1. Attitude The Shoe Salesman

2. Expectations

3. What is Critical Illness Insurance? It Pays a Lump Sum Benefit on the Diagnosis of a Covered Condition

4. Purpose Critical Illness Insurance was created to Remove Financial Stress so that the Person can Focus on Recovery It’s About Survival

5. Opportunity We believe Critical Illness is the best opportunity our generation will have in the insurance business

6. Opportunity n Meets A Need Not Met by any Other Product n Makes a Difference in People’s Lives n No One Owns It - Everyone is a Prospect n Sets You Apart

7. History of Critical Illness n Developed by Dr Marcus Barnard n Originated in South Africa in 1983 n Introduced in: England1987 Australia1990 Japan1993 Canada1994 US1999

8. Successful In Every Country n Takes 5-7 years before sales start to develop n Sales Ideas are transferable n 20 years of Sales Ideas

9. Claims Experience UK Claims Paid AgeMaleFemale Under 4033%45% 41-5035%35% 51-6023%14% Over 61 9% 6% Average Age of Claims Paid: 43

10. Who Do You Know? n Ask your clients: n “Who do you know?” n “Who do you know that’s had a heart attack, cancer or stroke?” n “Who planned to be on that list?” n “Who on your list could’ve used $25,000, $50,000 or $100,000?” n “How would they have used that money?”

11. Due to medical advancements: n People are living longer n More critical illnesses are being diagnosed n People are surviving critical illnesses n Survival has a price Medical Advances have changed our lives and are changing our world

12. Why Critical Illness Insurance Now?

13. Why there are more Critical Illnesses such as Cancer, Heart Attack and Strokes today?

14. Leading Causes of Death in 1900 n Pneumonia12 % n Tuberculosis11 % n Enteritis 8 % Source: The Wall Street Journal, 08/27/01

15. Average Life Expectancy 1900 - 47.3 2001 - 77.2 Source: National Center for Health Statistics 2002 People are living longer

16. Lifestyles – Today We n Diet n Smoke (Some of Us) n Work more n Sleep less n Rush The Result: More Stress

17. What are the odds? In the United States n Every 29 seconds, someone suffers a coronary event 1 n Every 45 seconds, someone suffers a stroke 1 n About 1.3 million new cancer cases are expected to be diagnosed in 2003 2 1 Heart Disease & Stroke Statistics - 2003 Update: American Heart Association 2 2003 Cancer Facts & Figures, American Cancer Society

18. Critical Illness Insurance Your chances of surviving are better than ever... 2000 Heart and Stroke Statistical Update, American Heart Association 2000 Cancer Facts & Figures, American Cancer Society

19. Surviving has a price... Source: 2002 Cancer Facts & Figures, American Cancer Society Critical Illness Insurance

20. Survival Has a Price Indirect Expenses n Loss of income for self and / or spouse n Home modifications n Experimental treatment n Child care and domestic assistance n Transportation and lodging for family members and caregivers during treatment

21. Survival has a price Critical illness insurance meets a need not met by: n Medical Insurance n Life Insurance n Disability Income

22. Type of Critical Illness Insurance n Rider On a Life Policy n Stand Alone Health Policy

23. Life-Threatening Cancer Heart Attack Stroke Major Organ Transplant (when registered with United Network Organ Sharing/UNOS) Alzheimer’s Disease Paralysis Renal (kidney) Failure Coma Major Burns As defined by the policy. May vary by state. Exclusions & limitations apply. Covered Conditions and Definitions Simplified Critical Illness

24. n When you are diagnosed or require: Cancer in-situ Bypass Surgery n Pays 10% of the maximum benefit for Angioplasty As defined by the policy. May vary by state. Exclusions & limitations apply. Pays 25% of Maximum Benefit

25. Return of Premium If you die while your policy is in force, you can receive: n 100% of the premiums paid minus any claims or n The benefit amount (if from a covered condition) Death Benefit

26. Optional Benefits In the event you survive and do not have a covered condition, you can receive 100% of the premiums you’ve paid at age 75 The Return of Premium rider provides increasing percentages beginning in the 5 th year. Return of Premium Rider

27. Optional Benefits n Spouse Rider – can purchase any amount not to exceed primary insured n Children’s Rider – amounts of $5,000 or $10,000 n Waiver of Premium – total disability, 6 month elimination period – retroactive benefits n Accidental Death Benefit – any amount up to the maximum benefit amount

28. video

29. Personal Needs Analysis: n If you were diagnosed with cancer or suffered a heart attack or stroke, would you want all or part of your mortgage balance paid off? What amount would meet your needs? n In the event of a critical illness, would you want your credit card or other lines of credit paid in full? What amount would meet your needs? nIn the event of a critical illness, would you want to make sure that all of your other financial obligations are met? What amount would meet your needs? $ $ $ Total $

30. Underwriting – Simplified n Must Answer Questions “No” n Must Be Within Build Guidelines

31. Underwriting - Simplified Build Guidelines

32. Underwriting - Simplified n Tobacco Question - Has the proposed insured(s) used any tobacco or nicotine during the past 12 months?

33. Underwriting - Simplified Family History Have any two or more of the Proposed Insured’s natural parents, brothers or sisters, either living or deceased, been diagnosed with the same condition(s) from the following list: n Heart disease, stroke, diabetes, kidney disease or breast cancer prior to age 60? n Colorectal cancer or Alzheimer’s or Senile Dementia prior to age 75? n Any other same cancer in both relatives prior to age 55?

