Due Diligence Considerations Before Selecting a PPLI Carrier
About this episode
This episode discusses the critical due diligence considerations when selecting a Private Placement Life Insurance carrier.
Choosing a Private Placement Life Insurance (PPLI) carrier is not just about investment flexibility or tax efficiency. At its core: 👉 You are selecting the long-term financial counterparty responsible for safeguarding substantial wealth. That means carrier due diligence is critical. ⚖️ 1️⃣ Financial Strength & Stability The first question should always be: 👉 Can the insurer actually meet its obligations? Key areas to review include: • Financial strength ratings • Capital adequacy • Reserve quality • Long-term solvency history The goal is to assess: ✅ Claims-paying ability ✅ Long-term stability ✅ Resilience during market stress 🌍 2️⃣ Licensing & Jurisdictional Status A carrier should be evaluated based on: • Licensing status • Regulatory supervision • Whether it is: Admitted Authorized Properly regulated in the relevant jurisdiction This becomes especially important for: • Offshore PPLI structures • Cross-border families • Multi-jurisdictional planning 🏦 3️⃣ Claims-Paying Reputation Financial statements alone are not enough. Due diligence should also examine: • Claims handling history • Reputation in the market • Responsiveness during disputes or stress events 👉 A…
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