that most can afford. Third, it’s a simple way to get prospects to arrive at a value of desired protection.
If any of this resonates with you, then consider the protection for yourself. There’s no more powerful a way to begin a conversation than by saying “I’ve been worrying about something, so I did this and I think you should consider it too.” Good selling.
Insurance agents interested in learning more about selling and marketing should visit the Association’s Online Learning Center the industry’s leading online educational resource.
The American Association for Critical Illness Insurance is the national non-profit trade organization providing consumers with relevant and current information and supporting the needs of insurance and financial professionals. The Association does not sell insurance products but works with several thousand insurance and financial professionals nationwide.
Insurance agents should visit the Association’s Producer Resource Center to access free information and sales material. Membership is free. Jesse Slome is Executive Director of the Association.
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