Why Do Viatical Brokers Use Call Centers?

The most obvious way of ensuring the mounting costs of life are paid even after death, is through the payout that life insurance policies can bring. Life insurance is a simple concept; you pay a monthly premium (normally through an employer) which goes into a pot held by an insurance company. Upon your passing, your designated beneficiary or next of kin will receive a designated payout, known as a death benefit.

Ordinarily, this money is spent on the cost of care that was accrued before passing, and potentially on the funeral. However, with the rise in pre-paid funerals, and the possibility of a policyholder passing away through accident or spontaneous illness, the death benefit can be seen more as more of a redundancy. Furthermore, the life insurance policyholder, who has been paying the monthly premiums, doesn’t even get to see any of the payment that they have been contributing to. For these reasons, and more, holding a life insurance policy is starting to become less popular, and alternatives have started to gain prominence.

Viatical Settlements

 

The viatical definition is a little more complex than that of life insurance, but it’s an option with more tangible results. However, there are also more prerequisites to pursuing this option that need to be in place. Firstly, a viatical settlement can only be sought after by a person who already has a life insurance policy. The second, and arguably most important, aspect of a viatical settlement is that it can only be acquired by someone with a chronic or terminal illness that will render them either completely incapacitated, or deceased, within 24 months.

Yet, this is the reason why they are growing to be more popular. The way a viatical settlement works is this: an ill life insurance policyholder decides to sell their policy through a viatical broker (such as the American Life Fund.) This broker finds a third party “beneficiary” to take on the policy (continuing to pay monthly premiums and receiving the death benefit upon the original policyholder’s passing) in exchange for an upfront lump sum. The cash value of this is more than the cash surrender value that the insurance company would pay, but less (American Life Fund aims for 70%) of the death benefit.

For ill policyholders who want to pay for end-of-life care outright, or simply want to tick off items from the bucket list in the limited time they have, a viatical settlement is an attractive option.

There is also the option of life settlements, which are similar to viatical settlements except the policyholder need not be ill. In these cases, the cash surrender value is a benchmark that the life settlement company aim to offer more than as payment.

Getting The Word Out

 

With only 60% of Americans even having life insurance, and only a percentage of them being happy with their policies, there is a deficit of information in the public consciousness surrounding all options for post-mortem financing.

It’s not a stretch of the imagination to see why viatical companies would be willing to use outbound call center solutions to this lack of information. With nearly half of Americans lacking a life insurance policy, then viatical settlements (which are essentially a sale of a policy) are simply not well-known in the U.S., and as such they need advertising just like any other insurance or policy. If you receive a call regarding the sale of life insurance going forward, it may be worth taking it. Furthermore, if you already have a policy and receive a call regarding viatical settlements, it might just be one worth taking as well.