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Critical Illness Insurance discussion with the ABC Co. (template). The Medical Profession has Created an Insurance Dilemma. Not designed by an actuary. Not designed by an insurance company. Dr. Marius Barnard.

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Critical Illness Insurancediscussion with theABC Co.(template)

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The Medical Profession has Created an Insurance Dilemma

  • Not designed by an actuary.

  • Not designed by an insurance company.

  • Dr. Marius Barnard.

  • “I was agonized because I could see my patients dying financially after diagnosis and treatment of a critical illness. I went to life insurance agencies and encouraged them to develop a policy that does not pay on the diagnosis of death or disability, but pays if people survive - from the diagnosis of a critical illness.”

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What is Critical Illness Insurance?

1. A lump sum cash benefit (monetary benefit).

2. A payout 30 days after the diagnosis and survival of one of the insured critical illnesses.

3. Non-monetary benefits:

A second opinion

Search for Best Doctors

Identify and arrange access to top medical experts

Emotional support and coping strategies

Help coping with everyday activities

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Cancer (life threatening)

Heart Attack


Coronary Artery Bypass Surgery




Loss of Speech


see specimen policy for exact definitions




Major Organ Transplant

Severe Burns

Renal Failure

Motor Neuron Disease

Occupational HIV Infection

Benign Brain Tumor

C.I., A Living Benefit.

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Critical Illness Statistics

Cancer (Source: The Canadian Cancer Society)

  • 1 in 3 Canadians will contract some form of life threatening cancer.

  • 125,000new cancer cases are diagnosed annually.

  • Incidence has increased 29% since 1970.

  • 67% of current cancer treatment costs are unfunded.

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Critical Illness Statistics

Heart Attack (Source: Heart and Stroke Foundation)

  • 1 in 4 Canadians will contract heart disease.

  • 75,000 Canadian suffer heart attacks each year.

  • 1 in 2 heart attack victims are under the age of 65.

  • 90-95% of heart attack victims survive the first attack.

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Critical Illness Statistics

Stroke (Source: Heart and Stroke Foundation)

  • 1 in 20 run the risk of having a stroke before age 70.

  • 50,000 Canadians suffer a stroke each year.

  • 1 in 3 stroke victims are under the age of 65.

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Critical Illness Statistics

That adds up to 250,000 Canadians, each year, suffering from one of the “big three” (Heart Attack, Stroke and Cancer)

Accounts for almost 1%, each year, of the Canadian population...

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  • CI helps refocus benefits back to providing for the most catastrophic events.

  • Provides the opportunity to create a more “caring parent” environment and reduces the need to “pass the hat” around the office to help an employee dealing with a critical illness.

  • Average person* starting out in the workforce has a:

    • 2.1% chance of dying prior to age 65*

    • 20.1% chance of having a critical illness diagnosis prior to age 65*

    • It may not be a question of “ if ”, but rather “ when ”.

  • Assuming average age of someone starting out in the workforce at age 25.

  • 1989-91 Experience report by group size, Canadian Institute of Actuaries, Sept. 1999.

  • M&G; critical illnesses include: cancer, heart attack, stroke, kidney failure, multiple sclerosis, blindness and deafness.

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1. Medical Costs

Alternative treatment

Experimental drugs

Out of province treatment

Nursing care

2. Non - Medical Costs

Leave of absence for insured or spouse

Home and/or vehicle adaptation


Workstyle changes

Extraordinary Costs of a Critical Illness

3. Reduce Financial Obligations

  • Debt/mortgage repayment

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Personal Impact

  • Psychological impact of dealing with a life threatening diagnosis

  • Fear, Anger, Confusion, Sadness, Depression, Loss of Control

    • Patient

    • Family

    • Co workers

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Personal Impact

  • Lifestyle Adjustments - How to cope with the ongoing daily challenges ?

    • Independence

    • Home care/maintenance

    • Child Care/ Elder Care

    • What services are available to help ?

  • Recovery Focus - how to create an environment focused on recovery ?

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Beyond the Statistics

Over the last three years, think about the people you know: colleagues, friends, and family who have suffered from one of the following illnesses...

Cancer, Heart Attack, Stroke, Coronary Artery Bypass Surgery, Coma, Blindness, MS, Loss of Speech, Alzheimer’s, Deafness, Paralysis, Parkinson’s, Major Organ Transplant, Severe Burns, Renal Failure, Motor Neuron Disease, Occupational HIV Infection, Benign Brain Tumour.

1. Did they expect this would happen to them?

2. Would a $25,000 lump sum payment have made a difference in:

Giving them access to quick and cutting edge medical service?

Reducing their financial stress?

Enhancing their remaining time?

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Should your benefits program...

  • Effectively cover the most catastrophic events.

  • Provide stable, predictable costs.

  • Give a significant lump sum payout to employees.

  • Provide access to world renowned medical services.

  • Fill the growing gap due to increased morbidity.

  • Address real employee needs.

  • Cover real risks.

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Critical Illness Solutions Available

  • Guarantee Standard Issue (subject to short enrollment form)

  • Plan Options (examples):

    1. $50,000 for all employees;

    2. $25,000 for all employees;

    3. Tiered plan : $50,000 for execs. & $25,000 for all others.

  • Coverage to age 65 (to 75 for those currently 60 years +)

  • Portable

  • Guaranteed renewable

  • Policies will include a pre-existing conditions clause

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Critical Illness Solutions Available (example)

  • Plan Options:

    1. $50,000 for all employees;

    2. $25,000 for all employees;

    3. Tiered plan. $50,000 for execs. & $25,000 for all others.

  • Bi-weekly Cost (average cost per employee*)

    1. $18.40

    2. $10.37

    3. $10.64

    *cost may change based on number of smokers, assumes 20% smoke

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The Steps to Enroll

1. Provide an up to date census for quotation purposes.

2. Provide the LTD claims experience. (3 years)

3. Request an offer letter to outline the parameters of the plan.

4. Sign offer letter.

5. Complete the enrollment of eligible employees.

6. Install the plan.

7. Employee meeting.

8. Establish a contact for future administration.