Transcript AIG CriticalCare Plus

AIG CriticalCare Plus
Immediate Payout to
Fill a Critical Gap
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Your Health Insurance Portfolio
Major Medical Insurance
Reimburses for your covered medical
expenses
 Payments made directly to the provider
 Out of pocket costs include: deductibles,
co-pays, co-insurance, out-of-network
costs, experimental treatments
 Premiums usually increase annually with
medical inflation
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Harvard Study on U.S. Individual
Bankruptcies
Over 50% of all bankruptcies are caused
due to a medical/health related crisis
 Over 75% of individual bankrupted by a
medical/health related crisis had medical
insurance at the onset of the bankrupting
illness
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Your Health Insurance Portfolio
Disability Insurance
Majority of working Americans don’t have
protection in the event of a disability
 Plans do not replace all lost earnings,
only a percentage
 Standard elimination period is 90 days
before eligible for benefits
 Many occupations are not eligible for
coverage or have extra high premiums
due to job risk
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Your Health Insurance Portfolio
Long Term Care Insurance
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Reimbursement of home healthcare, assisted
living facility or nursing home expenses
Traditionally a product for the senior market
Must satisfy a waiting period (usually 90 days)
before eligible for benefits
Payments made directly to the provider
Benefit amounts selected may not cover the
total cost of services. Inflation protection can
more than double the cost of coverage.
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CriticalCare Plus
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Pays lump sum benefit upon diagnosis of a
covered critical illness
Benefit not based on cost incurred or time lost
from work
Benefit paid directly to the insured with no
restrictions on its use
Pays in addition to other insurance
With few exceptions all occupations are
eligible for coverage
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CriticalCare Plus
“Make decisions based on health not wealth”
Benefits Provide the Freedom to:
 Choose the best hospitals and physicians
 Elect treatments or services not covered by
traditional health insurance
 Pay mortgage, debts, or outstanding bills
 Seek experimental drugs or therapies
 Modify a home for special needs
 Stay home from work until you are ready to
return
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Why Do I Need
AIG CriticalCare Plus?
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Survival is a Reality
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This year about 1.2 million Americans will
suffer a heart attack, and nearly 60% will
survive
 Over 1.3 million Americans will be diagnosed
with cancer this year, and 64% of them are
expected to survive at least five years
 Each year about 700,000 Americans
experience strokes and 70% survive.
 There are 22+ million Americans alive today
who have survived a heart attack, stroke, or
cancer
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The Cost of Surviving
The costs surrounding a cancer
diagnosis average $146,000 per patient
 According to the American Cancer
Society, over 65% of cancer related
expenses are indirect, not covered by
Traditional Health Insurance
 Over 50% of bankruptcies are medically
related
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Costs not covered by Traditional
Health Insurance
Direct Costs
 Deductibles
 Co-Pays
 Policy Exclusions
(such as
experimental
treatment)
 Out-of-network
medical costs
Indirect Costs
 Lost Income
 Lifestyle changes
 Increased financial
responsibility
 Transportation and
lodging for non-local
treatment
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Life Insurance is a key component
to any financial plan
But What If you Don’t Die?
 Tremendous breakthroughs in medical
technology have vastly improved survival
rates
 Life expectancy has increased by over
30 years in the less than 100 years
 Medicine saves people, but quality
health care does not come cheap
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Do you know anyone who has
survived a stroke, heart attack or
cancer?
Would a lump sum payment of $50,000
or $100,000 at time of diagnosis have
made a positive difference in their life?
