Well, it would be an investment with an uncertain payout at some undetermined point in the future. The person flipping their policy could be 55 and live to 85,

Well, it would be an investment with an uncertain payout at some undetermined point in the future. The person flipping their policy could be 55 and live to 85, and your investment is tied up for 30 years awaiting the payoff. The risk would come if these are term life insurance policies, as in, the person might die within the term of the policy, or might outlast it and not pay out.