aig criticalcare plus

AIG CriticalCare Plus

Immediate Payout to Fill a Critical Gap

22FOR TRAINING PURPOSES ONLY

Life Insurance is a key component to any financial plan

But What If you Don’t Die?

Tremendous breakthroughs in medical technology have vastly improved survival rates

Life expectancy has increased by over 30 years in the less than 100 years

Medicine saves people, but quality health care does not come cheap


Do you know anyone who has survived a stroke, heart

attack or cancer?

Would a lump sum payment of $50,000 or $100,000 at time of diagnosis have made a

positive difference in their life?


This year about 1.2 million Americans will suffer a heart attack, and nearly 60% will survive

Over 1.3 million Americans will be diagnosed with cancer this year, and 64% of them are expected to survive at least five years

Each year about 700,000 Americans experience strokes and 70% survive.

There are 22+ million Americans alive today who have survived a heart attack, stroke, or cancer

Survival is a Reality


The costs surrounding a cancer diagnosis average $146,000 per patient

According to the American Cancer Society, over 65% of cancer related expenses are indirect, not covered by Traditional Insurance

Over 50% of bankruptcies are medically related

The Cost of Surviving


Your Health Insurance PortfolioMajor Medical Insurance

Reimburses for your covered medical expenses

Payments made directly to the provider

Out of pocket costs include: deductibles, co-pays, co-insurance, out-of-network costs, experimental treatments

Premiums usually increase annually with medical inflation


Harvard Study on U.S. Individual Bankruptcies

Over 50% of all bankruptcies are caused due to a medical/health related crisis

Over 75% of individuals bankrupted by a medical/health related crisis had medical insurance at the onset of the bankrupting illness


Your Health Insurance PortfolioDisability Insurance

Majority of working Americans don’t have protection in the event of a disability

Plans do not replace all lost earnings, only a percentage

Standard elimination period is 90 days before eligible for benefits

Many occupations are not eligible for coverage or have extra high premiums due to job risk


Your Health Insurance PortfolioLong Term Care Insurance

Reimbursement of home healthcare, assisted living facility or nursing home expenses

Traditionally a product for the senior market

Must satisfy a waiting period (usually 90 days) before eligible for benefits

Payments made directly to the provider

Benefit amounts selected may not cover the total cost of services. Inflation protection can more than double the cost of coverage.


Costs not covered by Traditional Health Insurance

Direct Costs

Deductibles

Co-Pays

Policy Exclusions(such as experimental treatment)

Out-of-network medical costs

Indirect Costs

Lost Income

Lifestyle changes

Increased financial responsibility

Transportation and lodging for non-local treatment

Why Do I Need AIG CriticalCare Plus?


CriticalCare Plus Pays lump sum benefit upon diagnosis of a covered

critical illness

Benefit not based on cost incurred or time lost from work

Benefit paid directly to the insured with no restrictions on its use

Pays in addition to other insurance

With few exceptions all occupations are eligible for coverage


CriticalCare Plus“Make decisions based on health not wealth”

Benefits Provide the Freedom to: Choose the best hospitals and physicians Elect treatments or services not covered by

traditional health insurance Pay mortgage, debts, or outstanding bills Seek experimental drugs or therapies Modify a home for special needs Stay home from work until you are ready to

return Replace income, yours or your spouse’s


An innovative product from

AIG American General



Pays a lump sum benefit directly to you upon diagnosis of one of 12 covered conditions

Minimum Face Amount: $10,000

Maximum Face Amount: $500,000


AIG CriticalCare Plus12 Covered Conditions: Invasive Cancer Heart Attack Stroke Kidney (Renal) Failure Coma In Situ Cancer (25% up to a $25,000 max) Severe Burns Loss of Sight, Speech or Hearing Paralysis (50% for paraplegia and hemiplegia) Major Organ Transplant (25% payable when placed on

UNOS listing) Coronary Artery Bypass (25% up to a $50,000 max) Loss of Independent Living


AIG CriticalCare PlusLOIL - Unique qualifying event to CriticalCare Plus

Loss of Independent Living is defined as permanent loss of two or more of the six activities of daily living, with an elimination period of 180 days:

Bathing

Dressing

Toileting

Transferring

Continence

Eating



Full benefit is payable through age 70

No reduction at age 65

After age 70; Loss of Independent Living remains the sole covered condition with full benefits payable for life



Other key product features include:

Preventive Care Benefit

Return of Premium

Best Doctors Endorsement


Preventive Care BenefitPays up to $50 for health screening tests during each

calendar year Blood test for

triglycerides Breast ultrasound Chest X-Ray Colonoscopy Electrocardiogram Fasting blood glucose Flexible

sigmoidoscopy Hemocult stool

analysis

Mammography Pap test PSA (blood test for

prostate cancer) Serum cholesterol to

determine HDL and LDL Serum protein

electrophoresis (blood test for myeloma

Stress test


Return of Premium

Return 100% of all premiums paid upon death of the insured, less any benefits paid to the named beneficiary


Best Doctors Endorsement

Access to a national network of over 50,000 doctors, who are personally nominated by their peers and recognized as a specialist in their respective field

Access through an interactive website

Access through doctor to doctor consultation


Optional Benefits

Benefit Extension Rider Medical Personnel HIV Benefit Accidental Death and Dismemberment


