Looking to bridge the gap between health insurance plans and life insurance options?
Offer critical illness plans to satisfy your clients looking to offer protection. Demand is rising, and it could be just the medicine you need to boost your sales.
When Life Insurance Is Not Enough
The 2025 Life Happens and LIMRA Insurance Barometer Study found that, of Americans who responded to the survey, 25 million need more life insurance. The thing is, if a critical illness strikes while your client is still alive, proceeds from life insurance probably won’t cover it.
2025 Life Happens and LIMRA Insurance Barometer Study found that, of Americans that responded to the survey, 25 million need more life insurance.
An accelerated death benefit rider may help cover some costs, but only if that client is terminally ill (in most cases). That’s one of the reasons why many agents today are looking at presenting critical illness plans as part of a larger strategy for asset protection rather than just a stand-alone life insurance policy or ancillary solution.
Start your ancillary product deep dive! Our ancillary sales guide, A Quick Guide to Cross-Selling Ancillary Insurance with Medicare Products is a must-read for agents branching out with ancillary products!
Critical illness insurance provides a lump-sum payment or graded benefit following the diagnosis of any illness listed in the policy. Funds are paid directly to the insured (not doctors or hospitals) and can be used for any purpose. Some plans provide a per-day benefit for surgery or other procedures and can help stabilize household finances during an incredibly stressful time.
Carriers are now focused on adding benefits that will enrich the lives of clients. Allstate references that plans are often updated based on “evolving societal trends, consumer behaviors, and ever-changing economic conditions.”
Individual plans for the self-employed and small businesses are also seeing a rise in popularity. Some plans are available on a guaranteed-issue basis to employer groups with at least 100 employees.
A Variety of Plans Available
There are many critical illness plans available. Some even cover cancer up to age 85. Many plans also cover renal failure, stroke, heart attack, or a combination of conditions.
Many plans also cover renal failure, stroke, heart attack, or a combination of conditions.
Recent statistics show that one out of every three women and men will get cancer. As an agent, you already know selling health policies and life insurance to anyone over age 65 can be challenging. Health issues, underwriting, and cost all play a role in eligibility.
It’s possible your clients haven’t considered critical illness coverage as a way to protect their nest egg if unexpected medical treatments should arise from cancer or other conditions.
Plan payouts can range from $15,000 to $30,000. Other plans pay out in stages. Do your research and compare. There are some critical illness policies out there that will provide cancer coverage for smokers (albeit at a much higher premium)!
Offer your clients an ancillary plan that could change their lives! Contract with critical illness carriers now using *Contract Now!**
*Newly registered agents must speak with their Sales team to unlock Contract Now.
Offer Critical Illness During Client Conversations
In most cases, a simple series of questions asked in the house can prequalify your clients for coverage.
Your ability to ask, “Have you thought about critical illness?” is a good way to learn more about family health history and open the door to additional fact finding. Save the question for last in your presentation after you’ve closed a sale for something else. Ask about your clients’ parents and other relatives. Do certain conditions run in the family?
Usually, your clients will see the value of critical illness protection, but it’s up to you as an agent to show them how having that extra money to fight unexpected illness can be a lifesaver.
Living proceeds from critical illness policies can also be used to pay for services often overlooked, such as temporary in-home care (especially when many seniors don’t qualify for fully underwritten long-term care). Other uses for critical illness coverage include paying for expensive medications and treatments and keeping the household moving forward by covering utility bills, groceries, travel expenses, and other essentials.
Living proceeds from critical illness policies can also be used to pay for services often overlooked, such as temporary in-home care.
The Future of Critical Illness Protection
Critical illness plans can change on a year-to-year basis, and some carriers are making it more difficult to qualify. Others are reducing lump-sum amounts. Despite these changes, critical illness plans continue to add value by building sales and protecting clients.
The critical illness market is considered to be growing due to rising health care costs and the rise of chronic conditions. This is an excellent time to join this market if you haven’t already!
Numerous businesses and consumers are growing interested in critical illness insurance. It’s no wonder why more and more insurers have started offering new and/or improved critical illness products.
Originally, this type of insurance only paid out for one occurrence of a listed condition. Moreover, a beneficiary’s policy was terminated upon this payout. Now, insurers offer policies that cover a wider variety of conditions and allow beneficiaries to receive multiple payouts if they suffer from a recurrence or another condition entirely.
Offer Continued Support to Chronically Ill Patients
Building good rapport with clients and protecting their interests can usually be achieved with a simple conversation around critical illness. These plans are also well-suited to younger individuals and couples with kids who may have a family history of certain conditions. In today’s economy, one of the key factors leading to bankruptcy is unexpected medical bills.
To stave off debt, some older adults dip into, or sometimes deplete, their retirement savings and end up paying extra due to resulting taxes, fees, and reduced health insurance subsidies. However, other adults don’t even have enough, or near enough, of a nest egg saved to cover all the costs. Thirty-one percent of seniors surveyed reported being financially constrained with 18 percent living paycheck-to-paycheck.
For households worried about rising out-of-pocket costs and balancing health care with everyday costs, critical illness plans could provide additional peace of mind. So, no matter who or what age your clients are, have a candid discussion about critical illness strategies. With the right plan and affordable premium in place, your clients will feel at ease knowing those “what ifs” won’t become “what nows.”
At Ritter, we prioritize your client’s health and wellbeing. Register with Ritter to have access to a library of competitive critical illness and ancillary contracts. In addition to these contracts, you’ll have support from our specialized Sales team.
Registration is free and gives you access to contracting and sales support, additional tools with Integrity, and online contracting through Contract Now*.
*Newly registered with Ritter and ready to unlock fully online contracting through Contract Now? Have a conversation with your sales specialist.
Not affiliated with or endorsed by Medicare or any government agency.
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