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American International Group, Inc

American International Group, Inc. Dave Kerman Senior Marketing Representative. CRITICAL ILLNESS. Overcoming Objections. Definition of Objection. Expression/feeling of opposition or disapproval; adverse reaction

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American International Group, Inc

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  1. American International Group, Inc Dave Kerman Senior Marketing Representative

  2. CRITICAL ILLNESS Overcoming Objections

  3. Definition of Objection Expression/feeling of opposition or disapproval; adverse reaction Reality: in our business it’s an excuse not to buy, or make a decision to proceed

  4. 2 Question CI Sales Opener • Imagine that you were just diagnosed with cancer…….. • What are your immediate 3 biggest concerns? • Would cash HELP?

  5. 5 Question CI Sales Opener • Who do you know that had…c, ha or s? • Did they plan on it? • Was there unplanned emotional financial stress on the household or business? • Would CASH have HELPED? • H ow?

  6. Remind your clients of this…. • A critical illness can’t be predicted or controlled BUT……… • It can be FINANCIALLY INSURED!

  7. Statistics--Cancer • 139,900 new cases this year • Based on current incidence rates, 41% of Canadian men will develop cancer, and 38% of woman will get the disease. • Most common breast cancer, prostate, colorectal and lung. • 1 in 4.3 women; 1 in 3.6 men will die from cancer

  8. Statistics--Cancer • Five year survival rates for most cancers are improving steadily • Mortality rate for males has fallen 12% since 1988; for women, if lung cancer is excluded, 21% decline in mortality

  9. Statistics--Cancer • Mortality rates for breast cancer have steadily declined since 1986 • Mortality rates for colorectal cancer have decreased significantly since 1980’s • Thyroid cancer is the most rapidly increasing cancer for both men and women

  10. Statistics--Heart Attack • 70,OOO in Canada each year • 50% chance of repeat heart attacks • 13% increase in recurrent heart attacks since 1984 (stress?) • 39% of victims rated their health as fair/poor following their recovery

  11. Women have a 50% chance of dying from a first heart attack, men only 30% Upon first time survivors 38% women will die within one year vs. 25% of men 46% of women become disabled, compared to 22% of men Statistics--Heart Attack

  12. Statistics--Stroke • 50,000 new stroke victims per year • 75% survive the initial event • 300,000 Canadian living with stroke effects • Over 55 risk stroke doubles in 10 yrs • Stroke victim has 20% chance of having another stroke within 2 years

  13. Statistics--Stroke • Average cost acute care $27,500/stroke • Out of 100 stroke victims • 20 die • 50 return home • 10 enter re-hab program • 15 need long term care

  14. Product positioning-(developed by a Doctor) Know your audience Sales Process--Identify the Problem Create the Need Appeal to Logic Propose a Solution Keep it Simple! How to avoid objections

  15. Women Talk about breast, cervical, uteran, and thyroid cancer Heart attacks disable 46% of women 60% of stroke victims in Canada this year are women (30,000) Who relies on you!! Know your audience!

  16. Men Talk about prostate, lung and thyroid cancer Heart attack risk/stroke (stress?) Multiple Sclerosis/Motor Neuron Disease Who relies on you? Know your audience!

  17. Most common CI objections • I don’t think I need it • It’s too expensive • I have disability insurance • What if I don’t get critically ill? • Health care system will look after me • I have it as part of my mortgage insurance • I want to talk it over with my accountant

  18. Overcoming Objections #1 • I DON’T THINK I NEED IT! • Do you know anyone who’s had cancer, heart attack or a stroke? • Emotional/Financial Impact? • Would CASH have helped?

  19. Overcoming Objections • Do you have enough savings to maintain your lifestyle for the next year if you couldn’t work, or wanted to seek alternative treatment in the United States? • Did you know that the wait for radiation or chemotherapy treatment in Ontario is anywhere between 8 and 12 weeks?

  20. Overcoming Objectives #2 • IT’S TOO EXPENSIVE! • Mortality vs. Morbidity • WHY (the insurance companies know)

  21. EXPENSIVE? MORBIDITY vs MORTALITY( T 10 vs T 10 CI ) Male 40 NS $200,000 Life CI AIG $259 $900 Maritime $266 $1049 RBC $280 $992 MORBIDITY COSTS ARE 350-400% HIGHER ectw

  22. Overcoming Objections • In times of financial need people use their savings to help them pay their bills • Do you know the real impact of using retirement savings to help get you through a critical illness??

  23. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Retirement Planning Interruption $793,196 $406,228 Client withdraws $100,000 *Assuming client makes $5000 annual deposits from age 29 to 49, at a rate of return of 7%.

  24. Overcoming Objections • Can you afford not to have this coverage? • $50 a month could have solved a $400,000 problem! • Lets find a way by RE-ALLOCATING DOLLARS you’re already spending.

  25. The .30 to .50 BPS Solution • Scenario: Client (M NS 35) is investing $12,000 annually in a non registered portfolio. • You suggest a wealth preservation strategy implementing T 75 CI with a return of premium option at expiry.

  26. The .30 to .50 BPS Solution • Scenario: Instead of investing $12,000 annually, client now invests $10,795 (T 75 CI with ROP at expiry costs $1205 per year) • What impact does this have on his retirement savings strategy at age 69?

