FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION AIG Accident & Health Product...

FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION

AIG Accident & Health Product Solutions

September 28,2015

Paul GonzalesDirector, National Sales SupportAIG Life Brokerage | Accident & Health | AIG Life and Retirement 713 - 831 - 6208 [email protected]

Policies issued by American General Life Insurance Company and The United States Life Insurance Company in the City of New York, members of American International Group, Inc. (AIG)

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Accidents aren’t planned, but happen all the time. Financial impact can be devastating

About 60% of bankruptcies are medically related(Medical Bankruptcy in the US, 2007. Results of a National Study, the American Journal of Medicine, August 2009)

About 1 in 9 Americans seek medical attention for an injury each year.(National Safety Council, Injury Facts – 2011 Edition. Not all injuries will result in a benefit payment)

The economic impact of unintentional injuries in 2009 amounted to about $2,300 per person.

(National Safety Council, Injury Facts – 2011 Edition. Not all injuries would result in a benefit payment)

Over 26 million people were treated in hospital emergency rooms for injuries.

(National Safety Council, Injury Facts – 2011 Edition. Not all injuries would result in benefit payments.)

Approximately 49.2 million visits to physician offices were due to unintentional injuries.

(National Safety Council, Injury Facts – 2010 Edition. Not all injuries would result in benefit payments.)

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“No one can predict when or where an accident will happen — or what the related costs will be.”

There were 133 million emergency room visits in 20131

Injuries that occur every2…

• 7 seconds at work

• 2 seconds for workers off the job

• 2 seconds at home

• 3 seconds via non-motor vehicle

57.1% of US bankruptcies are due to medical expenses 2

1 2013 Fast Facts on US Hospitals, Health Forum, an affiliate of the American Hospital Association2 National Safety Council, Injury Facts, 2015 Edition

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What is an Accidental Injury?

Activity Non accidental injury Accidental injury

Shoveling snow

Straining back or herniating disk from weight of snow

Slipping on ice breaking arm

Playing baseball

Tearing rotator cuff from wear and tear of repetitive pitching

Getting hit on the wrist by a ball, resulting in a fracture

Jogging Straining or tearing ligament from regular running routine

Misstepping, having a fall and fracturing an ankle

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AG Accident Choice Plus® – Why is this an Opportunity? Stay tuned to learn more!

Accident Expense Plus® – Customized coverage for individuals and families

EmergencyCare Plus® - Innovative Solution for Accidental Injuries

Accidents may happen but Now you have Several Solutions at your Fingertips!

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Before we Begin, What is Available for You to Sell?


AG Accident Choice Plus®

Supplemental Accidental Injury Insurance

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Key Features of AG Accident Choice Plus

AG Accident Choice

PlusAccidental benefit amounts of $5,000, $10,000, $15,000, $20,000, $25,000

3 deductible options: $100, $300, $500

Three riders available: Critical Illness: Accidental Death & Dismemberment: Accidental Disability Income:

Individual or family coverage available (children covered through age 25)

Issue age 0 – 64, Guaranteed renewable to age 65

Unisex rates with 5 age bands

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Benefits for both You and Your Clients

Benefits to the You

Guaranteed issue – no underwriting, no medical exam required

Customizable policy – critical illness and other riders available (varies by

state)

Multiple payment options - including recurring credit card and EFT

Benefits to your Clients

Dollar-for-dollar reimbursement - up to the calendar year maximum

No coordination with major medical – pays benefits related to accidents regardless of

other health coverage

No network restrictions – access any hospital, physician or medical facility

Pays money directly to clients – not medical providers

No waiting period to use benefits – submit claims immediately

No lifetime limit – no matter how many accidents client has

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AG Accident Choice Plus

Calendar year deductible, not per claim Must seek care within 72 hours of accident Covered accident expenses up to 45 days after accident include but are not

limited to:– Emergency Room

– Hospital

– Urgent Care Center

– Surgery

– Major Diagnostic Exams

– X-Rays

– Physical Therapy

– Physician Charges

Benefits do not coordinate with client’s major medical coverage

No occupational exclusions except professional athletes

24 hour coverage

Benefit Payment Information

Coverage is available for spouse and/or children under same policy if primary insured is covered. Spouse and children may have different benefit amounts for critical illness rider provided coverage for each does not exceed coverage of primary insured.

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AG Accident Choice Plus Riders

Critical Illness

None. If you are diagnosed with a critical illness, you

receive a lump sum benefit.

Heart attack, invasive cancer, stroke

Spouse and children may be included if they are covered under the base policy AND if primary insured has opted for

this rider

One time lump sum payout of $5,000 - $50,000 in $5,000

increments

6 simple questions on the application

No coordination with other insurance coverage. Benefits are paid in addition to those received from other health

insurance policies

None.

N/A

Spouse and children may be included if they are covered under

the base policy AND if primary insured has opted for this rider

One time lump sum payout of up to $50,000 (per unit) for primary$25,000 (per unit) for spouse, and $12,500 (per unit) for children. Units or spouse and/or children must be same as primary’s units (max of 5 units)

Automatic - no questions, no underwriting

No coordination with other insurance coverage. Benefits are paid in addition to those received

from other health insurance policies

Accidental Death & Dismemberment

Accidental Disability Income

None.

