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Advisors make mistake with CI choices

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Life Health Professional | 26 Oct 2015, 08:15 AM Agree 0
You can’t always get what you want, but advisors can make sure clients can get what they need – even when they have pre-existing conditions
  • Peter | 26 Oct 2015, 02:23 PM Agree 0
    While I know that Tim is a very knowledgeable person in the area of Living Benefits, the article fails to mention that a Guaranteed Issue CI policy has a double whammy:
    1. the cost is significantly higher than a standard fully underwritten policy, even one that has limited covered conditions
    2. the conditions of a Guaranteed Issue policy are quite limited
    And many such policies may also have various limitations and even pre-existing conditions.

    Tim also suggests that if you have MS, you can get a standard policy with an MS exclusion. Chances of that happening are few and far between as MS can lead to numerous other complications.
  • | 26 Oct 2015, 08:05 PM Agree 0
    Some C.I. coverage is better than none at all.

    Here are two (2) Critical Illness products that are a great alternative to a fully underwritten product ...that might otherwise result in a potential decline or rated policy; plus they both offer excellent coverage at affordable premiums.

    Option # 1: Wawanesa Life's Quick Issue C.I. policy: only 8 qualifying questions - no medical underwriting, issue amounts: $10,000 to $100,000, 15 covered conditions, issue ages: 18 to 60 years, 3 plans: 10 Year Term Renewable to age 75, Level to age 75 and Level to age 75 with Return of Premium. Very competitive premiums.

    Option # 2: Edge Benefits: Guaranteed Issue up $25,000, additional $75,000 with good health (no family health questions), 21 covered conditions, 2nd event rider; issue age: 18 to 64. . Better than coverage to age 65, ONLY provider (to my knowledge) to offer coverage to age 70. In some age bands, the premiums are lower than level to age 75 offered by some insurers. Includes a 24-24 pre-existing condition limitation.

    Ken MacCoy, CHS
  • Tim Landry | 05 Nov 2015, 11:08 AM Agree 0
    Peter I was not saying anything specific about MS exclusions (or ANY exclusions). I was just saying - based on a presentation I heard many years ago at one of the first CI conferences either in Vancouver or Victoria that a client is better off starting with a basic coverage (and I certainly recognize the weaknesses - both from a coverage and price point of view) and then building from that. It is far more important to have SOME coverage for the conditions which represent the VAST majority of claims than to have none at all. Once that coverage is in place feel free to build on it - and possibly eventually replace it
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