Copyright © 2012 by Keith Leech All rights reserved, Including the right of reproduction In whole or in part in any form Critical Illness Training Critical Steps Module 1: A Blueprint to Critical Illness Insurance Sales Success For agent use only. Not for use with consumers A (12/12)

Ken Smith, director, health product sales Copyright © 2012 by Keith Leech All rights reserved, Including the right of reproduction In whole or in part in any form

Critical Illness’s Greatest Hits “Built by brokers, for brokers”

For the Next 3 ½-4 Hours: 6 modules Breaks about every 60 minutes Interactive – Ask Questions

No One Has Done Anything Similar in the U.S. Market You will receive access to: Video training PowerPoints Sales manual and scripts Follow-up conference call

“Failure To Implement Syndrome” If you do not put into practice what you see and learn today, then this meeting is of no value. F.T.I.S.

Goal Help you channel your energy into action Les Brown

Who Do You Know…?

Who Has Sold Critical Illness?

Overview Critical Illness Insurance – What is it? –Why so important NOW? Attaching value to the CI benefits Presenting the CI solution and tailoring your message Getting people to act Overcoming objections Product and underwriting

Program Focus Quickly cover product basics Spend more time on actionable strategies and language to help agents and clients understand the importance of CI protection

Critical Illness Insurance Invented by Dr. Marius Barnard in South Africa in Marius assisted his brother, Christian, in first successful heart transplant. CI coverage was created to help those who survive critical illnesses financially recover.

Why Sell Critical Illness Insurance? 1.Client Need –This is the focus of the entire program –The key to broker success

Why Sell Critical Illness Insurance? 2. Broker Income Potential Low current market penetration Door opener Current clients are a market Client retention Purchaser typically is also the claimant Superior referrals—at time of claim

Why Sell Critical Illness Insurance? Insurance may help protect the broker’s income.

Clients’ (Broker’s) Mental Process Too many insurance products –How to decide if “important” Why this Critical Illness Insurance product now? Do I really need it?

The “Why Now?” with CI: Lack of Societal Momentum Compared to need for other insurance products: –Buy first car –Buy first home

Two Types of... Break-ins/thefts Diagnoses? ScriptScript: One of the great door- opening conversations…”Do you know there are two types of…”

Goal for CI Meeting No quotes or pricing until: –“If it were free, they would take it” –“If it were $__ per month, they would take it” The instant the quote is on table, you are selling Before that, you are exploring and explaining So let’s talk about—Why CI Now…

Times Have Changed The realities of health have changed Clients will get the why now when we explain the 3 realities of health today.

3 Realities of Health 1. Incidence 2. Survival with consequence 3. Randomness

3 Realities of Health 1. Incidence -Many think this is the key to CI Sales -In reality, it is only part of the story -Stats everywhere

Anyone Ever Seen Our Incidence Stats? …and then said?: “Wow! Before I saw your amazing stats, I never knew that a lot of people got cancer.”

Challenges with Incidence Stats Broad statistics compelling? -Life insurance statistics -Learn from the charities Can be seen as a scare tactic -Especially because people know this in their gut

Stats Without Numbers High School Reunion Script

Incidence Alone Means Nothing 100% of people are going to be diagnosed with cancer today…that’s not enough information to know if we should buy CI Because if we all die this evening, we had the right insurance already

3 Realities of Health 1. Incidence 2. Survival (with consequence) Survival Stats…why? Earlier diagnosis and better treatment options

Why CI Now? Game Has Changed Two professions – Medical and Insurance Doctor, doctor, doctor! 4 – 34 – 58 – 56 – 30 – 100 -Cell phones -Defibrillator -Body cooled intentionally -No death claim

Old vs. New or Modern Planning Question: What is the right insurance product for cancer, heart attack, stroke, etc.? Old Planning… New or Modern Planning… Script

Change and Einstein Assistant: “There has been a horrible mistake, these are the same questions as on the old exam.” Einstein: “Yes, but the answers are all different.”

Words Don’t Lie For every “without warning,” “suddenly” and “unexpectedly”… –After a long and courageous battle –Surrounded by friends and family –Thanks to our team of caregivers –In lieu of flowers, please donate…

Directions GPS Script

Do Not Over-Sell the Survival Survival with consequence World turned on its ear The magic pill…

Magic Pill Objective: To illustrate gap between dying and surviving, with impact End of script:script “I would love for this great CI product to become unnecessary. Nothing would make me happier than if all my clients, friends and their families knew that if they got a critical illness, they could take a magic pill and be completely unaffected by the illness.”