Accident as defined/covered in base policy which causes insured to become totally disabled and unable to work. Doesn’t cover disabilities due to sickness.

Primary insured only – must be 18+ years or older and work ≥ 30 hours

a week

Benefit amount is based on income. Minimum monthly benefit available is $500.

Simple – two questions to qualify on the application

No coordination with other disability insurance coverage such as workers compensation or social security. Benefits are paid in addition to those received from other disability insurance policies.

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AG Accident Choice Plus Price Comparison

Male, age 30, no nicotine, a price comparison of an all base policy versus adding on the Critical Illness Rider benefit. State of Illinois.

Benefit Deductible Annual Premium Critical Illness

$10,000 $500 $342 $0

$10,000 $500 $393 $10,000

$10,000 $500 $418 $15,000

Benefit Deductible Annual Premium Accident Only DI

$10,000 $500 $342 $0

$10,000 $500 $519 $1,000/monthly

$10,000 $500 $608 $1,500/monthly

Male, age 30, no nicotine, earning $35,000 annually, comparing an all base approach versus adding on the Accident Only Disability Rider benefit. State of Illinois.

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Case Study

How it works:

Lisa’s fall = head injury + broken leg in 2 places

Injury services = ambulance, ER visit, x-rays, medication, CT Scan, physician charges, surgery, cast, & PT

Injury bills = $9,500

Total out- of- pocket expense = $500

Not an actual case, and is a hypothetical representation for illustrative purposes only.

Client Profile: Lisa 33 years old, self employed web developer

Problem Expensive medical insurance for self employed individuals

Lisa purchased health insurance policy with a low premium and $10,000 deductible

Lisa supplemented major medical with AG Accident Choice Plus for $10,000 per calendar year accident benefit with a $500 deductible. Her premium is less then $33 a month for the base contract.

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AG Accident Choice Plus – A Solution to the Realities of Today

Dollar-for-dollar reimbursement

No coordination with major medical

No network restrictions

Customizable riders

Pays money directly to clients

No waiting period to use benefits

No lifetime limit

Guaranteed issue


Accident Expense Plus®

Supplemental Accidental Injury Insurance

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Imagine an economical and intelligent way to protect against health care costs related to accidents

That’s Accident Expense Plus

Rapid reimbursement for a wide variety of costs related to covered accidents

Can help cover deductibles, co-pays and other expenses not covered by primary major medical plan

Pays benefits regardless of other coverage in place

Can also provide a one time lump sum payout if diagnosed with any of three major critical illnesses1,2

Accident Expense Plus can provide benefits for a wide range of accident-related costs, from emergency room visits to physical therapy to diagnostic exams — even surgery.

The “plus” is an optional Critical Illness Rider that can pay a lump sum benefit if you’re diagnosed with invasive cancer, heart attack or stroke.

1.There will be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions.

2.The Critical Illness Rider is not available in all states. Please consult your agent or review the policy and outline of coverage for your state.

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Accident Expense Plus Policy Highlights

* The Critical Illness Rider is not available in all states. The minimum benefit is $25,000 in the following states: DE, IA, KS, OK, SC, TX, VT and WV.

Accident Expense Plus - A customizable and flexible policy with…

Accident benefit

amounts from $1,000 to $15,000

4 deductible options: $0, $100, $250,

$500

Critical illness rider

benefits from $5,000 to $25,000*

Individual or family

coverage available

Issue ages 0 to 64 and

Guaranteed renewable to

age 65

Benefits do not

coordinate with major medical

coverage

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How Easy is it to Qualify? Easier than you Think!

Accident coverage is guarantee issue

– There are no medical qualifications for accident coverage

– Individuals up to age 64 are eligible for this plan

Critical Illness Rider is simplified issue

– Accept/reject based on 4 application questions

Children are eligible for critical illness benefits*

Critical illness benefit amount is not tied to the accident benefit amount in the base policy

* Dependent child coverage not available in UT.

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Critical Illness Rider

None - If you’re diagnosed with a covered critical illness, you receive a lump sum benefit. It’s that simple.

Heart attack, stroke, invasive cancer

One time lump sum payout of $5,000, $10,000, $15,000, $20,000 or $25,000

Spouse and children may be included in the rider

Four simple questions on the application

The rider does not coordinate with other insurance coverage. Benefits are paid in addition to those received from other health insurance policies.

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Two Powerful Benefits, One Low-cost Solution

Accidental Injury Insurance

Critical Illness Insurance

Accident Expense

Plus

Dollar-for-dollar reimbursement :

■ Emergency Room

■ Hospital

■ Urgent Care Center

■ Surgery

■ Diagnostic Exams

■ X-rays

■ Physical Therapy

Lump sum benefit paid after

initial diagnosis for these

major critical illnesses:

■ Invasive Cancer

■ Heart Attack

■ Stroke

An affordable supplement to

major medical insurance

■ Pays benefits regardless of other coverage

■ Makes payments directly to your client

■ An ideal supplement for high-deductible major medical plans

+ =

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Accident Expense Plus Price Comparison

Male age 30, no nicotine, a price comparison of an all base approach versus adding on the Critical Illness Rider benefit. State of Arizona.

