The document discusses the financial risks associated with health crises, highlighting that traditional health insurance often does not cover indirect costs and may lead to bankruptcy. It presents a case study of Dr. Howard Rocket, who faced significant expenses due to a stroke, totaling over $3.5 million in economic losses, exacerbated by the lack of critical illness insurance. Critical illness insurance is proposed as a solution, providing immediate financial support upon diagnosis of covered conditions without restrictions on their use.

1. Critical Illness Insurance Because saving your life shouldn’t cost your life savings

2. Hal Schwartz The Del Mar Group, Inc. Dr. Howard Rocket, DDS

3. Despite Your Best Efforts . . . You may face a gap in your financial security Death Lost Wages Long-term Care Health Costs Uncovered Expenses

4. What really happens in a health crisis? Medical care Co-pays Deductibles Uncovered expenses Experimental drugs or treatments

5. What really happens in a health crisis? Economic Impact Lost wages Routine expenses Additional household expenses Unmet financial goals

6. What really happens in a health crisis? Rehabilitation Long-term care Physical therapy Psychotherapy Occupational therapy Home remodeling Personal help Adaptive equipment

7. What really happens in a health crisis? Almost half of all consumer bankruptcies are due to medical expenses* 75 percent of those bankruptcies occurred even though the consumers had health insurance coverage!* *Harvard Law School, 2005.

8. The High Cost of Getting Sick Average cost of a cancer diagnosis: $146,000 per patient* Over 65% of cancer related expenses are indirect, and not covered by traditional insurance.* *American Cancer Society, Cancer Facts & Figures, 2005

9. Each year, about 5.5 million sufferers will survive a stroke, but many will have permanent disabilities* Risk of Illness and Disability *American Heart Association, Heart Disease and Stroke Statistics 2007 Update

10. Risk of Illness and Disability Of the 15.8 million Americans who will suffer a heart attack this year . . . 70 percent will survive* *American Heart Association, Heart Disease and Stroke Statistics 2007 Update

11. Of the 1.5 million Americans who will be diagnosed with cancer this year . . . 60 percent will live at least five more years.* Risk of Illness and Disability *American Cancer Society, Cancer Facts & Figures, 2005

12. Each year, over 25 million Americans survive a heart attack, stroke, or cancer. Risk of Illness and Disability *American Heart Association, “Heart Disease and Stroke Statistics,” 2007; American Cancer Society, “Facts and Figures 2007.”

13. A Real Case Study Dr. Howard Rocket Author, “A Stroke of Luck”

14. Where I went wrong . . . Cancelled my disability income insurance . . . A $2.8 million blunder. Didn’t have Critical Illness Insurance . . . A $710,000 mistake. Total net wealth reduction to date: $3.5 million and counting

15. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount Renovations and Alterations to Home Hospital Bed Wheelchair Cane Customized Ramp Alterations to Shower Transfer Bench Wall Grab Bar Toilet (raised) Dining/Kitchen Tables (raised to accommodate wheelchair) Entrances to Rooms (widened to accommodate wheelchair) AFO (Swedish-made leg brace: $1,500 plus additional AFO at $500) $180,000 Transportation and Vehicle Modifications Taxi ($30/day for 18 months) Driver and car (50,000/year plus cost of larger vehicle for 36 months) Canes story and WheelTrans vs. own van - TYPE A personality $ 8,100 $290,000

16. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount Medical Necessities Prescriptions (ongoing and possibly increasing for the rest of his life Dental (on going work estimated at $30,000) Glasses $195,000 Incidentals Family Meals at Hospital Hospital Parking $2,500 $2,500 Post-Stroke Costs Post-stroke ongoing costs – miscellaneous items Dental costs – explain reason $32,000

17. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount Total Incurred Expenses $710,000 Loss of Earned Income 9 years (20k per month x 9 yrs) $2,800,000 Earned Active Income (Pre-accident earnings – average 30k/month) $ 0 Total Economic Loss NET WORTH REDUCTION $3,510,100

18. Toward the Future With advancements in health care, more patients will survive . . . And associated costs will go up.

19. What’s the Solution? “ Net Worth Reduction Plan” Deplete your savings and deplete your retirement accounts Liquidate your estate Go into debt Bankrupt your family Go without necessary treatment or care

20. A Better Solution . . . Critical Illness Insurance Created 20 years ago by Dr. Marius Barnard: “ Medical science can save lives, but it can't salvage lost bank balances. In other words, we'll keep you alive, but we won't provide the money to support you.”

21. Long available abroad: South Africa United Kingdom Canada Australia Japan Now . . . the United States

22. What Critical Illness Insurance Does Immediate pay-out upon confirmed diagnosis of a covered condition Absolutely no restriction on how funds used No impact on other benefits, such as health insurance, Medicare, etc. Benefits are income-tax free.

23. Do You Feel Lucky? Out of every ten people who reach age 65 . . . At least 7 will have experienced stroke, cancer, heart attack or some other covered condition.

24. Paying for Your Illness For every dollar spent, you’ll need to earn: Self-insurance $ 1.35 Debt $ 1.75 Liquidate assets $ 2.00 Critical illness insurance $0.20

25. So what will it be? Net-worth reduction OR Critical Illness Insurance

26. Peace of mind . . . Nothing can make a health crisis easy . . . But critical illness insurance can ease the way to recovery.

27. Because saving your life shouldn’t cost your life savings Life Insurance Disability Insurance Long-term Care Insurance Health Insurance Critical Illness Insurance

28. Questions?