Protective CRITICALanswer SM Consumer Product Guide

Transcription

1 Protective Consumer Product Guide PLC /05

2 T HERE IS A SOLUTION TO HELP PREVENT A CRITICAL ILLNESS can help you prepare for the unexpected. FROM BECOMING A FINANCIAL CATASTROPHE AND DESTROYING LIVES. In the next four minutes, nine Americans will have a heart attack. In the next four minutes, five Americans will have a stroke. In the next four minutes, ten people in the United States will be diagnosed with cancer. In the next four minutes, five American families will be forced to declare bankruptcy because of a medically related financial hardship.* THE GOOD NEWS IS that medical advances are helping us live longer and survive critical illnesses that earlier would have been a death sentence. The bad news is that many medical insurance plans will not pay all the costs of recovery. This can result in your survival turning into a financial life sentence. Critical illness insurance can help ensure that you and your loved ones will have monetary resources in the event of a critical illness to help cover mortgage payments, out-of-pocket medical expenses or medical treatments from out- of-network specialists, and necessary home renovations resources to spend any way you wish. *Sources: information American Cancer Society ( information American Heart Association ( attack and stroke information

3 What is critical illness? A critical illness is a health-related condition such as heart attack, stroke, invasive cancer or cancer in situ, major burns, and a number of other conditions where the patient has a good chance of surviving. Critical Illness insurance, such as, provides a lump-sum cash benefit payable to the policy owner upon first occurrence and diagnosis of a covered condition. Are you prepared in the event of a critical illness? RECOVERING FROM A CRITICAL ILLNESS CAN TAKE TIME. If you are one of the fortunate individuals with a disability insurance plan in place, in many instances, it can take up to 90 days before coverage is activated. The majority of working Americans do not have the financial resources to survive months, and especially not years, without an additional income source while they are either totally or partially not able to conduct their routine profession. Single individuals may not have a financial safety net for those times when a critical illness demands added financial resources. Without a spouse or other people to provide options, it is especially important to be prepared through careful and responsible planning. Covered conditions Heart Attack Stroke Invasive Cancer Major Organ Transplant End-Stage Renal Failure Other Illnesses: Advanced Alzheimer s Disease Blindness Deafness Paralysis For all income levels and for those considered young, middle aged, or senior, critical illness coverage is a smart responsibility to embrace. THE FOLLOWING RESEARCH SHOWS THE IMPACT ON MANY AMERICANS. According to the U.S. Department of Housing and Urban Development, 50% of home foreclosures are the result of the homeowner suffering from a critical illness. 1 American Heart Association estimates Americans paid about $368 billion in 2004 for heart disease related medical costs and disability. 2 Research shows 33% of all families deplete all or most of their savings because of a serious illness. 1 With advances in medical technology being made every day, more patients are finding successful treatment and living for years to come. Major Burns Surviving Critical Illness Accidental Loss of Speech 1,200,000 Cancer In Situ (25%) 1,000,000 Coronary Bypass Surgery (25%) Angioplasty (10%) 800, , , ,000 These benefits vary widely by state. 0 Coronary Attack 4 Cancer 3 Stroke 2 Yearly Deaths Yearly Survivors 1 Critical Illness Insurance: A Lump-Sum Review. LIMRA s Marketfacts Spring Know the Facts, Get the Stats: American Heart Association ( )

