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The crucial need for critical illness insurance

Alphonso B. Franco, RHU, RCIS

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Franco shares how to effectively communicate the value of critical illness insurance to clients.

First presented at the 2008 Annual Meeting

Critical illness insurance was created in 1983 to pay people to live as they recovered from a serious illness, such as heart attack, stroke and cancer. A person diagnosed with a specified illness receives up to $2 million in a lump-sum, tax-free payout.

The following ideas have helped me convince others of the need for critical illness insurance. Adjust these techniques as needed to fit your style and practice.

Three important things

I use the following technique with clients who have families. I give them a blank sheet of paper, and for each question, ask them to write down three answers. 

  1. If you had a heart attack yesterday, what are the three most important things you would want to take care of today?
  2. If you had been diagnosed yesterday with a life-threatening cancer, what are the three most important things you would be worried about today?
  3. If you had a stroke last night, what are the three most important things you would want taken care of today?

I remind my prospects that, if they had a stroke last night, they might not be able to talk or write the three most important things they would want taken care of today. Now is the time to take action. 

Do you insure your car before or after a car accident? Do you insure your home before or after a house fire? When you are a victim and a survivor of one of these illnesses, do you need extra worries when you are already dealing with questions of life, death and survival? Let me show you how you could be financially assured for dollars a day in the event of a critical illness.

Needs analysis

To help my clients determine the amount of critical illness insurance they need, I ask several questions:

  1. If you suffered a heart attack, stroke or cancer, would you want your mortgage balance to be paid off? What is your mortgage balance?
  2. In the event of a critical illness, would you want your credit card debt paid in full? What amount would suffice?
  3. In the event of a critical illness, would you want to make sure all your other financial obligations were met? What amount would meet your need? 

If, after hearing you, your clients do not want to be protected, get them to sign a letter acknowledging they have heard the statistics related to the increasing rates of cancer, heart attacks and strokes, yet have chosen not to be covered for them or any other illnesses under the plan you discussed. 

Are you bulletproof?

If not, fill out an application on yourself and your family members today.

Alphonso Franco of Victoria, British Columbia, Canada, is a 26-year MDRT member.

 

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