When Viaticus, Inc. made its debut in 1994 as a subsidiary of CNA Insurance, the initial reaction to its unique financial options for people facing life-threatening illnesses was repulsion and reprehension. The concept of viatical settlements - which allow individuals facing a life-threatening illness to sell their life insurance policies to a third party for cash while they are still alive - was foreign to the audiences that could most benefit from them (medical case managers, home healthcare workers and those suffering from long-term illnesses).
Charged with communicating this sensitive but extremely useful service was Chicago-based Westerbeck Communications, best known for its expertise with marketing "intangible" concepts like product reputation, company agendas and industry issues.
For Viaticus's special services to be understood, the Westerbeck team, led by Tim Westerbeck, relied on a video-focused campaign that educated its audiences on why and how Viaticus could be a viable option for those who become seriously ill with long-term illnesses like AIDS, cancer and Alzheimer's disease.
Launched in 1996, the seven minute testimonial-style video called "Stability in Time of Crisis" provided compelling profiles of individuals struggling with life-threatening illnesses and how Viaticus's financial services added to their quality of life.
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Customizing Your Video Message
More than 150,000 copies of the Viaticus video were distributed and customized as:
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"The need to educate was critical. We couldn't come across as selling a product like a car, we had to sell [Viaticus] as a useful option. We had to build trust, confidence and credibility," said Westerbeck of the video campaign that took $150,000 to produce.
Primarily targeting "trusted intermediaries" like medical case managers, social workers, attorneys, accountants, human resource professionals, insurance agents and home healthcare workers, the video's message evolved as the media relations and advertising campaigns picked up momentum.
Grabbing high-profile airtime from shows like "60 Minutes" and business ink from the New York Times and Business Week brought about broad-stroke awareness. And a $200,000 media buy in mass publications like USA Today and The Wall Street Journal as well as trades that targeted physicians, case managers and lawyers, also introduced Viaticus's audiences to viatical settlements.
This media push impacted the video's focus. "Due to the media exposure [viatical settlements] generated, we had to shift our marketing posture from 'We'd like you to consider Viaticus' to 'You probably heard about Viaticus, here's how it works,'" recalled Westerbeck of the campaign's evolution.
In addition to building awareness of Viaticus, the Westerbeck/Viaticus campaign also had to create acceptance for viatical settlements by making the services and industry more mainstream. To accomplish the latter, the campaign had to get political.
Prior to Viaticus, an informal network of small companies and brokers - primarily serving the AIDS community - handled viatical transactions. But these sources lacked the financial resources to ensure timely and fair payouts to patients. Backed by CNA Financial Corp's funding, Viaticus emerged as a stable force in the viatical settlement industry. And, as such, the onus fell on the company and the campaign to legitimize viatical services through two aggressive initiatives:
- Federal and state lobbying campaigns to regulate the viatical settlements industry so that viators (those suffering from long-term illnesses) would not be vulnerable to fraud. The CEO and other Viaticus spokespeople testified before Congress and engaged state senators to push through legislation that would standardize how viatical settlements could be paid out.
- An IRS campaign aimed at modifying the taxing classification of viatical transactions so that viators would not be taxed on their payouts.
These efforts eventually paid off. A federal bill was passed last year regulating the viatical settlement industry on a national level and currently about 20 states are regulating the transactions as well. And, earlier this year viatical settlements were given a tax-free status.
Looking Ahead
Now that Viaticus and its industry has enjoyed some broadbase awareness, the marketing focus is on expanding its message to a more mainstream audience like financial planners and employers, according to Steven J. Arenson, VP of Viaticus. Healthcare efforts will also expand to garner "halo" endorsements from organizations like the American Hospital Association and the Case Management Society of America, where Viaticus would be the exclusive provider of viatical services to their members. (Westerbeck Comm., 312/832-1676; CNA Insurance, 312/876-5232)
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Comparative Benefits of Viatical Settlements Viatical settlements are one of a select few financial options available to individuals facing a life-threatening illness. The only other major option it can be compared to is the accelerated death benefit (ADB), which is included as a rider in a small number of life insurance policies. The key differences between the two options are:
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