4 Surviving A Critical Illness How many of us can say that we have a friend, business associate, or even a family member that has recently been diagnosed with a critical illness? The good news is that with continued advancements in medical technology, the chances of surviving a critical illness have increased. Unfortunately, there can be substantial expense associated with surviving a critical illness and the financial impact can be devastating. can help guide you down the road to recovery giving you options you may not have otherwise. The Cold Hard Facts Financial commitments continue even during illness. A critical illness can have a significant impact on your personal lifestyle and your family. If you are diagnosed with a critical illness, you could be faced with: Loss of income even with disability insurance, income replacement usually covers only a portion of current income and waiting periods may apply. Medical expenses including deductibles, co-payments, prescription medications, private nursing care, or durable medical equipment may not be covered by your group health insurance. Alterations to your home such as wheelchair accessibility. Outstanding and mounting personal living expenses such as mortgage and car payments, credit card debt, utilities, childcare, and food. Taking into account the financial strains posed by a critical illness, you can see how important it is to have a plan in place that will provide a living benefit so that you won t have to worry about how you are going to pay the bills. Instead, you can focus on getting better. Every 45 seconds, someone will have a stroke. This number 3 killer is the leading cause of severe, long-term disability. The average cost of a stroke within just the first 30 days of an acute event is $13,019 for mild ischemic strokes and $20,346 for severe ischemic strokes. 1 The leading cause of disease in women is cardiovascular disease, more than cancer, and only 13% of women consider cardiovascular disease their greatest health risk. And, 40,000 more women than men have a stroke annually. 1 In 2000, 9.6 million Americans were alive having survived a history of cancer. 2 1 Heart Disease and Stroke Statistics Update. American Heart Association. Dallas, Texas Heart Disease and Stroke Statistics Update. American Heart Association. Dallas, Texas

5 is a living benefit. is designed to provide coverage when you need it most upon first occurrence and diagnosis of a covered critical illness. This insurance can help you focus on recovery with peace of mind instead of worrying about how to make ends meet or draining savings set aside for later years. It provides a living benefit. can help guide the way to financial security for one or two-income families, single individuals, and business owners. Even for those individuals employed by companies too small for group disability coverage or with disability coverage only for limited types of employees, can be there for you. Understanding the Features of An answer to many of your potential critical illness needs, this coverage is a limited benefit health coverage policy. will pay you a lump sum amount upon the first occurrence and diagnosis of a covered condition. The initial benefit amount is the amount of critical illness insurance coverage requested by the insured and approved by the company. The initial benefit amount reduces by 50% at age 65, or 5 years after issue if later, with no reduction in premium. Coverage for a Lifetime is guaranteed renewable for life, subject to changes in premiums due to class. The owner may renew the policy by paying each renewal premium when due or by the end of its grace period. If the insured is age 60 or older on the policy effective date, the remaining benefit amount will be reduced by 50% on the 5th anniversary. In all other cases, the benefit amount will be reduced by 50% on the policy anniversary following the insured's 65th birthday. Return of Premium Upon Death Feature If an insured dies while this policy is in force, this benefit pays the policy owner, beneficiary, or the estate an amount equal to the total amount of premiums paid, less any benefits received from the policy, to the extent that the premiums paid exceed the benefits under this policy. This feature is built into the policy and is not an additional cost provided by a rider to the policy. With this flexibility, the decision to apply for coverage becomes an even easier one to make. 100% of the Benefit Amount is payable for: Heart Attack Stroke Invasive Cancer* Major Organ Transplant End-Stage Renal Failure Advanced Alzheimer s Disease Blindness Deafness Paralysis Major Burns Accidental Loss of Speech 25% of the Benefit Amount is payable for: Cancer In Situ* Coronary Bypass Surgery 10% of the Benefit Amount is payable for: Angioplasty No Waiting Period on Most Covered Conditions With the exception of a reduction of benefits for certain cancers, there are no waiting periods. If the insured is diagnosed with a covered condition of Invasive or In Situ Cancer, the reduced benefit period shall be 90 days, beginning on the policy effective date. If such covered condition occurs and is diagnosed during the first 90 days of coverage after the policy effective date, there will be a benefit payment of 10% for Invasive Cancer or 2.5% for Cancer In Situ, and the policy will terminate. Covered conditions vary widely by state. * If the covered condition is diagnosed as Invasive or In Situ Cancer, the reduced benefit period shall be 90 days, beginning on the policy effective date of this policy. If such covered condition occurs and is diagnosed during the first 90 days of coverage after the policy effective date, there shall be a benefit payment of 10% for Invasive Cancer or 2.5% for Cancer In Situ, and the policy will terminate.

