I have a friend who is interested in putting money into a company that sells what they call life settlements. Basically they buy universal life policies for less than the death benefit and then hope the policy holder dies before the life settlement companies predetermined "life expectancy". They are quoting him historic returns of 14.35% annualized ROI for the past 14 years. I have told my friend about another aquaintance of mine that invested in something similar about 10 years ago and she lost her entire investment because the policy holders did not die when expected and she would have had to invest more money to keep the policies in force. He seems to want to invest his money in this scheme anyway and I wanted to see if anyone has any other advice or experience with these type of investements before he makes what I consider an extremely risky investment.
