This is common. Even for prudential savings 25 years for instance take 13 years to break even.
The net amount receivable at the end of 25 years is 60k but the gross amount of the total investment is $70k+. The earnings for me in the 25 years is a mere $5k, after factoring the time value of money, I am better of with investing in stocks that pays yearly dividends.
The obsene amount of course is to pay for 6 continuous years of commission for the agent and the companies operating and admin expenses including brokerage services provided and underwriting of your polices.
Anyway if you are buying a lifetime or a termed policy, you are already assumed to be ABLE TO commit for that period of time. If you friend is thinking of cashing out, chances are he/she is not ready due to the huge amount take up or that she just hasn't had the financial ability to even commit for such long term plans.
My suggestion is for him/her to invest on the amount relative to the current earnings of your friend. When he/she increase earnings subsequently, he/she can add on to the amount saved. Of course that have to depend whether is the policy flexible to allow modification of amount invested otherwise take up another investment.
This kind of life policy usually have either just the usual health policy or it comes with the investment. You and your friend need to understand the choices of products and the financial capability before making any decision to purchase such products.
