Speaking of life insurance... I have a client who is an insurance broker, and also sells investments. One of the investments is in life insurance policies.
The fund managers offer to purchase life insurance policies of terminally ill, or people who are close to death. For example, they will buy a $1M policy for $250K because the holder cannot make the payments, or needs the cash or whatever reason. The fund manager continues to make the premium payments & when the holder dies, the fund gets the $1M which is split among the investors proportionately.
The advantage is to purchase a policy of someone is as close to death as possible, so there aren’t that many premiums to pay - lower costs & more profits.
They make a killing. No, seriously, it is a real investment.
Sort of creepy though.
I’ve actually heard of that before.