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My wife is taking her pension as a lump sum and a financial planner is recommending placing it with a company called the Life Settlement Network which purchases life insurance policies at a discount. The return on this investment would be 11% per annum if paid on a monthly basis or 16% per annum if left for four years. Does anyone have any experience with this type of investment? Thanks for your help.

Why do you need life insurance at all? You really haven't given us enough information to give you a good answer.

Do you still have kids at home that would suffer financially with the death of either of you? If so then you probably need insurance to cover them.

Do you have any income, the loss of which would financially devestate your wife (and kids)? Then you probably need insurance.

Are you on a pension? How much of your pension would go to your wife if you die? If none, you probably need insurance. If some, then your insurance needs are not as great...if effect, you're self-insured.

I think there's an insurance test you can take somewhere here in The Motley Fool...that helps you determine whether you need it or not. Can anyone point jmacker in the right direction?

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