Looking For A CI Tidal Wave? Clear Up Agent Questions First
It is isnt necessarily consumer attitudes that are holding up fast-paced sales of critical illness insurance in the United States–sales that have reached tidal wave proportions in countries like the U.K., Australia and Asia.
Recent industry research and focus groups show that once consumers learn about the product and understand more about their own CI risks they believe CI insurance is a needed product.
Instead, it appears that insurance agents themselves are unsure about CIs benefits, dont know how to sell it, or are concerned about the cost. This article will address those very real agent concerns.
Benefits. In a nutshell, CI meets a very definite rising need.
Every 53 seconds, an American suffers a stroke; every 29 seconds, someone suffers a coronary event. In the U.S., one in two men and one in three women will develop some form of cancer. For many, income disruption in such cases can be significant. For example, over 50% of mortgage foreclosures are linked to sudden CI while only 3% are due to death.
Its long been said that a single person needs only enough life insurance to pay debts and a funeral. But if diagnosed with cancer, how would the single person pay new ancillary costs–for unexpected travel, the costs of an out-of-network specialist, or compensation for a family members time off from work? How would he or she cover the mortgage payment?
Think of the physician or entrepreneur who simply cant buy enough disability income insurance. Or the heart attack patient who goes back to work two weeks later, too soon for DI payments and without the option of time off to de-stress.
What about augmenting key person life insurance? As you know, such insurance pays if a business partner dies but does little if the partner has cancer or a heart attack. Even owners of long term care insurance have coverage needsbecause LTC insurance pays for nursing care as people age, but typically does nothing for a 45-year-old who has a heart attack.
In all these cases, a CI payment would help.