AN EVOLVED APPROACH TO LIFE SETTLEMENTS FOR THE BEST FINANCIAL ADVISORS.
Enabling wealth management professionals at the most highly regarded firms in the country to confidently monetize, for maximum value, older clients' unwanted and surplus life insurance.
A DIFFERENTIATED, HIGH VALUE SOLUTION
Making a life settlement a rational option for top wealth advisors with clients who have life insurance that they no longer want or need.
01
Professional Execution
We are capital markets professionals with unmatched experience in the market for in-force life insurance and with top wealth management firms since 2016
02
Effective Price Discovery
We deploy the most effective price discovery process for this inefficient, asset constrained market, consistently generating the highest possible winning bids
03
Rational Fees
We receive a fee of 7.5% of the value of the transaction - winning bid less surrender value; when we work with life insurance partners, we typically split a 10% - 15% fee
04
Highest Net Proceeds
The combination of our higher winning bids and lower compensation, our average transaction yields 1.8x the proceeds that competing solutions generate
EXPERIENCE, VALUES, discipline, RELATIONSHIPS
Simply, the best at what we do
We are capital markets professionals with extensive experience with institutional buyers of in-force life insurance, first for seven years with a PE buyer and since 2016 enabling top wealth management professionals at RIAs, trust companies, and sophisticated life insurance advisors to confidently maximize the value of their clients' unwanted and surplus life insurance.
Founded in 2016
Deep capital markets and life settlements experience
Extensive experience working with top financial advisors and top firms
Uniquely effective, efficient price discovery process
WHY IT MATTERS
AN UNDERUTILIZED OPPORTUNITY TO DELIVER SUBSTANTIVE SERVICE WINS
01
Rapidly evolving wealth management landscape
Leading wealth management firms are increasingly recognizing the need to evaluate clients’ life insurance as part of the financial and estate planning processes.
This process identifies policies whose initial protection or estate planning purposes are no longer relevant or cost-effectively achieved, especially among older policy owners.
02
Unwanted life insurance is an opportunity
85% - 90% of permanent life insurance is forfeited before it pays a death benefit - 40,000 HNW/UHNW >72 forfeit $75B each year - representing a significant opportunity for conscientious advisors to deliver a high-value service wins and organic AUM growth with a sale of an unwanted or surplus policy.
03
Responsible means to monetize those policies
1908 has built the only institutional-quality process to sell (settle) these policies to institutional investors, serving many of the country's most highly regarded RIAs, life insurance advisors, trust companies, and other fiduciaries, delivering an average of 28% of the face value of 10x the surrender value of those unwanted policies.
Rebalancing charitable trust
85 year old healthy male
$350 billion RIA
$12,000,000 GUL
$5,300,000 winning bid
$4,770,000 net proceeds
Change in beneficiaries
91 year old healthy female
Large national wirehouse
$754,000 GUL
$437,400 winning bid
$404,595 net proceeds
Simply no longer wanted policy
73 year old healthy male
$10 billion RIA
$1,500,000 GUL
$130,000 winning bid
$117,500 net proceeds
Illiquid trust
85 year old healthy male
$10 billion RIA
$2,000,000 UL
$200,000 winning bid
$185,000 net proceeds
Unnecessary key man policy
51 year female w/ multiple myeloma
$30 billion RIA
$5,000,000 convertible term
$900,000 winning bid
$832,500 net proceeds
Adjustment of life insurance portfolio
91 year old healthy male and female
$350 billion RIA
$9,800,000 GUL
$4,300,000 winning bid
$3,977,500 net proceeds
Illiquid charitable trust
85 year old healthy female
$10 billion RIA
$5,300,000 GUL
$2,948,000 winning bid
$2,726,000 net proceeds
Illiquid trust
79 year old male/78 year old female
$10 billion RIA
$5,200,000 GUL
$802,500 winning bid
$742,000 net proceeds
Divorce/change in beneficiaries
73 year old healthy male
$70 billion RIA
$3,000,000 GUL
$165,000 winning bid
$152,500 net proceeds
Expired buy/sell agreement
67 year old male w/ cancer diagnosis
General Agent (RIA referral)
$1,500,000 UL (converted term)
$475,000 winning bid
$439,375 net proceeds
Departed CEO policy - company owned
72 year old healthy male
Large public multi-national company
$51,000,000 GUL
$10,000,000 winning bid
$9,500,000 net proceeds
DELIVERING FOR YOU SO THAT YOU CAN DELIVER FOR YOUR CLIENTS
Service wins and AUM growth
We are less advocates for life settlements than for conscientious wealth management, life insurance, and Trust professionals to have a responsible, confidence-engendering means to maximize the value of a life insurance policy that is no longer of sufficient utility to justify maintaining or for which there are preferred means to achieve an estate planning objective, as the insured ages and circumstances change.
Life changes and so do your clients' life insurance needs. We ensure that you can enable them to maximize the value of it when they no longer need it.
Smarter Planner Podcast
Hear in this episode of the "Smarter Planner Podcast" Belle Osvath, CFP, interview 1908's founder, Scott Sanders, about his company's innovative approach to helping financial planners work with their clients to sell life insurance policies that they and their advisors determine they no longer want or need.
