59 A third-party broker has purchased life insurance contracts from the original policyholders. The broker now offers to sell these contracts to a hedge fund. An analyst notes the following characteristics of these contracts:

• Characteristic I: The surrender value offered to the insured individuals is high compared to other similar policies.
• Characteristic II: Premiums payable on the policies are low compared to the relatively high risks of terminal illness faced by many policyholders.

Which of these characteristics would most likely be attractive to the hedge fund?