I do not know if it's coincidence, but a front page-linked
article in today's NY Times online has some comments on
this:
http://www.nytimes.com/2006/12/17/bu...rtner=homepage

(If the link above does not take you right to the article,
then online registration is free and subsequently will give
you access to it.)

deanlindsey[at]earthlink.net wrote:

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My alarm bells go off looking at this.
A life settlement typically meant you are buying the payoff of a policy
on someone else's death. If the insured is 90, and in good health, you
can look at actuarial tables to find your expected return. Not to sound
morbid, but the best return occurs if the insured died shortly after the
purchase. The risk to you is the variability of the date of death of the
insured. If he lives to 105, your return was likely approaching a bit
over the risk free rate.

The bonded settlement page I found
http://www.profinancialgroupinc.com/index.php?s=15 seems to offer a
different situation, a guaranteed payout at a pre-determined time.
It would seem to me, the only risk here is the risk of default,
otherwise how can they offer "15-25%" annual returns?

I hope someone with actual experience with this product replies. But my
gut says 'too good to be true'.
JOE

I am considering making an investment in "bonded life settlement".
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