You may want to consider other investment choices. Ask your tax advisor about any possible tax consequences of buying a life settlement. Typically, life settlements are offered to buyers at a discount from the death benefit. The discount is for the entire life of the policy, not an annual rate of return. An annual rate of return cannot be guaranteed.
Return depends on when the insured dies, and no one can predict a person's life expectancy.
A life settlement is not a liquid investment. Return on such an investment does not occur until the individual dies. If you are considering buying a life insurance policy settlement contract, you should know that insurance companies may contest death claims for policies that have not been in effect at least two years at the date of the insured's death.