Benefit Extension Rider

Allows the policy to continue after the maximum policy benefit has been paid

Additional protection for two types of subsequent diagnosis: continuance and recurrence


Benefit Extension Rider (cont’d)

Continuance

Pays up to 3X the original benefit amount not to exceed $500,000

Will pay the full benefit for a diagnosis different from what was previously paid

Subsequent diagnosis must occur at least 180 days after the previous diagnosis


Benefit Extension Rider (cont’d)

Recurrence Will pay 50% of the policy maximum benefit

for second diagnosis of the same illness Must be two years treatment-free following

the original dianosis

Note:

Treatment does not include maintenance medications and follow-up visits


Medical Personnel HIV Benefit

Will pay the policy maximum benefit if the insured is diagnosed with HIV as a result of an accident, which occurred during the normal occupational duties


Accidental Death and Dismemberment

Units of coverage are $25,000 each Six unit maximum $150,000 maximum



In addition to the Lifetime Plan, CriticalCare Plus is also available as:

10 Year Term

15 Year Term

20 Year Term

30 Year Term

A more affordable choice only available through AIG American General


AIG CriticalCare Plus – 10,15, 20, and 30 year term plans

When would I purchase term coverage? To provide coverage until the children

graduate college To provide coverage for the balance of the

mortgage To provide coverage for the period of an

outstanding loan or any other limited financial obligation



Issue Age Age 18-64 for all non-

smoker plans except the 10 year term plan

Age 18-59 for the 10 year term plan and all smoker plans

Rating Structure Sex Distinct Rates Tobacco or Non-tobacco Accept or Reject – no

premium rating 5 year age bands 3 Premium Bands:

• $10,000 - $50,000• $50,001 - $100,000• $100,001 - $500,000


AIG CriticalCare PlusBenefit Amounts Minimum - $10,000 Maximum - $500,000 (not to exceed 5x earned income)

Spouse Coverage Up to 5x earned income not to exceed the benefit for

the primary insured If not working, benefit amount is limited to 50% of the

working spouse limit up to a maximum of $250,000

Child Coverage $50,000 maximum, not to exceed the primary insured's

benefit amount The premium covers all children for the same rate



Underwriting Face Amounts up to $100,000

• Non-medical underwriting• Fully completed application• MIB



Underwriting

Face Amounts $100,001 and greater

• Paramedical exam to include height/weight, blood pressure and pulse

• Full blood profile and urinalysis

• Ages 51-64, EKG

• $250,000 to $500,000 will require personal history interviews for applicants age 41-64 and APS in all cases



Underwriting cont’d The underwriting section of AIG CriticalCare

Plus producer guide will provide additional details on underwriting guidelines and practices for this product.

Who Are Prospects for AIG CriticalCare Plus?


AIG CriticalCare Plus - Prospects

Who?

Individuals in blue collar occupations:

Firefighters Police officers Welders Long haul truckers Janitors Waiters/Waitresses

Why? May be ineligible for

Disability Insurance If eligible for Disability

Insurance, premiums may be expensive

Can provide protection if loss of earnings is caused by a covered critical illness



Who?High Wage Earning

Professionals Physicians Attorneys Corporate Executives Business Owners

Why? Disability Insurance

replacement rates are less than 50% with a monthly maximum of $10,000 - $15,000

Disability benefits may be inadequate to cover monthly living expenses

Can provide additional benefits if loss of earnings is caused by a covered critical illness



Who?Small Business Owners

Why?

May be ineligible for Disability Insurance until the business is established

Need to replace business expenses in addition to personal income in the event of a disability

Lump sum payment can be used to keep the business operational during recovery from the critical illness



Who?

Individuals with certain medical conditions

Back problems Knee problems Situational depression

Why? May be ineligible for

Disability Insurance, but can qualify for Critical Illness Protection

May be the only protection available to provide benefits in the event of a loss of earnings caused by a covered critical illness



Who?

Stay-at-home parents

Why? Ineligible for Disability

Insurance Additional expenses in

unable to take care of the children due to critical illness

Working spouse may need to take time off from work to help with the children and care for the wife (Family Medical Leave Act)



Who? Individuals with high

deductible major medical plans or limited medical plans such as scheduled plans or mini-med plans

Why?

Critical Illness insurance can cover the deductibles, co-insurance, and other out-of-pocket expenses in the health insurance plan

Critical Illness packaged with a high deductible may be more affordable than a plan with a low deductible

Will allow you to seek treatment not covered by your medical plan…experimental in/or out-of-network



Who?

Clients with life insurance coverage

Why?

Client already understands the need for financial protection

Financially secure in the event of death, but what is your client survives a heart attack, stroke or cancer


AIG CriticalCare Plus Prospects

Who?

Divorced Parents

Why? Financial Obligations

• Child support• Loans for college

Disability insurance may not be sufficient to cover these obligations



Who? Single working parents

Why? Additional expenses

associated with caring for the children which would not be covered by disability insurance

Unlikely to have sufficient savings to buffer against increases in expenses

Lump sum payment will help alleviate stress they already face as a single parent


Pension Plans Some major pension plans are being discontinued 401k, IRA, ESOP are becoming primary method of

retirement savings

• Defined contribution plans

• Dependent on consistent contributions

Skipping contributions, or worse yet, having to take early withdrawals tocover medical expenses can devastatethe best laid retirement plan

CriticalCare Plus Sales Opportunity #10CriticalCare Plus Sales Opportunity #10

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