3 Realities of Health 1. Incidence 2. Survival with consequence 3. Randomness (especially if underwritten product )

The Best Objection Ever... What is it about me? Twin brothers

Who Survives? Healthy or unhealthy? “Because you are healthy” “Specifically for you” The unhealthy need more life insurance

Healthy - Not Going to Happen Patrick Swayze Sheryl Crow Mario Lemieux Lance Armstrong

“Randomness” Objection Killer Covered further in objection module The “random” discussion greatly reduces the ”not going to happen to me” objection

3 Realities of Health – Why CI Now? 1. These things happen a lot (incidence) 2. The good news is people aren’t dying nearly as much, but their lives are still hugely impacted (survival with consequence) 3. And, it’s often the healthiest person you know (randomness)

Script–Two Types of… “Quite frankly, do you know there are two types of break- ins—insured and uninsured? Someone breaks into your home, causing tremendous damage to your property. The event is exactly the same, whether you have insurance or not. The impact on your and your family’s finances and general well-being is dramatically different. Everyone knows that an insured break-in is better than an uninsured break-in. Most prospects don’t know there are two types of cancer—insured and uninsured.”

Script: Stats Without Numbers High School Reunion “Which high school anniversary could you be celebrating this year?” (For our example, let’s assume 20 th ) A couple questions for you: let’s say 10 years from now, your school sends out invites for the big 30 th reunion; what percentage of your graduation class do you think can’t make the reunion because between now and 10 years from now, they passed away? Now, what percentage of your class do you think will, in the next 10 years, have to deal with a major health scare like cancer, heart attack or stroke?” Clients will often say no people of their graduating class (or fewer than 1 %) will die, but are willing to say 10-20% when it comes to having major illness.

Script: Old vs. New/Modern Planning “The answer to the question: ‘What happens when people are diagnosed with cancer, heart attack and stroke?’ has changed dramatically over the last couple of generations. It used to be when people were diagnosed with these illnesses they tragically passed away, then their families collected on their life insurance. The good news today is most people don’t die from a horrible health issue like cancer, heart attack and stroke. This is great, but it also means that there is no insurance money from their life insurance like in the old days.” (continued)

Script: Old vs. New/Modern Planning “Modern insurance planning recognizes that since the answer to the question: ‘What happens when people are diagnosed with cancer, heart attack or stroke?’ has changed dramatically, so should their insurance strategies. That is exactly where this product fits in. It provides financial relief and options when a major health scare like cancer happens, and you survive but still are impacted by that major health event.”

Script: Directions “If, however, you miss a turn (get sidetracked by a major health event), with written directions only, you may have a tough time getting back on track. A modern plan works more like a GPS. Your route is planned, but if you miss a turn, it recalculates your path and gets you back on track as efficiently as possible. Old insurance planning worked when most people who were diagnosed with cancer, or had a heart attack or stroke, unfortunately passed away. The insurance industry provided the life insurance benefits. Generations ago, financial planning was similar to providing someone with driving directions. A client would say “Here’s where I want to get to financially much later in life” and an agent would say “invest this much in this manner, and you will get there.” They would also build in life insurance, so if a major health event occurred and the client passed away, their family was not knocked completely off course. (continued)

Script: Directions The good news is now health crises are less likely to be fatal, but unfortunately can still dramatically throw a person off course and off the old planning directions. Modern planning recognizes this, and as one client put it best: The modern agent acts more like a GPS than a provider of a set of directions. You still tell me where you want to get, and we draft the quickest or most scenic route, but if you are knocked off course by a major health crisis, then like a good GPS, we have products that help us “recalculate” to get you back on course.”

Script: Magic pill “ It seems strange to say, but it is largely a good thing that we need to be talking about Critical Illness insurance today because unlike a couple of generations back, more and more people are not using their life insurance when diagnosed with cancer, heart attack and stroke. These improvements to survival rates are due largely to improved diagnosis and treatment options. Unfortunately, however, we are not so improved that when people are diagnosed, they can be given a magic pill and go right back to life as if the illness did not happen….can we?” (continued)

Script: Magic Pill I would love this great CI product to become unnecessary. Nothing would make me happier than if all my clients, friends and family knew that if they got a diagnosis, they could take a magic pill and be completely unaffected by the illness. Unfortunately, I know firsthand that is not the case today, and I don’t see us progressing that far anytime soon. Until we do, this product is here to acknowledge the reality that just because you don’t die immediately from cancer, heart attack or stroke does not in any way guarantee your world won’t be turned upside-down.”

Questions? For agent use only. Not for use with consumers A (12/12)