3. Then it is time to select the insurance carrier. The right insurance advisor will be able to identify the company whose products best meet a particular buyer’s needs. But there are important questions to ask:

• Is the advisor captive to a particular carrier or does he or she function independently with access to a variety of carriers?
• Does the advisor understand that carriers often specialize in particular product lines, which can affect their product prices and commitment to policyholders?
• Does the advisor have access to custom products priced for the institutional market?
• Has the advisor worked with senior level management at the insurance companies to come up with new product designs?
• Does the advisor understand the impact of reinsurance on product pricing?

4. In the underwriting step, the insurance carriers assess a client’s insurability; this is also where pricing is determined. To begin, the client’s medical records must be gathered, which can take about four to six weeks. An experienced insurance advisor will review the records for accuracy and consistency and point out discrepancies where they exist. Often, such discrepancies can be resolved before a formal submission.

Family offices can “informally” send medical records to various carriers, which allows the insurance advisor to obtain preliminary feedback about likely underwriting classifications, giving the family a general sense of the life insurance policy’s ultimate pricing. The informal process also allows the family to consider whether to retain current life insurance holdings or make changes. Many families appreciate having this insight before they have to take any medical exams. Again, it will help to have an insurance advisor who is experienced with ultra-high-net-worth families and their advisors, somebody who can make sure the process is followed.

If a family decides to make a change, it’s critical to have an underwriting advocate. The insurance advisor must have a deep understanding of all facets of the process, including the carrier negotiations, how best to present a family’s case and an ability to manage a carrier’s capacity limits for larger placements. It’s important to note that the first price offers from the carrier are not always final. It can help in these negotiations if the advisor has history and credibility with the carriers. It also depends on the amount of insurance and the type of business, and, with some ultra-high-net-worth life insurance advisors, their ability to participate in the risk.