A New Focus On Specific Losses
A NEW FOCUS ON SPECIFIC LOSSES
There has perennially been a casual attitude about the benefits available to indemnify people for specific losses; i.e., loss of, or loss of use of, limb(s), sight, speech or hearing. Recent terrorists activities have created a perception of real value on insurance that indemnifies the unfortunate people who incur such
There were comparatively few people injured in the WTC, Pentagon and Pennsylvania terrorist attacks, most involved people were killed. Let us not forget the Oklahoma City bombing that in addition to killing many people, maimed, blinded and deafened many more. It is this kind of attack that in the future is much more likely to happen than a hijacked plane crashing a building and incinerating a wide area. Specific loss from future terrorists attacks is very probable, but the occurrences of these kinds of losses have always been with us in our daily lives before terrorism came to America. Consumers are now more aware of these losses and their financial effects andwould like to know more about coverages to protect them financially.
THE PRICE TO BENEFIT RATIO
The High Limit Accident plan provides a lump sum benefit for Accidental Death and optional benefits for Dismemberment and Permanent Total Disability. DISMEMBERMENT COVERAGE is offered at an annual premium of $0.35 per thousand. It is very inexpensive. $1,000,000 would only cost $350! We prefer to call this coverage “SPECIFIC LOSSES”, because loss of sight, speech or hearing is not dismemberment. Furthermore, our “Dismemberment Benefit” does not require severance of a member. It pays in the event of loss of use of limbs. Remember former Senator Bob Dole, the man with a useless arm due to injuries received in World War II? Many injuries bring about loss of use conditions without physical severance or dismemberment having taken place.
REVIEW OF THE PRESUMPTIVE BENEFIT
The High Limit Disability Plans carry a benefit provision labeled, “Presumptive Disability”. This feature is usually glossed over as just another gathering of words in the policy, but on examination of the provision with a new focus on Specific Losses, the value becomes apparent. Monthly Benefits will be paid for the full maximum Benefit Period should the Insured lose THE USE of:
- Both hands – Palsy, burns, injuries
- Both Feet – Alex Zinardi lost both legs in his recent auto race accident
- One Hand and One Foot – STROKE causes this, some injuries also have this result
- Sight in both eyes – Glaucoma, Macular Degeneration, Diabetes and Injury are common causes of blindness
- Ability to speak – smoking, throat cancer, smashed lyrnx. We have two brokers with this problem.
AND IN ADDITION:
- The elimination period is waived – automatically
- Medical requirements are waived
- Pays a monthly benefit for the full benefit period even if the Insured can go back to work at the Insured’s own occupation or another occupation.
MORE REVELATIONS ABOUT TOTAL DISABILITY IN HLD
These exceptional plans, Executive 400, Physicians and Surgeons HLD, Disability Solutions and Star Cover, carry a package of benefits lumped under the
heading of Total Disability. In addition to the basic total disability benefits of these plans we have included the PRESUMPTIVE DISABILITY BENEFIT discussed above and the following:
- TRANSPLANT BENEFIT – This is a voluntary disablement created by the donation of a body organ to another person. Benefits are paid the same as a sickness disability. It has happened – It could happen – without such a provision a person who donates a kidney to another person would not be compensated because only disablement resulting from accident or sickness would be covered.
- RECURRENT CLAUSE – These valuable words prevent the policy from being an aggregate plan, that means the total number of months provided would in the aggregate be available for all heart attacks ever to be suffered in life. In other words a 60 month benefit period would be reduced by the benefits paid out for previous heart attacks during the time the policy would be in force. The recurrent clause changes the agreement so it provides 60 full months of benefits for each accident, each sickness, or any recurrence thereof. It means 60 months for each heart attack not 60 months for ALL heart attacks. Statistics advise us that 99.6% of all disabilities are over in 60 months or less. A plan that regenerates it’s maximum benefit pay out potential to cover reoccurring conditions is a very powerful consumer product.
AND THEN WE ENHANCE THE PLAN WITH RESIDUAL DISABILITY
This is a modestly priced option. It pays monthly benefits when the Insured suffers a drop in income of 20% or more. It pays in proportion to the drop from the Insured’s Average Earned Income. IT REQUIRES NO DEGREE OF DISABLEMENT . . . just a drop in income. We must remember that under any plan that pays benefits for TOTAL DISABILITY, the Insured faces a reduction of income when he / she returns to work. The self-employed Insured may have recovered physically, but continues to suffer financially due to lack of productive work during the period of TOTAL DISABILITY.
THE NEW INSURANCE WORLD
Americans have a new interest in insurance as a result of our September 11, 2001 terrorist assault. We are now aware the enemy is in our midst. We are aware that our personal war tools consists of an unyielding spirit, a determination that we will survive, a belief there will be a glorious future and insurance to help us overcome financial disadvantages that may result from bodily injury and even death.
All insurance premiums are destined to increase substantially because of the terrorist inflicted losses, but of all the insurance’s the ones likely to be least involved, and remain affordable are Accident Insurance and Life and Disability Insurance coverages.
People are comforted by carrying accident insurance. We have always provided a high limit, quality ACCIDENT PLAN and we proudly provide it for them now. Their life and disability insurance comforts them because these coverages financially protects them and their families. We should review with clients and prospects in slow, careful and complete ways how these coverages stabilizes their well being, fortifies them financially for unexpected events and these plans become the anchor chain tied to their dreams.
It is appropriate to offer life and disability buyers a chance to add the High Limit Accident coverages to their portfolio of security. The offer will be appreciated by most and utilized by many for it offsets many of the new perils they face.
High Limit Accident coverage is available in two convenient packages: As a stand alone Certificate of Insurance, or as an add on benefit to any of the High Limit Disability plans. On the disability application, question 14, SECTION III is a place to order out the amount of Principal Sum Benefit requested. On the SCHEDULE OF BENEFITS, SECTION 3 in the Certificate are the accident benefits set out as to the desired plan design.
The price is the same whether a consumer buys the stand alone plan or if benefits are included in a disability plan, except the $100 policy fee on the High
Limit Accident Certificate is waived if benefits are included on a High Limit Disability Plan. There is also a convenience to having one policy instead of two and one premium to be paid instead of two and in the event of claim only one set of claims papers will need to be completed.
Producers should contact all their clients and ask if they want to add accident benefits to their insurance portfolio. This is a good customer relations program that will likely yield some excellent sales of the highly persistent accident insurance plan, and it may very well arouse an interest in other insurance needs or desires.
Our Underwriters see it. Self defense studios will flourish. Personal and home protection items and supplies will flourish. Flower and gift shops will flourish. Security equipment and services will flourish. Insurance will flourish. And all business will rebound in an orderly way; entertainment, style, cosmetics, food and drink, of course, transportation and travel, business and professional services. And our adjusted attitudes will put the gleam back in our eyes and the smile on our face as we remain addicted to freedom, the champions of charity and dedicated to the perpetuity of America.