  27. The .30 to .50 BPS Solution • Scenario • $12,000 invested annually at 6% to age 75 would grow to $1,049,460 • $10, 795 invested annually at 6% to age 75 would accumulate to $944,077

  28. The .30 to .50 BPS Solution • Shortfall of $105,383 at age 75 by using $1,205 to provide CI coverage for 40 years • However, ROP credit at age 75 returns $48,200 reducing shortfall to $57,183

  29. The .30 to .50 BPS Solution • This shortfall could be eliminated by earning client an extra .42 bps a year for the duration of coverage • Re-allocation of dollars is preserving clients wealth accumulation goals in the event of a life threatening illness!

  30. Overcoming Objections #3 • I HAVE A DISABILITY POLICY, WHICH YOU SOLD ME, I THOUGHT THAT WOULD COVER ME? • ISN’T THAT WHAT YOU TOLD ME?

  31. Overcoming Objections • Disability Insurance • MONTHLY income only • BENEFITS capped (50-70%) • CONTINUAL claims process • DEFINITION of disability??

  32. Overcoming Objections • FACT: HEART ATTACKS/RECOVERY • Hospital Recovery • Male 45 7 days 4-6 weeks • Female 45 8-11 days 6-11 weeks

  33. Overcoming Objections • Standard 90 day wait means DI policy • WON’T PAY ANY BENEFITS

  34. Overcoming Objections • Think of DI as the brakes on your car • Think of CI as the airbag…… • EXTRA PROTECTION FOR THE BIG EVENT

  35. Overcoming Objections #4 • WHAT IF I DON’T GET CRITICALLY ILL, AND DON’T USE THE POLICY?

  36. Most CI plans will refund all Of your premiums back to you You CAN’T lose, you collect If you get a covered illness, or get Your money back A WIN-WIN SITUATION Overcoming Objections

  37. RATE OF RETURN COMPARISON TO OUTSIDE INVESTMENT • Female, Age 40, Non-smoker • Needs $100,000 • Premium is $1,041 per year • Eligible to receive $10,410 at age 50 • or • $20,820 at age 60

  38. Better than most long term investments! RATE OF RETURN COMPARISON TO OUTSIDE INVESTMENT • Better than any conventional investment... • If you were to claim for a critical illness, here is what your return on investment rate would need to be to match your critical illness policy. Year Rate of Return Required Claim in year 5 121.9% Claim in year 10 39.7% Claim in year 15 21.2% Claim in year 20 13.4% Claim in year 25 9.3% Claim in year 30 6.7%

  39. I ALREADY HAVE CRITICAL ILLNESS COVERAGE ON MY MORTGAGE INSURANCE THROUGH THE BANK Overcoming Objections #5

  40. Overcoming Objections • DID THEY SEE YOU COMING! • Here’s what the bank likely forgot to tell you!!!

  41. Overcoming Objections • The bank is the beneficiary • The bank will charge the same premium, even as you pay down your mortgage • The bank can change or cancel the plan • The bank will cancel your coverage if you move your mortgage to another lender • The bank will UNDERWRITE your coverage at CLAIM TIME! • The bank provides only basic (3-6) conditions

  42. Overcoming Objections #6 • I DON’T THINK I NEED THIS, THE HEALTH CARE SYSTEM WILL LOOK AFTER ME.

  43. Overcoming Objections • From the Fraser Report (Fraser Institute-August 2002) • “comparative evidence is the Canadian health care model is inferior to others that are in place in the OECD. It produces inferior access to physicians and technology, longer waiting times, is less successful in preventing deaths from preventable causes, and costs more than any other comparable system”

  44. Overcoming Objections • In Canada we treat Cancer to prolong life, in the U.S. they treat Cancer to cure it! Wouldn’t you like the ability to choose your care and treatment?

  45. Overcoming Objections • Have you seen reports on television where chronically/critically ill people are on gurney’s in hospital hallways? Would you want that to be you? • Government cutbacks are forcing hospital closures, there’s fewer nurses, outdated medical equipment and fewer doctors.

  46. Overcoming Objections • Our health care system doesn’t cover your out of pocket expenses…… • Travel costs • Accommodation costs • Parking • 24 hour nursing • Home renovations • Car renovations

  47. Overcoming Objections • Our health care system is one of the best in the world, but it’s about having choices and options…critical illness coverage will allow you that….. • Critical care assist benefits will give you access to 3rd party medical assessments, alternative treatments and medical facilities

  48. Top 10 USA Cancer Centres • Anderson Cancer Centre (Texas) • Memorial Sloan-Kettering Centre (NY) • Johns Hopkins Hospital (Maryland) • Dana-Farber Cancer Institute (Boston) • Mayo Clinic (Rochester, NY) • University of Chicago Hospitals • Duke University (North Carolina) • UCLA Medical Centre (California) • University of Michigan Medical Centre • H. Lee Moffitt Cancer Centre (Florida) • HERE’S HOW MANY TAKE CANADIAN MONEY AT PAR………

  49. Top 10 USA Cancer Centres • NONE!

  50. I WOULD LIKE TO TALK THIS OVER WITH MY ACCOUNTANT. Overcoming Objections #7

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