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March 24, 2002 at 07:00 PM
Unlocking The Market’s Vast Potential
By
Critical illness insurance is built on a great concept–provide cash to spend any way you want to a person diagnosed with heart attack, cancer, stroke.
But is there a real need for this protection? After all, many insurance “prospects” already have life, disability and medical insurance. So why should these people need additional money during recovery from a serious illness?
The fact is that increasing numbers of people are completely uninsured for medical expenses. In the face of medical costs trending upward in excess of 20% annually and rate increases to medical benefits of 40% and more, many employers are being forced to respond by making changes to their employees medical plans–adding or increasing deductibles and co-pays to mitigate the cost increase.
We are all aware of the statistics that remind us of the alarming frequency of heart attack, cancer and stroke, even among young people. Add to the equation the fact that, in addition to increasing out-of-pocket medical expenses, people face many non-medical uninsurable costs when serious illness strikes.
Therefore, there is a real need for this type of protection. But who is a good prospect, and why would they buy? The prospect list is long:
Anyone with debt or financial obligations.
Fact: Nearly 50% of mortgage foreclosures in the U.S. are the result of sickness, while only 3% are due to death of one of the borrowers. Yet mortgage life insurance or term life to cover mortgage obligations sells well. As you can see, CI insurance positions easily as a way to take the pressure off “paying the bills” during recovery.
Singles who are often poor prospects for life insurance.
In fact, singles are perfect candidates for CI insurance protection. As a living benefit, it works well for singles because “its for me–and Ill appreciate the choices it allows me to make.” Single parents especially could benefit. If stricken with a critical illness while lacking extra funds, such parents could be ruined financially by medical bills not covered by insurance, existing bills that must be paid, and childcare costs during recovery. Disability and health benefits alone wont do it.
Anyone whose occupation makes him or her a poor disability insurance risk.