EFFECTIVE PRICE DISCOVERY
Highest winning bids
Our auction is designed around how institutional capital actually values life insurance policies. We recognize and take advantage of the inefficiencies in the market fact that each bidder's "private value" for the policy is unique and independent of others' valuations and that each bidder would prefer to bid to their true value than risk not getting the asset by bidding below that value, if someone might have a private value above that “bargain” bid.
And we get to actionable bids in 3 days, not two or three months.
"We have seen time and time again direct evidence of the benefits of both higher bids and materially lower fees that accrue to our clients who want to do a life settlement as a result of using 1908’s service."
Senior Insurance Advisor (CFP)
$10 billion RIA
"Once it was clear how big a difference your approach makes for our clients, we could never again in good conscience go back to the broker we used before we were introduced to you and the 1908 team."
Client Service Lead
$10 billion in-force life insurance advisor (part of $350B RIA)
"I won’t even imagine the reaction of one of our advisors to learning too late that a life insurance partner that we work with didn't engage 1908 and put a shared client into a brokered life settlement and charged our client those outrageous fees."
Managing Director, Head of Insurance Solutions
$190 billion RIA
"I know our advisors just added a new tool to their toolbox and I’m excited to see our teams collaborate."
Region Head, CFA
$15 billion RIA
"1908's approach leads to significantly higher winning bids and much faster transaction times than solutions that we have used in the past"
Director of Risk Advisory
Large International Asset Manager
"1908's model has turned this sector upside down amidst all these cowboy brokers."
Managing Director (ChFC, CLU)
$30 billion RIA
"Your approach aligns with where the true advice business for life insurance is going, including bringing real transparency to the otherwise murky industry of life settlements."
Vice President (CFP, CLU)
Large national life insurance broker
"We *love* working with you and your team."
Co-Founding Partner (CLU, ChFC)
$10 billion in-force life insurance advisor (part of $350B RIA)
"You are our only partner in the life settlement space and have built an outstanding reputation with our advisors. We appreciate your partnership and the great work you do for our clients!"
Director of Financial Planning (CFP, CPA, LLM)
$28 billion RIA
Who We Serve
Our clients are the most highly-regarded HNW/UHNW RIAs and Trust companies in the country, including three of the top five, six of the top 10, and more than a dozen of the top 50 RIAs, with $3 trillion AUM.
We also serve a growing universe of principled, Best Interest-oriented life insurance professionals at the most sophisticated insurance advisory firms in the country, as well as Trust Companies, trustees, and wirehouse advisors.
12 Top 50 RIAs
10+ top life insurance advisory firms
Several trust companies
Numerous wirehouse advisors & teams
OUR SUCCESS IS GROUNDED IN DELIVERING FOR YOU
What Your Clients Say about Us
"It was nice to have an option. We were out of luck until 1908 came along. I think ours is a good example of what can be gained and what it takes to get through it, which really was not bad."
$2M GUL for $540,000
Our client: $585 billion wealth manager
"Thank you for all you've done to make this deal happen. You have an incredible work ethic and we are so fortunate that Rich made the introduction. Too bad we can't rate you on Yelp!"
$1M UL for $92,500
Our client: $195 billion UHNW RIA
"I can't believe that they got that much for the policy. I was excited about the possibility of $125,000 and in a million years did not think I could get more than three times that for it."
$1.5M term for $439,000
Our client: UHNW life insurance advisor/GA
Rationalizing a Loosely-Organized, but highly-regulated Market
Intelligent market engagement
We access only the most reliable capital through regulated intermediaries, never fringe capital, ensuring the lowest transaction risk and greatest expediency in the market.
We typically get you actionable bids within 15 days of presenting to buyers and complete transactions in 60-75 days, executed in a secure ShareFile bid room with a full audit trail of market participation and engagement.
28%
average % of face value
10x
average multiple of surrender value
~20
buyers reached
15/60
days to actionable bids/funding
TRUSTED WEALTH ADVISOR IS UNIQUELY POSITION TO ENGAGE
Know what they own and why...and what has changed
With your intimate knowledge of clients' planning objectives and the life events that change the utility of a life insurance policy, and/or a simple liquidity preference that a settlement might address, you are uniquely positioned to identify and capitalize on the universe of changes in their lives that give rise to consideration of a life settlement.
<72/72+
if less healthy/if standard
UL/GUL/VUL
policy type (and convertible term)
Any
ownership structure
>$500K
policy size
without you, clients are on their own
Your advocacy is critical
In a rapidly evolving wealth management landscape that is placing an ever higher premium on financial planning expertise and execution, assuming that you can partner with a firm that shares your values and professionalism, is there any circumstance in which you would not want to enable a client to extract maximum value from a life insurance policy that is no longer of sufficient utility for them to maintain or from which the proceeds of a sale might enable a more appropriate strategy?
We enable you to responsibly and confidently talk with them about what option makes most sense and to effectively and expeditiously engage high-quality institutional buyers of in-force life insurance, if a settlement is what they want to pursue.
90% do not know that they have the option
10% settle their policy
Half engage single buyer, receive non-competitive offers
Half engage a broker, pay egregious fees
Insights and analysis on the market and options for your clients with surplus and unwanted life insurance.
Our quarterly e-mail newsletter delivers insights on the forces shaping market, ideas on how to identify opportunities and engage your clients, and examples of recent transactions that we have undertaken with the most sophisticated and conscientious wealth advisors, life insurance professionals, and fiduciary and Best Interest advisors of all stripes.
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