Life Insurance for Life The Power of Living Benefits.

Life Insurance for LifeThe Power of Living Benefits

Sales Concept:Covering the Healthcare

Insurance Gapw/Living Benefits

In fact, 62% of bankruptcies are due to a critical illness. And 75% of those who filed for bankruptcy had a health insurance policy.¹

Men have a 1 in 2 risk of developing cancer during their lifetime and women have a 1 in 3 risk.² Yet, nearly two-thirds of cancer-related costs are NOT medical.³

We believe that a solid financial foundation includes health insurance and yes, life insurance.

Here’s why…

Health Insurance alone….doesn’t cover all things for all people…

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¹ The American Journal of Medicine, 2009.² Cancer Facts and the War on Cancer. LIMRA, 2007.³ Cancer Facts & Figures 2008. American Cancer Society, 2008.

Our life insurance has “living benefits” – benefits your clients do not have to die to use!

If your clients experience a terminal, chronic or critical illness, they can access their death benefit while living — even if they experience a heart attack, cancer, stroke, ALS, major organ transplant, the inability to perform 2 out of 6 activities of daily living (toileting, transferring, bathing, eating, etc.) and many other ailments.

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Most life insurance policies just pay out at death - However, that is not how our plans work.

Unanticipated events can create a gap in health care coverage, causing your clients to pay more expenses out-of-pocket. How can you help offset these expenses?

Consider supplementing current medical coverage with LIVING BENEFITS.

Major medical issues – such as cancer, heart attack, stroke, and disabilities may be a part of life. These unexpected events occur more often than we expect and can be very costly. Surprisingly, a large percentage of these costs may not be covered by major medical insurance plans.

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HIGH DEDUCTIBLESCO-PAYSLOSS OF INCOME

IDEAL FOR HEALTH AGENTS:

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The Alliance products give reason to revisit with clients who may need additional coverage, gap coverage, or help with high deductibles or co-pays.

Additionally, clients who were previously declined due to pre-existing conditions or for their health histories may have some success with living benefits.

Why Living Benefits make sense as additional health coverage in the event of a

terminal, chronic, or critical illness?

• Ability to use the money as you see fit – whether exploratory or alternative medicine, or simply to cover bills while out of work.

• If you don’t use it before you die, a death benefit will be paid to the beneficiary

• More consumers can afford the hybrid approach rather than additional health coverage

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Death Insurance or Life Insurance for Life?

Most life policies should be called “death” insurance. With the policies we offer clients through WRL, we can help protect families through life’s unpredictable changes – we call it Life Insurance for Life!

DEATHBENEFIT

TERMINALILLNESS

CRITICAL ILLNESS

CHRONICILLNESS

Living Benefits + = One

Solution

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Income Vs Expenses

Your Family’s Income

Your Family’s Expenses

Time off Work

Co-PaysDeductibles

Recovery Time

Additional Income From Living Benefits!!!

DEBT

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Terminal Illness Accelerated Death Benefit Rider

•Terminal illness is determined by a condition resulting from injury or illness which, as determined by a physician, has reduced life expectancy to not more than 12 months (no more than 24 months in TX, GA, IL, MA, and WA).

•This allows the insured to accelerate up to 100% (max of $500,000) of the policy’s death benefit in the event of a terminal illness

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Chronic Illness Accelerated Death Benefit Rider

• Chronically ill is being unable to perform 2 of 6 activities of daily living without assistance from another person or being cognitively impaired.

• 90 day waiting period

• Ability to accelerate up to 2% of death benefit per month

• Max lifetime benefit is 90% or $500,000 - whichever is less

• The policy must be inforce for 2 years before benefits are available

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Bathing

Dressing

Toileting

Eating

Continence

Transferring

Critical Illness Accelerated Death Benefit Rider

•Allows the insured to accelerate his/her death benefit if they are critically ill

•Critical Illness includes diagnosis of cancer, heart attack, stroke, ALS, kidney failure, and major organ transplant

•Max lifetime benefit is 90% or $500,000 whichever is less

•Policy MUST be in force for 30 days prior to claim

•Benefit is paid out in a lump sum and the amount of money you will be able to receive is dependant on the severity of the critical illness.

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EXAMPLE

40 Year Old ManNon-Smoker, Standard Plus

Face Amount: $500,000

Term: 30 Years

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Why is the ABR critical illness rider a valuable benefit to the client?

Experimental treatments, alternative medicine, and international medical care may be not be covered under your clients’ health insurance, but could qualify as

life threatening illnesses under the ABR critical illness rider.

Consider the following example as a possible application for the ABR critical illness rider:

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Prescription medication must be approved by the FDA before it becomes available to U.S. consumers. Typically, the FDA drug review process may take 12 – 30 months.1 If the medication is not approved by the FDA, generally, it will not be covered by health insurance.

According to a Tufts University study, only 8% of experimental cancer drugs ultimately receive FDA approval. 2

However, while these potential breakthrough medications may not be approved in the U.S., they may be available in other countries.

For example, Antigenics, a biotech company, has created a vaccine, Oncophage®, which is designed to stimulate the immune system for patients battling kidney disease. Under their clinical trials, Oncophage® increased the time before the cancer returned by almost two years.3 The FDA has yet to approve the medication. However, it has been approved by the Russian Ministry of Public Health and is available for patients in Russia. In the above example, should your client wish to treat their kidney cancer in Russia, policy benefits could be accelerated under the ABR critical illness rider to cover those medical expenses.

Actual Claim Example

You don’t get into the life insurance business until the life insurance

business gets into you!

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CLAIM EXAMPLE

Critical Illness Claim500,000 Face AmountReceived Lump Sum of $209,646 (90% Accelerated)Still has $50,000 In Force

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THANKS FOR YOUR PARTICIPATION!

Any Questions???

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888-969-9233 Peter Goldfine or Lee [email protected]@anallianceforlife.comwww.anallianceforlife.com