Critical Illness Insurance can Be a Key to your Product Portfolio
Although only 2% of insurance producers sell Critical Illness Insurance, it could be one of the most important products that you ever sell to your clients. There are many reasons why you should consider marketing this product to your clients. As health insurance costs have increased, policy holders have chosen higher deductible and co-insurance options in an effort to reduce premiums. Even with the best insurance, a critical illness will generate large out-of-pocket costs and unexpected expenses at the worst possible time. Assume for a moment that your client has had a stroke. While the doctor and hospital bills may be completely covered, other expenses associated with recovery such as occupational therapy, speech therapy or daily assisted care might be limited in coverage or absent altogether. These new expenses alone could quickly become tens of thousands of dollars. In the meantime all of there remaining expenses continue, including food, mortgage, and health insurance premiums. Even for your clients who have long term disability insurance (most don’t) to help offset the lack of income, they usually must face a waiting period of 90 days or longer before benefits begin.
Critical Illness insurance provides a lump sum payment to the insured upon diagnosis of a critical illness. The insured can choose the level of benefit that he or she wishes to purchase. If a 50 year old male non- smoker had chosen a $15 per week benefit and later diagnosed with life-threatening cancer; he would receive a check for $36,962.
Health insurance agents can create multiple sales with this product. As one example a client with a $500 health insurance deductible may choose to raise it to $1000 and use some of premium savings to purchase a Critical Illness policy. The client is very satisfied because they have saved money and gained valuable protection and the agent has added another product from which they will receive commission.
There are many instances in which this product can fill important needs. Both the need and benefits for this policy are easy for clients to understand, which in turn means more sales to you. Please give us a call at (412-892-9014), and we can help get you started.
