Life Settlements usually involve buying other people’s life insurance policies, then collecting when they die. You usually buy a block of policies and the returns are basically determined by how long these people end up living. See this article in Bankrate.com by Jennie Phipps:
http://www.bankrate.com/financing/retirement/life-settlements-invest-warily/
Aside from the unsavory idea of buying insurance on people and waiting for them to die, there is always the potential for problems to occur; I feel it is risky to bet when someone will die; you just never know when all the group you bought the policies from decide to live forever. Anyway, know who you are investing with and do your due dilligence if you want to get into this.
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