6 Anne s Use of the Multiple Payment Benefit Feature Anne has a Multiple Payment Benefit Feature Perhaps one of the most significant features of is the Multiple Payment Benefit. It is a feature of the policy which allows for multiple payments from the three categories (detailed in the chart below) of covered conditions. The payment of benefits under each category shall not exceed 100% of the initial benefit amount for each category. You can receive multiple benefit payments if that covered condition meets the terms and conditions of the policy. The total of benefit payments can be up to three times the initial benefit amount. After the initial benefit payment under the policy, you can choose to continue paying the premiums and possibly receive additional benefit payments. This feature is an inherent benefit of the policy and is provided at no additional cost. Critical Illness Categories ** Category 1 Heart Attack Stroke Major Organ Transplant (including Heart) Coronary Bypass Surgery (25%) Angioplasty (10%) Category 2 Invasive Cancer Cancer In Situ (25%) Category 3 Major Organ Transplant (not including Heart) End-Stage Renal Failure Advanced Alzheimer s Disease Blindness Deafness Paralysis Major Burns Accidental Loss of Speech Therefore, this coverage can be worth more to you than just the face amount. ** Refer to the actual policy for the Exceptions and Limitations, and note that benefits vary widely by state. policy with a face amount of $100,000. Three days after the policy was effective, she was diagnosed with her first heart attack and filed a claim for $100,000 and was paid. Anne continued to pay her premiums and eight months later, she was diagnosed with invasive cancer and filed a second claim for $100,000 and was paid again. Still making her premium payments, two years later Anne was diagnosed with end-stage renal failure and filed a third claim. She received a third payment of $100,000 and her policy terminated. Anne s decision to continue paying her premiums for less than three years netted her $300,000 in a living benefit and helped her focus on recovery with a greater sense of financial security. This testimonial is for example only. With the average male claim in Canada at 47.5 years of age and the average female claim at 44.7, the middle market is a strong attraction. Phil Marsillo, Sr. V.P., Canada Life Distribution Canada Life Insurance Company 2005 World Critical Illness Conference

7 Optional Riders * Protective offers optional riders that can be added to customize coverage to help ensure you receive a policy to meet your specific needs. OPTIONAL SPOUSE CRITICAL ILLNESS RIDER An optional spouse critical illness rider covering the spouse of the insured may be purchased for an additional premium. This rider provides the same critical illness coverage for the spouse as the base policy provides for the primary insured, and it may be converted into an individual critical illness policy if conditions are met. (See policy contract for details.) OPTIONAL ACCIDENTAL DEATH BENEFIT RIDER This rider provides additional low cost coverage that pays a death benefit of a specified amount, up to the initial benefit amount or $150,000, whichever is less, if the insured dies as a result of a covered accident. Upon your accidental death, this benefit is in addition to your return of premium feature. * Optional riders are available at additional costs. Actual terms and conditions contained in each rider govern all benefits provided. Assumes medical and financial underwriting qualifications at time of initial application. Not available in all states.

8 About Protective Protective Life Insurance Company was established on a profound belief in the American dream. Since 1907, Protective Life Insurance Company has remained true to its core beliefs: quality, serving people, and growth. This unwavering commitment to treating people the way we would like to be treated has been rewarded with stable, long-term relationships and growth. Today, Protective Life is one of the nation s leading insurance companies, proving the wisdom of our Company s vision: Doing the right thing is smart business. Protective Ratings:* Protective Life Insurance Company has insure r financial strength ratings of A+ (Superior, 2nd highest of 15 ratings) from A.M. Best, AA (Ve r y Strong, 3rd highest of 21 ratings) from Standard & Poor s, AA- (Very Strong, 4th highest of 22 ratings) from Fitch, and Aa3 (Excellent, 4th highest of 21 ratings) from Moody s Investors Service. Each of these independent rating agencies has assigned its rating based on a variety of factors including Protective Life Insurance Company s operating performance, asset quality, financial flexibility, and capitalization. * These ratings are current as of August For more current information, please visit Policy form CI-03 is a limited benefit health coverage policy. It provides limited or supplemental coverage, paying benefits ONLY upon occurrence and diagnosis of a covered condition. Advanced payments reduce base policy's benefit, and any lump sum payments may be taxable. Consult your tax advisor for tax details. If 100% of the maximum allowable benefit is advanced, the policy will terminate. Consult policy for benefits, riders, limitations, exclusions, benefit reductions, and terms under which the policy may be continued in force or discontinued. Policy form may vary by state. Subject to underwriting. Not available in all states. For complete details of coverage and costs call: Highway 280 South Birmingham, AL