Critical Illness Insurance Living Benefits Center
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New Insurance Product
New Insurance Product to Serve Rapidly Growing Market
"Critical Illness"
Coverage Introduced to the U.S. After Enormous Success Abroad
100% Lump Sum Benefit Paid at Time of Diagnosis Designed to Help Individuals, Families, and Business Owners Remain Financially Sound While Medical Advances Address Their Physical Recovery
On each and every day in 1997, while more than 4,000
Americans will suffer a heart attack and another 3,000 Americans will
be diagnosed with a life-threatening cancer (one every 20 seconds), few
of those stricken with a critical illness will be prepared for the financial
consequences of their recovery. Why? Thanks to dramatic advances in medical
technology, many diseases once assumed to be terminal have instead become
very survivable. Strokes and heart attacks, for instance, no longer carry
a death sentence with them but rather a promising chance of recovery.
Consider the facts:
Of the 1.5 million Americans who will suffer a heart attack this year, more than 73% will survive at least 3 years.
Over 40% of the population will develop breast, prostate, or some other form of cancer at some point in their lives.
Of those who suffer a Critical Illness before age 65, the likelihood of surviving is almost twice as great as dying!
"That's the good 'news'," according to Michael K. Carroll, Chairman of Briarwood International, Inc. and a specialist in Critical Illness coverage development. "The problem is that this type of survival and recovery is expensive both in and out of the hospital, and traditional life and disability insurance products have not kept pace with medical science. In short, the technology which can save a physical life, can also result in a form of 'financial death'. That's where Critical Illness insurance comes in." "Critical Illness benefit payments can help pay the cost of expenses that are typically not covered by traditional insurance including home health or child care, home modifications, travel costs, and overnight stays for treatment, or simply to replace lost income. In fact, according to the American Cancer Society's 1995 Cancer Facts and Figures, $69 billion, or two-thirds of all cancer-related costs were indirect, non-medical expenses."
Critical Illness coverage provides a 100% lump sum benefit paid directly to the insured upon the diagnosis of a critical illness such as cancer, heart attack, stroke, Alzheimer's Disease, and others. In other words, Critical Illness coverage provides a 100% lump sum living benefit that pays cash directly to the policyholder at a point of enormous financial need. Critical Illness coverage includes a death benefit if the insured were to die without the onset of a critical illness diagnosis. Benefits are Independent of Other Insurance Plans
"It is also important to note," states Carroll "that Critical Illness benefits are not tied to other insurance plans, and benefits are fully paid even if the critical illness survivor has insurance that covers all or a portion of the treatment expenses. This is a very powerful product attribute, especially when you consider that many of the expenses associated with critical illnesses, such as home health care, experimental treatments, housekeeping, and lost income from time taken off work are normally not covered by traditional insurance."
Moreover, those individuals with disability insurance already know that, to receive benefits, their conditions must qualify under the policy definitions. They are also subject to waiting periods and payout limitations that normally do not exceed 60% of their income. Also, while medical insurance typically covers doctors bills, hospital stays, and traditional medical costs, the brunt of the financial burden is still left sitting in the afflicted person's lap. "Mortgage and car payments, college tuition, and other expenses can be overwhelming due to an inability to work while sick," commented Carroll. "This leaves a huge financial burden resting with individuals, families or businesses at a time in which they are most vulnerable." Industry Experts Anticipate a $70 Billion Market in Three Years
Critical Illness insurance was organized in 1981 by Dr. Marius Barnard (brother of Dr. Christian Barnard, who performed the world's first successful open-heart transplant surgery), after he observed that many people did not have adequate financial resources to cope withthe onslaught of a serious illness. With costs escalating, he noticed that the financial battle of being ill was as difficult as the physical struggle. At that point, Dr. Barnard helped develop Critical Illness insurance to address this specific need. Today, the results are staggering. When introduced in Japan in 1992, Critical Illness insurance sold 500,000 policies in its first year; and now, less than four years later, they have sold more than 7 million policies. Similar results have been seen in both Australia and the United Kingdom, with sales of more than $32 billion in the U.K. alone for 1995
Initial Producer Reaction "Extremely Enthusiastic"
"In today's complex environment," commented Bradford Dyer, President of Briarwood International, Inc. "Critical Illness insurance has become an absolute necessity. Married people need it to provide coverage for either a critically ill wage-earner, or a homemaker. Single people need Critical Illness coverage to pay for missed work, and possible home care. Businesses need the policies to help cover for the missed skills of a sick partner." According to Steve Johnson, a National Sales Director for Briarwood in Omaha Nebraska, initial producer reaction to the new product in the U.S. has been overwhelmingly enthusiastic. "The logic is compelling." he explained. "As people survive due to medical advances, they increasingly need a financial means for that survival to take place. For the longest time, there were no provisions available; now there is."
"As we bring Critical Illness insurance into homes and businesses across the country, we strongly believe that people will begin to think a little differently about their own financial security," adds Kenneth Warne, an owner of Briarwood in Virginia. "Now, more people will have the opportunity to look forward to a full, financial secure lifetime with friends, partners, and loved ones---as opposed to planning for life without them."
For additional information on Critical Illness insurance,
please contact us today.
Michael K. Carroll, Chairman and CEO
Briarwood International, Inc.
Telephone (540) 856-3222
Fax (540) 856-2110
E-Mail