In this episode, host Belle Osvath, CFP®, interviews Scott Sanders, founder of 1908 Advisors, a firm specializing in life insurance settlements. Scott explains how his company simplifies the process of selling cash-value life insurance policies that are no longer needed or wanted. He outlines three primary options for such policies: lapsing, surrendering for cash value, or selling to institutional investors for an amount greater than the surrender value.

Scott delves into the workings of the life settlement market, emphasizing the role of institutional investors, such as hedge funds and life insurance carriers, who use these policies as long-duration assets. By creating a more transparent and competitive bidding process, 1908 Advisors ensures that financial advisors can confidently help clients maximize the value of their life insurance policies.

Scott emphasizes that life settlements are not a niche product but a valuable tool for financial planning, particularly for high-net-worth clients. He also shares insights on taxation considerations and addresses misconceptions about the industry.

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The Smarter Planner podcast is produced by the Financial Planning Association National Capital Area Chapter (FPA NCA) for educational purposes. Belle Osvath and FPA NCA do not endorse any individuals or services mentioned.

From Surrender to Sale: The Game-Changing Approach to Life Insurance - Scott Sanders [Founder]

Smarter Planner Podcast