10 Reasons for Selling Cancer Insurance

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10 Reasons for selling Cancer Insurance

1) Needed Coverage: This is the reason that generally creates the most debate. Many agents think of Cancer and CI products as being frivolous products. However, most who have actually experienced the expenses of long term cancer treatment will disagree with that position. Cancer treatment often spans many months and even the best of medical plans do not cover transportation to and from distant care providers, loss of income (often for both husband and wife) special diets, child care, clothing, medical insurance deductibles and coinsurance, etc.

2) Public Awareness: Almost every adult has personal knowledge of someone who has had cancer. Cancer is constantly in the news and fund raisers are taking place every day. This awareness makes the majority of people easy to approach and willing to talk about the financial and emotional problems created when a person is diagnosed with cancer.

3) Broad Market: Coverage is available to almost everyone ages 18 to 80+, without regard to occupation, hobbies, income or any of the other qualifiers that limit the availability of most life and health coverages.

4)Affordability: Many people might not be able afford DI plans or supplemental plans that coverage every possible illness or accident they might experience, most can afford cancer coverage. The premium for basic coverage can be as low as $10-$12 per month for an individual or $20-$25 per family.

5) Ease of Underwriting: Plans are available to anyone who has not had AIDS, HIV, internal cancer or melanoma, often with just a five year look back on those conditions.

6) Ease of Presentation: No need for computers, spread sheets or lengthy proposals. A simple brochure outlining the need for the product and the benefits along with a rate sheet will do just fine.

7) Variety of Plans: Plans can be tailored for individual needs, offering coverage for Cancer Only or Cancer Coverage along with coverage for specified Critical Illnesses such as Heart Attack or Surgery, Stroke, Diabetic Complications, etc. The client can choose from plans that pay a lump sum on diagnosis, pays benefits as expenses are incurred or a pan that combines both lump sum and expense incurred.

8) Pays Directly to Insured: Unless the insured elects to assign the benefits to a third party, all benefits are pay directly to the insured in addition to any other insurance they may have.

9) Commissions: While commission rates have been reduced for many health plans, cancer and CI has street level has remained in the 50% -60% range first year and 10%-15% lifetime renewals, allowing an agent to build a very good ongoing income.

10) Cross Selling: Cancer and CI offer an excellent cross sell opportunity and the agent that is not offering it to his client is leaving money on the table that is available for little more trouble than simply asking for it. They are also leaving an opening for another agent to get into "their" house.
 
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10 Reasons for selling Cancer Insurance

1) Needed Coverage: This is the reason that generally creates the most debate. Many agents think of Cancer and CI products as being frivolous products. However, most who have actually experienced the expenses of long term cancer treatment will disagree with that position. Cancer treatment often spans many months and even the best of medical plans do not cover transportation to and from distant care providers, loss of income (often for both husband and wife) special diets, child care, clothing, medical insurance deductibles and coinsurance, etc.

2) Public Awareness: Almost every adult has personal knowledge of someone who has had cancer. Cancer is constantly in the news and fund raisers are taking place every day. This awareness makes the majority of people easy to approach and willing to talk about the financial and emotional problems created when a person is diagnosed with cancer.

3) Broad Market: Coverage is available to almost everyone ages 18 to 80+, without regard to occupation, hobbies, income or any of the other qualifiers that limit the availability of most life and health coverages.

4)Affordability: Many people might not be able afford DI plans or supplemental plans that coverage every possible illness or accident they might experience, most can afford cancer coverage. The premium for basic coverage can be as low as $10-$12 per month for an individual or $20-$25 per family.

5) Ease of Underwriting: Plans are available to anyone who has not had AIDS, HIV, internal cancer or melanoma, often with just a five year look back on those conditions.

6) Ease of Presentation: No need for computers, spread sheets or lengthy proposals. A simple brochure outlining the need for the product and the benefits along with a rate sheet will do just fine.

7) Variety of Plans: Plans can be tailored for individual needs, offering coverage for Cancer Only or Cancer Coverage along with coverage for specified Critical Illnesses such as Heart Attack or Surgery, Stroke, Diabetic Complications, etc. The client can choose from plans that pay a lump sum on diagnosis, pays benefits as expenses are incurred or a pan that combines both lump sum and expense incurred.

8) Pays Directly to Insured: Unless the insured elects to assign the benefits to a third party, all benefits are pay directly to the insured in addition to any other insurance they may have.

9) Commissions: While commission rates have been reduced for many health plans, cancer and CI has street level has remained in the 50% -60% range first year and 10%-15% lifetime renewals, allowing an agent to build a very good ongoing income.

10) Cross Selling: Cancer and CI offer an excellent cross sell opportunity and the agent that is not offering it to his client is leaving money on the table that is available for little more trouble than simply asking for it. They are also leaving an opening for another agent to get into "their" house.

I agree. Excellent post.

I think a lot of the confusion about cancer insurance comes from the nay-sayers thinking it's instead of health insurance. It's more along the lines of disability insurance than health insurance. It pays for your living expenses not your medical bills. Dave Ramsey always gets this backwards and confuses the issue.

I carry a lot of it on myself.
 
I agree. Excellent post.

I think a lot of the confusion about cancer insurance comes from the nay-sayers thinking it's instead of health insurance. It's more along the lines of disability insurance than health insurance. It pays for your living expenses not your medical bills. Dave Ramsey always gets this backwards and confuses the issue.

I carry a lot of it on myself.
And, it seems I learn of a new income need that I hadn't thought about on a regular basis.

As I have stated in other threads, in my own case it was clothing.. When you drop 75 pounds in a couple of months time, you need new clothes to have some to fit. Now that I have put 50 pounds of that back on, am going through having to buy more.

But, on a really serious note is what happened to our young friend Tina when she had Leukemia. She was laid off from her jobs just a couple of days after her diagnosis. That meant that her health insurance went on COBRA at around $1300 per month. You have cancer, you can't afford to lose your health insurance, you have no job, no income so you can't afford an extra $1300 per month. What do you do? If you are lucky some very generous people like some of those on the Insurance Forum come to the rescue but no one who has been independent all their life wants to accept charity. A cancer plan could have prevented that being a necessity.
 
Cancer and Critical Illness Insurance certainly serves the vast majority of people.
The main benefit is that once accepted, coverage is immediate and extensive.
If one is looking at it as a disability type of insurance, as opposed to medical insurance, I would go along with that assumption.
If one is looking at a way to fund the underlying deductible (even deductibles as high as $50,000) that covers any qualified medical expense, then patented Health Matching Insurance may be for you.
Contributions are $300 a month for the employee, $210 a month for spouses and $180 a month for children (up to 3 kids, maximum).
The spouse and dependents get the same accumulation as the employee - in effect, there is pooling even at the family level.
The benefits build each month, and in month 57, the cash paid in at $300 a month is $17,100 and the total paid for benefits is $50,000.
When one reaches $50,000 (our maximum as of today), her pays only the $60 per month administrative fee, and his total premium is reduced 55%.
Do the math, the simple interest per year accumulation on the contribution is 35% - guaranteed.
The drawback is that coverage builds over time. It is not extensive, from the beginning.
It works like a defined contribution plan, or an HSA, so that when claims are made, your HMI account balance reduces by the amount of the claim.
Initially, for Jan.1, 2015, the product will be available in Texas for self-funded employers of 250 employees or more.
In 2016, we will be available for smaller employers, and in 2017, we plan to be on the Exchanges in the majority of states.
Don Levit,CLU,ChFC
Treasurer
Head of Product Development for National Prosperity Life and Health
 
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