About this episode

This episode discusses the importance of evaluating the financial strength of PPLI carriers when implementing a Private Placement Life Insurance strategy.

When implementing a Private Placement Life Insurance (PPLI) strategy, selecting the right carrier is just as important as selecting the right investments. After all: 👉 A PPLI policy is a long-term arrangement, often designed to last decades. For that reason, careful evaluation of the insurer's financial strength is a critical part of the due diligence process. ⚖️ 1️⃣ Why Carrier Strength Matters A PPLI policy may provide: • Tax-deferred growth • Estate planning benefits • Long-term wealth transfer opportunities However, all of these advantages depend upon: 👉 The financial stability of the insurance company issuing the policy. A financially strong carrier is generally better positioned to: • Meet policy obligations • Administer the policy effectively • Support long-term planning objectives 📊 2️⃣ Review Independent Credit Ratings One of the first steps in evaluating a carrier is reviewing ratings from major agencies such as: • A.M. Best • S&P Global Ratings • Moody's Investors Service • Fitch Ratings Many advisors prefer carriers maintaining: 👉 Ratings of A or higher although ratings should be evaluated in context and not viewed in isolation. 🏦 3️⃣ Analyze Risk-Based…

Topics covered

• Private Placement Life Insurance
• financial strength
• insurance carriers
• due diligence
• risk-based capital

Keywords

• PPLI
• financial stability
• insurance company
• credit ratings
• risk-based capital

Mentioned in this episode

Organizations: A.M. Best, S&P Global Ratings, Moody's Investors Service, Fitch Ratings

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• How PPLI Works Inside an Irrevocable Life Insurance Trust · June 8, 2026 · 2 min
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