Benefit Deductible Annual Premium Critical Illness

$10,000 $500 $255 $0

$10,000 $500 $315 $10,000

$10,000 $500 $404 $25,000

$15,000 $500 $264 $0

$15,000 $500 $324 $10,000

$15,000 $500 $413 $25,000

Something to Consider - Adding $5,000 (a 50% increase) of base benefit results in an increase of only 2.5% - 3.5% to the annual premium.

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Accident Expense Plus – A Case Study

The Problem

Jack, 16, rising basketball star who needed an out-of-network specialist of their major medical plan

John and Samantha are proud parents — their son Jack is an

outstanding student who is also becoming a highly recruited basketball

star. When he fractured his wrist taking a hard foul in the playoffs last

year, the family’s doctor referred him to a specialist outside their major

medical carrier’s network.

The Solution

Thanks to the family’s Accident Expense Plus policy, John and Samantha were promptly reimbursed

for their out-of-network expenses and received additional benefits for the treatment and physical

therapy. Jack made a full recovery and is back on the court this season. His bank shot — and his

parents’ bank accounts — are as strong as ever.

Not an actual case, and is a hypothetical representation for illustrative purposes only.


EmergencyCare Plus®

Supplemental Emergency Injury Expense Insurance

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EmergencyCare Plus – A Cost Effective Alternative

Even with all the precautions we take to keep ourselves and our families safe, accidents sometimes happen. And, in addition to physical challenges, accidents can lead to financial difficulties as well.

EmergencyCare Plus is designed to provide benefits for a wide range of accident-related costs — from emergency room visits to physical therapy to family lodging.

EmergencyCare Plus helps protect your family against many of the unexpected financial burdens that an accidental injury can bring about, allowing you to better manage the costs and focus on getting your life back to normal.

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Benefits of EmergencyCare Plus

Delivers benefits for the injuries clients are most likely to need coverage for injuries caused by accidents while playing sports

Provides a death benefit if death occurs within 90 days of a covered accidental injury

Pays all benefits directly to you (unless payment is assigned to a healthcare provider), regardless of what is covered by major medical health plans

Issue ages 18 to 64 and Renewable to age 75

No APS, parameds, or exams

Spouse and child(ren) coverage available

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Why EmergencyCare Plus?

EmergencyCare Plus pays benefits for the injuries you’re likely to need coverage for, including children’s sports injuries

Supplements existing coverage – benefits paid directly to the insured – regardless of what’s covered by other sources

Hospital Cash Rider

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EmergencyCare Plus Base Benefits

Accidental Death: $25,000 Primary; $5,000 Spouse; $1,000 Children

Dismemberment: up to $15,000 Primary; $7,500 Spouse; $2,500 Children

Emergency Treatment: $50

Accident Follow-up: $15 per treatment

– 3 treatments per accident

Burns: up to $2,500 for burns to 30% of the body, or more

Ambulance: $75 Ground; $500 Air

Dislocation: up to $1,700 for open reduction; $450 for closed

Family Lodging: $50 per day

– 30 days maximum

Fracture: up to $2,000 for open/compound fracture; $1,000 closed

Lacerations: $50

Diagnostic Exams: $75

Paralysis: $2,500 Quadriplegia, $1,500 Hemiplegia; $1,000 Paraplegia

Physical Therapy: $10/Treatment

– maximum of 10 treatments

Prosthesis: $250

Surgery: up to $400

Transportation: $150 Round Trip

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EmergencyCare Plus Basics

Coverage Options

– EmergencyCare Plus Family

– EmergencyCare Plus Individual

– EmergencyCare Plus Individual/Spouse

– EmergencyCare Plus Individual/Children

Hospital Cash Benefit Rider

– Pays insured funds towards hospital admission, confinement, intensive care, and rehabilitation.

EmergencyCare Plus

Rider

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EmergencyCare Plus Plan Package Options*

All three plans include:

*Packages different in the state of Florida, see ECP Florida Client Guide for more details

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EmergencyCare Plus Package RatesIncludes Base Policy & Hospital Cash Rider

Anticipating the unexpected with EmergencyCare Plus

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As a Reminder,

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Questions?

Thank You!

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Disclosure Information

IMPORTANT NOTE: All benefits payable are subject to the terms and conditions of the policy,

including benefit durations, limitations and exclusions. Not all benefits and exclusions apply in

every state. Please consult the policy form and outline of coverage for details. There will be a

charge for each rider selected. See the rider for details regarding the benefit descriptions,

limitations and exclusions. Guarantees are backed by the claims-paying ability of the issuing

insurance company. Comprehensive medical coverage may be required in some states in order to

apply for or maintain this coverage.

Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 04120, 11125, Rider Form Number 04025, 11125, 11126, 11127 except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Number 07120N. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features may vary by state.

FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION AIG Accident & Health Product...

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Transcript of FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION AIG Accident & Health Product...