WorldWide Health Benefits
|Realities of Critical Illness||Critical Illness Insurance||Product Overview||Worldwide Major Market Success||US Market Opportunity|
a father of two and the Chief Financial Officer of a national software
company was 43 when a mass on the side of his brain was found in December
of 1998. After a number of
visits to his local doctor, Jarod and his wife, Elizabeth, made the
journey to see a specialist at Mass General Hospital in Boston.
After numerous tests, Jarod’s worst fears were realized; he had a
cancerous cyst on his brain known as glioblastoma.
Prognosis for recovery was slim; doctor’s said the combination of
chemotherapy and radiation treatment would extend his life by only 6
Jarod, not ready to give up, began to seek
alternative solutions and found a medical college in California offering
an experimental gene therapy treatment; the results were encouraging.
As Jarod’s current medical insurance did not cover experimental
treatments, he was faced with a major financial decision.
To cover the $600,000 cost, Jarod would be forced to liquidate his
life savings and his retirement funds and take a second mortgage on their
four-bedroom home. Jarod
decided to fight the cancer. Jarod
and Elizabeth left their two young children with his wife’s family in
upstate New York, and headed cross-country to Los Angeles to begin stage 1
of what would turn out to be a 5-stage treatment process.
Jarod now faced additional expenses associated with travel back and
forth between Massachusetts and California and continued lost wages.
Like many other victims of serious illnesses, Jarod discovered
he did not qualify for his company’s long-term disability benefit and
discussion with the insurance company failed to convince them to offer
coverage. In total, the
financial burden of Jarod’s medical ordeal cost over $750,000.
good news is that Jarod continues his follow-up treatments in California
(over 4 years since the initial treatment).
Unfortunately, Jarod was forced to sell his home to pay off debt
created by the medical bills, travel costs and lost wages, and relocate
his family to a modest residence. He
is now working to rebuild his families’ financial position from a new
job in California with only 10 years to retirement.
“The probability of incurring a critical illness is
more than twice as great as dying from any cause before age 65” (1997
Employee Benefits New and Views Magazine)
Illness Insurance serves as a LIVING BENEFIT that provides a lump
sum payment to survivors of a life-threatening illness or disease.
This living benefit can help the insured to:
Critical Illness Insurance provides lump sum benefits to insureds, paid upon first diagnosis of a covered critical illness.
The lump sum benefit options range from $50,000 to $5,000,000.
Our Critical Illness Insurance Product includes the following
Many costs associated with
critical illness are not covered by traditional health or disability
insurance. Some of these expenses include:
There is a waiting period of thirty (30) days
after the insured's coverage effective date before any conditions are
covered. A first diagnosis of a critical illness less than 30 days after
the policy's effective date is covered only by return of the premium paid.
In addition, for the full cancer benefit to be payable, the policy must be
in force for 90 days before the first diagnosis.
The eligible ages are 20 to 65; benefits reduce 50% at age 65 and the policy lasts until age 100 or when the maximum benefit amount is paid for any covered condition.
Critical Illness product class has been successfully sold in Canada,
Europe and Japan. While each
of these markets have their own unique political, economic and social
attributes that are dissimilar from each other, they each have a common
thread of success that illustrate the standards of execution that enable
The United Kingdom
the successful launch in the mid-1980’s of Critical Illness Insurance
(CI) in South Africa, the product first became available in a major
market: The United Kingdom.
Abbey Life in the UK offered the first CI policy in 1987. Within
six years, over 50 carriers offered CI as part of their product portfolio.
CI policies in the UK are mortgage related; the benefits are used to repay
mortgage debt if the insured is diagnosed with a covered illness. This is a major product design difference that distinguishes
CI products in UK from those in other countries, where the purpose of the
benefits are left entirely to the discretion of the policy owner.
Canadian insurers began offering Critical
Illness Insurance policies in 1996. In 1996 a LIMRA survey found only six
Canadian companies selling CI products. As of 2001, nearly 30 insurance
companies offer CI in the Canadian Market. Nearly all-Canadian carriers
offer basic products covering at least cancer, heart attack, stroke, renal
failure, and major organ transplant, however, 98% of Canadian CI policies
cover six or more diseases or conditions.
The primary differentiator of Canadian CI products is lengthy
premium guarantees, which are not found in any other country’s products.
In an article published in Money Marketing in June 2002; however, a
reinsurer that is very active in the Canadian market announced that it
will no longer reinsure products with guarantees exceeding five years.
This could bring about significant change in the design of future
Canadian CI products.
its annual survey of Canadian CI sales for 2001, LIMRA reports:
The Canadian market
continues to show strong growth and several well known and respected
insurance carriers have entered the Canadian CI market in the past 18
months. The national health
system in Canada, which sometimes limits its citizen’s access to
specialists or innovative treatment options, makes it an attractive market
for CI products.
According to market research and
surveys published by international reinsurers in 2000 and 2001, 500,000 CI
policies were sold in Japan in the first six-month following introduction
of the product in that country. Over
7 million policies have been sold in Japan to date.
CI products began to appear in Southeast Asia in the late
1980’s. 230,000 policies were sold in this region (including Malaysia,
Singapore, Hong Kong, and Taiwan) in 1993.
Over 1 million policies have been sold each year since 1996.
In Australia, CI premium accounted for
nearly 10% of all annual new business premiums by 1998.
There are significant differences in product design in the
Asian/Pacific Rim market when compared to CI policies sold in the US, UK,
and Canadian markets. In all countries in the region, with the exception
of Japan, products tend to cover 30 or more conditions and are often
tailored for certain consumer groups.
In Hong Kong, for example, “Lady Products” that focus on
female-specific conditions such as breast and ovarian cancers and
complications of pregnancy are very popular.
In Japan, however, where the product has seen the dramatic growth
in sales and popularity, virtually all policies cover only cancer, heart
attack, and stroke.
High Net Worth Individuals
In addition to the opportunities listed for executives :
Business Owners & Professional Partnerships
In addition to the opportunities listed for executives :