National Underwriter;
Life &
health/financial serv -
March 25, 2002 00:00
Shiela Matheson
National Underwriter
Erlanger
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.
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