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AIG CriticalCare Plus
An innovative product from
AIG American General
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AIG CriticalCare Plus
Pays a lump sum benefit directly to you
upon diagnosis of one of 12 covered
conditions
 Minimum Face Amount: $10,000
 Maximum Face Amount: $500,000
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AIG CriticalCare Plus
12 Covered Conditions:
 Invasive Cancer
 Heart Attack
 Stroke
 Kidney (Renal) Failure
 Coma
 In Situ Cancer (25% up to a $25,000 max)
 Severe Burns
 Loss of Sight, Speech or Hearing
 Paralysis (50% for paraplegia and hemiplegia)
 Major Organ Transplant (25% payable when placed on UNOS
listing)
 Coronary Artery Bypass (25% up to a $50,000 max)
 Loss of Independent Living
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AIG CriticalCare Plus
LOIL - Unique qualifying event to CriticalCare Plus
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Loss of Independent Living is defined as
permanent loss of two or more of the six
activities of daily living, with an elimination
period of 180 days:
Bathing
Dressing
Toileting
Transferring
Continence
Eating
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AIG CriticalCare Plus
Full benefit is payable through age 70
 No reduction at age 65
 After age 70; Loss of Independent Living
remains the sole covered condition with
full benefits payable for life
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AIG CriticalCare Plus
Other key product features include:
 Preventive Care Benefit
 Return of Premium
 Best Doctors Endorsement
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Preventive Care Benefit
Pays up to $50 for health screening tests during each calendar year
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Blood test for
triglycerides
 Breast ultrasound
 Chest X-Ray
 Colonoscopy
 Electrocardiogram
 Fasting blood glucose
 Flexible sigmoidoscopy
 Hemocult stool analysis
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Mammography
Pap test
PSA (blood test for
prostate cancer)
Serum cholesterol to
determine HDL and LDL
Serum protein
electrophoresis (blood
test for myeloma
Stress test
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Return of Premium
Return 100% of all premiums paid upon
death of the insured, less any benefits
paid to the named beneficiary
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Best Doctors Endorsement
Access to a national network of over
50,000 doctors, who are personally
nominated by their peers and recognized
as a specialist in their respective field
 Access through an interactive website
 Access through doctor to doctor
consultation
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Optional Benefits
Benefit Extension Rider
 Medical Personnel HIV Benefit
 Accidental Death and Dismemberment
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Benefit Extension Rider
Allows the policy to continue after the
maximum policy benefit has been paid
 Additional protection for two types of
subsequent diagnosis: continuance and
recurrence
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Benefit Extension Rider (cont’d)
Continuance
 Pays up to 3X the original benefit
amount not to exceed $500,000
 Will pay the full benefit for a diagnosis
different from what was previously paid
 Subsequent diagnosis must occur at
least 180 days after the previous
diagnosis
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Benefit Extension Rider (cont’d)
Recurrence
 Will pay 50% of the policy maximum
benefit for second diagnosis of the same
illness
 Must be two years treatment-free
following the original dianosis
Note:
Treatment does not include maintenance medications and follow-up visits
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Medical Personnel HIV Benefit
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Will pay the policy maximum benefit if
the insured is diagnosed with HIV as a
result of an accident, which occurred
during the normal occupational duties
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Accidental Death and
Dismemberment
Units of coverage are $25,000 each
 Six unit maximum
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AIG CriticalCare Plus
In addition to the Lifetime Plan,
CriticalCarePlus is also available as:
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10 Year Term
 15 Year Term
 20 Year Term
 30 Year Term
A more affordable choice only available
through AIG American General
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AIG CriticalCare Plus –
10,15, 20, and 30 year term plans
When would I purchase term coverage?