34. Underwriting - Simplified n MIB n Telephone Inspection n Telephone Inspection every 25th App

35. Critical Illness Covered Conditions n Cancer n Heat Attack n Stroke n Major Organ Transplant (UNOS) n Benign Brain Tumor n Motor Neuron Disease n Advanced Alzheimer's n Heart Valve Replacement n Major Burns n Coma n Deafness n Kidney Failure n Blindness n Aortic Surgery n Loss of Speech

36. n Cancer in situ – 25% - $25,000 maximum n Bypass Angioplasty – 25% - $25,000 maximum Critical Illness Covered Conditions

37. Underwriting Critical Illness Similar to Preferred Life Some Differences

38. Mortality vs. Incidence Underwriting Critical Illness

39. Your client is not eligible for CI if there is a prior history of: n Cancer (some exceptions)* n Diabetes (insulin dependent or uncontrolled) n Heart Disease, including heart attack, angina, vascular surgery or angioplasty n Major Organ Transplant n AIDS, HIV+ n Alcohol Abuse, treated within past 2 years n Drug Abuse n Stroke or Transient Ischemic Attack (TIA) n Kidney Failure or Disease (other than kidney stone) n Cystic Fibrosis n Hepatitis other than AMultiple Sclerosis n Muscular DystrophyHuntington’s Chorea n Permanent ParalysisSystemic Lupus Erythematosus n Alzheimer’s DiseaseAmyotrophic Lateral Sclerosis Underwriting Critical Illness *applicants with certain cancers, including skin cancers other than melanoma or certain early state cancers, may still be eligible for coverage.

40. Underwriting Critical Illness Occupational Consideration

41. Underwriting Financial Guidelines n 7 times earned income up to $250,000 n 6 times earned income up to $500,000 n Nonworking spouse: 50% of working spouse limit up to maximum of $250,000

42. Underwriting Critical Illness Build

43. Underwriting Family History Based on Immediate Family Members – Natural Parents, Brothers or Sisters

44. Underwriting Family History Has any Immediate Family Member suffered from Cancer (specify type), Motor Neuron disease, Alzheimer’s Disease, or other hereditary disease prior to age 65?

45. How do you Sell Critical Illness n Forget the Statistics n Doctors and good medicine created the problem n People survive today! 50 years ago they would have died n A Doctor created the Solution n You need to help the client with options to attach the dollars ex. Mortgage, replacement of income, etc. Personal Debt

46. Prospecting Your existing Clients are the Best Prospects Who Are Some Other Prospects?

47. Return of Premium Approach n When was the last time your car insurance gave you money back when you didn’t have a claim? n When was the last time your homeowners insurance gave you money back if you didn’t have a claim? n I have a special type of insurance that gives you all your money back. Would that interest you?

48. Presenting Critical Illness n Organized Presentation n Who do you know? n Are you covered? n Claims examples n Video n Consumer PowerPoint

49. Make It Affordable

50. If you knew you were going to be diagnosed with cancer in the next 6 months, would you buy this? How do you know you won’t?

51. Critical Illness Target Markets n Supplement to medical insurance n Mortgage Protection n Supplement to Disability Income n Business Market Key Person Loan Protection Buy / Sell Funding n Asset Protection

52. Mortgage Market n Do you have mortgage insurance? n Do you have the old kind of mortgage insurance or the new kind of mortgage insurance? n What do you mean? n The old kind of mortgage insurance pays off your mortgage only if you die. The new kind pays off your mortgage on death, but in addition, will pay your mortgage if you are diagnosed with cancer, have a heart attack or stroke.

53. Mortgage Market n Only 3% of mortgage foreclosures are due to death. 48% are due to a Critical Illness n Would you rather have a heart attack and lose your house or have a heart attack and lose your mortgage? n You and your family will be able to stay in your house even if the the worst happens. n If you had a goose that laid golden eggs, would you insure the goose or the eggs?

54. Critical Illness & Disability Income n You need Disability Income n Critical Illness does not replace DI n You need DI especially if you are disabled because of stress or a bad back.

55. Critical Illness & Disability Income A Car n DI is the brakes n CI is the air bag Critical Illness is there when you have the big crash with Cancer How They Fit Together

56. Critical Illness & Disability Income n Self Employed n Supplement to Group DI n Occupations Not Eligible for DI

57. What Would You Do If Your Employer Asked You To Take a 40% Pay Cut?

58. After going through Chemo therapy treatments for 5 or 6 months, will you want to go back to work as soon as you can perform the material and substantial duties of your occupation?

59. Business Owners n If you were diagnosed with Cancer, or had a Heart Attack, would there be more or less stress in your life as a Business Owner? n What is your bank’s policy for people diagnosed with Cancer who have demand loans?

60. What Would Your Banker Do? If He/She Heard That You Were Diagnosed with Cancer? n Double Your Line of Credit n Be Totally Unconcerned n Withdraw Your Credit Completely

61. If you were diagnosed with Cancer today, what would happen to your business?

62. You need to believe that without Critical Illness Insurance, all other aspects of a Client’s financial and personal plans could be jeopardized. Alphonso Franco

63. Keys To Selling CI n Organized Presentation n Passion n Start with your Existing Clients n Make it Affordable n Educate your Client on the need n Developed by a Doctor n Celebrity Stories n Study

64. Do you want to Know the Secret to selling Critical Illness?

65. n Critical Illness was only accepted by 3% of the market in England 10 years ago. n Now it is promoted by 99% of the same market. Peter Dodd Pegasus Life London, England November 1999

66. Good Meeting?