Carriers and agents are reaping the rewards of a growing critical illness insurance market. According to Gen Re, CI has seen a steady growth 9 of the last 10 years. 2014 saw a 22 percent increase in issued policies / certificates and 15 percent growth in premium. New carriers are entering the market spurred in large part by agent demand. Are you looking for a new product to expand your practice? Critical illness may be the answer for you.
You are already a proponent of paycheck protection, so adding critical illness insurance to your practice is a logical next step. Both DI and CI share a similar market; working clients interested in financial stability. Underwriting factors are very similar. And just as you rely on DIS for your disability and long-term care business you can count on us for the same level of service, top carriers, and competitive products for critical illness insurance.
Brief product refresher
Critical illness insurance pays a benefit as a lump-sum payment following the diagnosis of a covered illness. Benefit amounts typically run between $5,000 and $50,000. The benefit is paid directly to the insured. In the event of a disabling illness, the CI benefit can provide some much-needed cash for DI policyholders with an elimination period to satisfy. It can also help cover costly co-pays and health insurance deductibles.
The product continues to evolve as it gains popularity. The average policy offers 19 eligibility triggers up from 13 just last year.
Critical illness fills the gap
A recent Met Life study estimated $35,500 to be the cost of convalescing from a critical illness, often due to to lost income. The CI benefit can be used for medical and non-medical expenses. The most common medical uses are to cover co-pays, out-of-network doctor visits, and prescriptions. The top three non-medical uses are travel, modification to the home or auto, or home maintenance. Last year critical illness carriers paid more than $183M in claims.
The disability insurance benefit amount is often determined by reviewing predictable living expenses. Additional medical expenses resulting from an illness are difficult to anticipate and even more difficult to estimate. Critical illness insurance offers protection for the unforeseeable.
Many consumers are unsure about exactly what critical illness insurance is and what it covers. It is often confused with health insurance, disability insurance, or a federal program. When you suggest CI, expect to educate the client about how it supplements their disability insurance, its affordability, and its role as the finishing piece of the income protection puzzle.
October is Critical Illness Awareness Month. We thought it critical to make you aware of the natural fit for CI in your DI practice. Talk to your DIS representative to learn more the critical illness product, features, and benefits. When you need a quote for disability insurance or long-term care insurance, request a companion critical illness quote. It can be a great combination for you and your client.
Want to know more about critical illness insurance? Download this guide.