Cross-Selling Cancer, Heart Attack and Stroke, and Critical Illness Insurance
Next up on our ancillary list, Cancer, Heart Attack and Stroke, and critical illness plans.
These types of plans provide either a lump-sum payment or a graded benefit when a pre-determined event occurs. These events are listed in each individual policy and can include heart attack, coma, life-threatening cancer, renal failure, stroke, and other critical health issues.
The feature factor on these plans is that the money goes straight to your client, too, not to your client’s doctors or providers.
If they need to use the money to pay for transportation to a facility for treatment, they can do that. If your client needs to buy clothing because they lost weight through chemo, they have that option. And if they need help paying the bills while they’re recovering, the money is theirs to use as they see fit. Ideal clients for this type of product can be nearly anyone in your book of business.
According to the American Cancer Society, about half of all men and one-third of all women will develop cancer at some point in their lifetime.
And according to American Heart Association and American Stroke Association estimates, each year approximately 805,000 heart attacks occur, and about 795,000 individuals have a stroke.
Clients who mention they have a family history of these diseases are also ideal candidates, because the conditions may have been passed down to them genetically. And don’t forget as you’re fact-finding and talking with your clients, there are lifestyle choices that can put a person at higher risk for developing critical illnesses, like tobacco use or obesity to name a few.
Critical illness policies can be paired with either Original Medicare, Medicare Advantage, or even health insurance for clients who are under the age of 65. Pitching these types of plans can be as simple as bringing them into the conversation.
You might be surprised to hear your client say that they didn’t know plans like these existed. Be sure to have literature on hand, and if possible, schedule a future appointment to talk about it.
If your client does know about cancer or critical illness policies, ask them if they’ve considered one before. Be prepared to counter their objections, though. Your clients may claim that these kinds of policy “aren’t worth it” or that coverage is “too expensive.” To counter these objections, showcase the value of critical illness by getting into plan specifics.
For example, if your client has a traditional Medicare plan, they’re responsible for 20 percent of the cost of outpatient cancer treatments. Radiation and chemotherapy are expensive treatments.
If you’re pitching to a Medicare Advantage client, consider those who are in a zero-dollar premium plan, and might have extra money available for a premium that would save them out-of-pocket should they get seriously ill.
And regardless of the type of Medicare plan, gently remind your clients that most primary health insurances won’t cover experimental treatments.
You can also illustrate the cost of cancer treatment overall to show how affordable coverage is in comparison.
For example, current market value places policy premiums between $25 to $50 dollars a month for lump sum benefits that range from $2,500 to $100,000. The lifetime cost of cancer can be at least as high as $282,000!
The cross-sale here relies on the value of the product as well as peace of mind should the worst occur. The better you highlight that value to your client, the more likely you’ll end up with a successful cross-sale.