Customer Reviews

Viatical Settlements: An Investor's Guide

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As an insurance agent and someone who has worked as an investigator your first step to either selling or investing in a viatical settlement is to read Viatical Settlements an Investors' Guide by Gloria Wolk. I have seen investors swindled and investment promoters jailed as a result of slick hyped up investments. Viatical settlements are similar to the Florida land deals of the sixties, you can make money or you can be easily swindled. By following the advice in Gloria Wolk's latest book you can be one of the educated investors who wisely and safely make money in the viatical settlement marketplace. If you don't plan on following the advice in this book you probably should find another investment vehicle for your money. It is a shame that one of the best investments to come along in years, which offers a humanitarian service is being made into a three ring circus which has caused investors to lose $200,000,000. However, like anything else education is the key and this book will fortunately give you the tools you will need to safely and intelligently invest in the viatical market.------- Frank Meyers-Shaker Hts. Ohio

This book is an absolute MUST for anyone involved with viatical settlements. I suspect that anyone who says otherwise is trying to promote ignorance for their own dishonest purposes. There is no more authoritative source on viatical settlements in print. The author educates the reader, and the book is extremely thorough, easy to understand, and is also well-researched and documented. I'm objective - I have no policy to buy or sell and I don't know the author or anyone affiliated with the book. Beware of those who may denounce this book, as odds are good they have a hidden agenda...

As one engaged in financial products and services and who has increasingly turned to viatical settlements as in investment option for our clients, I strongly recommend Gloria Wolk's book BEFORE purchasing a viatical contract. Viatical settlement contracts afford both a humanitarian AND financial reward to the investor. Ms. Wolk's book guides the reader through the many pitfalls a potential purchaser might encounter in this largely unregulated industry. As Ms. Wolk concludes, ,"if we keep investors safe, the industry will remain viable. If we keep investors safe, the industry will continue its phenomenal growth. If we make these efforts today, thousands of patients in the decades to come will benefit. They will be able to die with dignity because informed and caring investors gave them cash for the final days."

Despite a number of valid points being made by the author, unfortunately, this self published book falls short of being a serious reference for investors. Contradictory statements are found throughout the book. As one example, on the inside front flap of the book jacket the author claims, "Thus, investors have lost in excess of $2 million in the short life of this industry." And on the back of the book jacket, "Yet investors have lost more than $200 million in the short life of this industry." Which is correct? The author seems to have a personal agenda against Life Partners, Inc. of Waco, Texas. Ms. Wolk refers to Life Partners as an illegal, unlicensed, non-legitimate company. Yet, Life Partners is licensed as required, by the State of Texas, where the company is domiciled. Further, Ms. Wolk barely acknowledges that Life Partners was awarded summary judgment by the US District Court of Appeals against the SEC, dismissing its' highly publicized case against Life Partners, Inc. The ruling in favor of Life Partners determined that viatical transactions as structured by LPI are not securities and are not subject to regulation by the SEC. District Court Judge Royce Lambert stated, "the SEC is unable to demonstrate that a triable issue of facts exists and summary judgment must be granted for LPI." Yet, Ms. Wolk claims that purchases of viatical contracts, based upon life expectancy estimates of LPI's reviewing physician, Dr. John Kelly, led to losses of more than $80 million for one Midwestern investment advisor's clients. Her footnote on the same page says, "b As told to the author by one of the principals." This seems a little too close to hearsay to be considered serious research. If this accusation were factual it could constitute fraud and certainly would not have been overlooked by the SEC's intense, multi-year, million dollar plus investigation into LPI's business activities. The author cautions potential investors to choose a "legitimate company". She names several which are "deemed to be legitiment" but contradicts herself again, because under her criteria for selection she says the company must be a direct seller to investors, rather than through a marketing company. Yet, of the six companies listed, five have separate "branches--investor arms" as she calls them. Two of those five are viatical brokers, not funding companies as defined by current regulations, and as such are prevented from buying policies directly from viators, so it makes sense that they would have to establish a funding source to comply with the law. However, if a broker's responsibility to the viator is to get them the highest price for their policy, it seems a conflict of interest that they would also have a captive marketing arm to investors. As far as the other three companies are concerned, the reasons listed for separate investor arms don't seem to hold water. Another contradiction is found in the chapter by Philip Loy of American Viatical Services where he states, "Our company, which provides tracking services for companies and individual investors, provides monthly contact with individuals whose life expectancies are less than 12 months, and semi-monthly for individuals with life expectancies of less than 12 months." Which is it? To be fair, this example and the earlier one noted above, could be a typographical error. However, since there are many such examples found throughout the text, a reader also has to question the accuracy of the research work. In addition, the many footnotes and end notes found throughout the book are distracting and sometimes do not tie in well with the text intended. This reader found many errors in the index. The author also missed the opportunity to draw a distinction between a viatical settlement funding company and a viatical settlement broker, as defined by most states which have regulation, by failing to list either defination in the glossary. This might appear to be nit-picking on the part of this reader but investors could be confused by the differances between a viatical broker, funding company, or the marketing representive showing them the investment. The author makes a number of valid points concerning risk and marketing claims but falls short on establishing the book as a serious reference on viatical settlements for investors. Save your money on this one. You will be better served by joining the American Association of Individual Investors, Atlanta, GA, and requesting the recent article "Unusual Investments: A Look at Viatical Settlements" by Stanley M. Atkinson and James H. Gilkeson. Mr. Atkinson and Mr. Gilkeson are professors of finance at the College of Business Administration, University of Central Florida, Orlando.

This author holds herself out as an expert but lacks objectivity, which leads me to question the accuracy of her research. The book uses numerous footnotes which are distracting and sometimes poorly tied to the text intended. In some cases, there is no tie in at all. Some of the research reminds me of what you might see in a news tabloid, possibly okay for a newspaper article, but not acceptable for what is supposed to be a serious reference book. Seriously, although this book is the first that I'm aware of on the subject, it wouldn't have a chance getting published by an investment publishing house in it's present form. It seems to me that since the author had to pay to get this book printed, (it's self published) she would have paid a qualified editor to help her write and put it together. On a positive note, kudos to the printer and graphic designer. The cover is attractive and the hardcover printing is well crafted.

Please get the word out to investors that these type of investments are VERY risky. Although there are probably legitimate viatial companies and viatical brokers out there - I have yet to find any. This book is very informative and explains an industry that not too many people know about.

The book is so poorly written it does not help the reader at all. There are hundreds of typo's and, worse, the writer does not identify most sources for the material she writes.