According to Kiplinger’s, talk-show host Larry King recently bought two life insurance policies and flipped them for about $1.4m, but isn’t happy about the sale and is suing his broker.

There are pitfalls to so-called “stranger owned life insurance” (”STOLI”). First, some states, like ND for one, prevent sales of life-insurance policies within five years of issuance if you’ve borrowed the money to pay the premiums. About 30 other states are considering two or five year waiting periods, according to the article.

Second, there can be tax implications for sales of life insurance policies, since the policies are often given preferential tax treatment. And don’t forget commissions you’ll pay to the brokers.

Moreover, life insurers can set limits on coverage based upon income and assets, so those selling policies might find it harder to get additional policies in the future.