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 TRULY DIFFERENTIATED SOLUTION
Differences that may very well change your willingness to engage clients about what to do with life insurance they not longer want or need
01
Professional Execution
We are capital markets professionals with broad and deep experience in the market for in-force life insurance and, importantly, engaging the best wealth management firms in the country for 10+ years - we speak your language
02
Highest Winning Bids
We deploy a significantly more effective price discovery process for this inefficient, asset constrained market that consistently yields significantly higher winning bids
03
Rational Fees
We receive a fee for service of 7.5% (1/4 the incumbent channel) 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
Given our materially higher winning bids (average 1.3x what the broker has gotten/could get) and fees 1/4 what brokers charge, we generate an average 1.8x higher net proceeds
Our Mission
To enable the most conscientious wealth advisors, principled life insurance professionals, and fiduciaries to confidently deliver life settlements for clients who own life insurance that is no longer of sufficient utility to justify maintaining, in a way that meets the highest fiduciary standards of transparency, price discovery, and rational fees.
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. Inevitably, as clients age and circumstances change, this evaluation identifies unwanted or surplus policies, whose initial protection or estate planning purposes are no longer relevant or cost-effectively achieved, or clients whose liquidity preferences have changed.
02
High ownership & lapse rates, institutional demand
85% - 90% of permanent life insurance is forfeited before it pays a death benefit - 40,000 HNW/UHNW >72 forfeit $75B each year - 2/3rd of which have value to a universe of institutional buyers of in-force life insurance.
Demand originates from private equity firms, dedicated funds, and investors with longevity experience and duration demand. Generally, the market seeks UL chassis and convertible term policies ranging from $1M—$50M+, paying a significant premium to cash value.
03
Badly flawed incumbent distribution channel
But, the legacy distribution channel is inappropriate for fiduciaries - opaque, inefficient, and ineffective price discovery, egregious fees, and a myriad of predatory behaviors - resulting in market penetration of <10%.
Accordingly, 1908 has built the only institutional-quality process to sell (settle) these policies to institutional investors, and has served since 2016, many of the country's most highly regarded wealth management firms and life insurance professionals.
Who We Are
Capital markets professionals with extensive experience and expertise with the institutional market for in-force life insurance, first for seven years with a PE buyer and since 2016 enabling top wealth advisory professionals to engage the market with and on behalf of their clients.
Unsurpassed experience
What We Do
Conduct a controlled, disciplined, and rigorous price discovery process with a universe of institutional buyers to ensure maximum value for your older clients' unwanted and surplus life insurance, consummating the transaction in 60 days and being paid a 7.5% fee (min. $12,500).
Most effective, expeditious, lowest cost
How We Are Different
From the simple value to always do right by our clients to our fundamentally smarter price discovery and rational fees, we enable substantively better outcomes (1.3x winning bids, 1.8x net proceeds, in half the time) than the incumbent channel of brokers and single buyers.
Different values, better results
EXPERIENCE, VALUES, discipline, RELATIONSHIPS
Simply, the best at what we do
We started this business because we were frustrated by what we saw at a large private equity buyer of in-force life insurance for seven years, offended by the incumbent channel's business practices, opaque and woefully ineffective price discovery, and egregious commissions, knowing that top wealth advisors would only engage the market in a meaningful way if real change were to occur.
Changing a market with an incumbent channel that wants to protect its egregious economics is hard, but fun, and we work only with people we like and respect personally and professionally, who share our values, and who we’d want to spend time with, if we weren’t working together.
Founded in 2016
Deep capital markets and life settlements experience
Extensive experience working with top financial advisors and top firms
Unique, far more effective price discovery process
DELIVERING FOR YOU SO THAT YOU CAN DELIVER FOR YOUR CLIENTS
Service wins and AUM growth
For too long, wealth advisors of various types have been faced with a Faustian bargain of ignoring altogether the benefit of the sale of a client's unwanted life insurance policy or engaging a fundamentally broken and egregiously expensive distribution channel that insults their intelligence and business ethics.
We have changed that, advocating less for life settlements than for conscientious wealth management, life insurance, and Trust professionals to have a responsible 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.
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.
A BETTER, MORE EFFECTIVE PRICE DISCOVERY MECHANISM
Higher winning bids
Our approach, borne of experience as buyers of in-force life insurance for seven years and an understanding of how to extract maximum value from asset constrained, inefficient markets, is uniquely effective at compelling participants to bid their true private value, not anchored to others' bids, yielding substantially higher winning bids than the flawed approach of the incumbent channel.
Those winning bids are often not just a fraction higher than an open bidding model can generate, but a multiple, putting hundreds of thousands and even millions more in your clients' account and your AUM.
Blind, one-round bidding compels max bids by punishing bargain hunting
In open bidding, maximum value rarely and only achieved by coincidence
Small differences in assumptions have dramatic impact on valuation
Brokers' "negotiating" also prolongs process to ludicrous lengths
"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
"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
"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
Among our clients are many of the most highly-regarded HNW/UHNW RIAs and Trust companies in the country. Three of the top five, six of the top 10, and more than a dozen of the top 50 RIAs, with $3 trillion AUM, including many firms that assiduously avoided life settlements until they learned of us.
We also serve a growing universe of principled, Best Interest-oriented life insurance professionals at the most sophisticated insurance advisory firms in the country, including many who transitioned their activity to us upon learning of the significant difference in our approach from the incumbent channel, 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.
Unlike the flawed broker approach, ours ensures that your clients benefit from market inefficiencies that have, before us, inured to the benefit of buyers and intermediaries. We complete transactions in less than half the time (importantly, completing price discovery in weeks, not months), executed in a secure ShareFile bid room, not via e-mail and phone calls, enabling a full audit trail of market participation.
1.3x
average multiple of broker winning bid
1.8x
average multiple of broker net proceeds
~20
buyers reached
15/60
days to actionable bids/funding
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
TRUSTED WEALTH ADVISOR IS UNIQUELY POSITION TO ENGAGE
Know what they own and why...and what has changed
A common misconception among many advisors is that the opportunity to monetize a client's unwanted or surplus life insurance policy is limited to when they can no longer afford it - that is only a small portion of the transactions that we actually undertake.
There are as many reasons that your older clients get to a point that a policy no longer makes sense to maintain as clients who own life permanent life insurance. With your intimate knowledge of their planning objectives and life events that change the utility of a life insurance policy and/or liquidity preference, you are uniquely positioned to identify and capitalize on those changes.
<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
DO THE RIGHT THING
AGENTS, HOW DO YOU WANT TO BE PERCEIVED?
01
It often felt off and you wanted something different
When we started this business, we believed that no life insurance agents who did life settlements would change from what we saw as a broken, but highly remunerative, channel, to our approach.
Boy, were we wrong. If you're inclined to Best Interest for your clients, and the broker process never felt quite right to you, we offer a very different solution .
02
You want to be perceived as at least Best Interest oriented
Which approach, ours or a broker’s, do you believe will give your clients the confidence that you have their best interests at heart?
If you had to defend the process and compensation of each approach, to a client or a wealth advisor with a shared client, which would be easier?
03
You want fair compensation for your role in the process
We understand that you must/want to be properly compensated for your role and we will work with you to ensure that you receive fair compensation and, if not exactly, comparable to what you receive from a traditional broker, even at the lower %’s (we typically split 10% - 15% with agent partners), borne of our higher winning bids.
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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