 To provide coverage until the children
graduate college
 To provide coverage for the balance of the
mortgage
 To provide coverage for the period of an
outstanding loan or any other limited financial
obligation
 Alternate of choice
 Succession Planning
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AIG CriticalCare Plus
Issue Age
 Age 18-64 for all nonsmoker plans except the
10 year term plan
 Age 18-59 for the 10
year term plan and all
smoker plans
Rating Structure
 Sex Distinct Rates
 Tobacco or Non-tobacco
 Accept or Reject – no
premium rating
 5 year age bands
 3 Premium Bands:
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$10,000 - $50,000
$50,001 - $100,000
$100,001 - $500,000
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AIG CriticalCare Plus
Benefit Amounts
 Minimum - $10,000
 Maximum - $500,000 (not to exceed 5x earned income)
Spouse Coverage
 Up to 5x earned income not to exceed the benefit for the primary
insured
 If not working, benefit amount is limited to 50% of the working
spouse limit up to a maximum of $250,000
Child Coverage
 $50,000 maximum, not to exceed the primary insured's benefit
amount
 The premium covers all children for the same rate
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AIG CriticalCare Plus
Underwriting
 Face Amounts up to $100,000
Non-medical underwriting
 Fully completed application
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AIG CriticalCare Plus
Underwriting
 Face Amounts $100,001 and greater
Paramedical exam to include height/weight,
blood pressure and pulse
 Full blood profile and urinalysis
 Ages 51-64, EKG
 $250,000 to $500,000 will require personal
history interviews for applicants age 41-64
and APS in all cases
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AIG CriticalCare Plus
Underwriting cont’d
 The underwriting section of AIG
CriticalCare Plus producer guide will
provide additional details on underwriting
guidelines and practices for this product.
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Who Are Prospects for AIG
CriticalCare Plus?
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AIG CriticalCare Plus - Prospects
Who?
Individuals in blue collar
occupations:
 Firefighters
 Police officers
 Welders
 Long haul truckers
 Janitors
 Waiters/Waitresses
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Why?
May be ineligible for
Disability Insurance
If eligible for Disability
Insurance, premiums
may be expensive
Can provide protection if
loss of earnings is
caused by a covered
critical illness
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AIG CriticalCare Plus - Prospects
Who?
High Wage Earning
Professionals
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Physicians
Attorneys
Corporate Executives
Business Owners
Why?
 Disability Insurance
replacement rates are
less than 50% with a
monthly maximum of
$10,000 - $15,000
 Disability benefits may
be inadequate to cover
monthly living expenses
Can provide additional
benefits if loss of
earnings is caused by a
covered critical illness
For agent use only-not for public
AIG CriticalCare Plus - Prospects
Who?
Small Business Owners
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Why?
May be ineligible for Disability
Insurance until the business
is established
Need to replace business
expenses in addition to
personal income in the event
of a disability
Lump sum payment can be
used to keep the business
operational during recovery
from the critical illness
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AIG CriticalCare Plus - Prospects
Who?
Individuals with certain
medical conditions
 Back problems
 Knee problems
 Situational depression
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Why?
May be ineligible for
Disability Insurance, but
can qualify for Critical
Illness Protection
May be the only
protection available to
provide benefits in the
event of a loss of
earnings caused by a
covered critical illness
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AIG CriticalCare Plus - Prospects
Who?
Stay-at-home moms
Why?
 Ineligible for Disability
Insurance
 Additional expenses in
unable to take care of
the children due to
critical illness
 Working spouse may
need to take time off
from work to help with
the children and care for
the wife (Family Medical
Leave Act)
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AIG CriticalCare Plus - Prospects
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Who?
Individuals with high
deductible major medical
plans or limited medical plans
such as scheduled plans or
mini-med plans
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Why?
Critical Illness insurance can
cover the deductibles, coinsurance, and other out-ofpocket expenses in the health
insurance plan
Critical Illness packaged with
a high deductible may be
more affordable than a plan
with a low deductible
Will allow you to seek
treatment not covered by
your medical
plan…experimental in/or outof-network
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AIG CriticalCare Plus - Prospects
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Who?
Clients with life
insurance coverage
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Why?
Client already
understands the need
for financial protection
Financially secure in the
event of death, but what
is your client survives a
heart attack, stroke or
cancer
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AIG CriticalCare Plus - Prospects
Who?
 Single working parents
Why?
 Additional expenses
associated with caring
for the children which
would not be covered by
disability insurance
 Unlikely to have
sufficient savings to
buffer against increases
in expenses
 Lump sum payment will
help alleviate stress they
already face as a single
parent
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For more info contact…
Bob Clancy, Regional Sales Manager
Western United States
Specialty Markets Group
8400 E. Prentice Ave Suite 500
Greenwood Village, Colorado 80111
303-750-3545/1-888-473-3031
[email protected]
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