Boomers Seen As Good Market For Critical Illness Insurance
By Linda Koco
When Jim Nader speaks with baby boomers about critical illness insurance, it first strikes many of them as a new concept.
But once they learn about it and see what it does, it excites them, says the Los Angeles, Calif., agent with Mutual of Omaha. When that happens, CI sells better than life insurance and disability insurance.
Brent Affolter, a Willoughby, Ohio, sales manager with Western-Southern Financial Group, has the same experience.
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Boomers have not heard as much about CI insurance as one might expect, given the amount of CI development in the industry, he says.
But when we propose it, the boomers often say, tell us more about it.
The older boomers, age 50 and up, are particularly interested, Affolter says.
They see how they can use CI insurance to help them get back on their feet after a disability, he explains. Thats important, he says, because disability is a key concern for middle-aged people.
The CI sale is not made in lieu of disability insurance, he stresses. Rather, his firm positions it as a supplement to disability insurance.
Do boomers see CI as something they just cant afford, given their house payments, rising health insurance costs, college funding costs and other financial pressures?
The subject does comes up, agree both CI insurance marketers.
But, says Nader, once clients see all that a CI policy can do, the objections start to shrink. For example, the policy he sells offers 3 basic ways for benefits to be paid: a lump sum to the insured who suffers a covered critical illness and survives it; the full CI benefit to the beneficiary if the insured dies from the critical illness rather than survives it; or all paid-in premiums to the beneficiary if the insured dies from some other cause (not a covered critical illness).
Additionally, people can add an accidental death and dismemberment rider to the policy, if they want, Nader says.
Seeing all the ways this policy pays benefits helps boomers see the cost in perspective, he says, adding so does showing the client the different ways to use the benefitssuch as to pay hospital bills not covered by medical insurance, to supplement ones disability insurance, etc.
Affolter, with Western-Southern, says his office suggests setting up the CI so its face amount equals 3 to 6 months of income.
That would be good for a boomer who is working and who intends to use the CI policy to supplement existing disability insurance if he or she ever suffers a critical illness, he says. The benefit would be enough to help many CI survivors get back on their feet and go from there.