Lessons Learned: The Importance of Due Diligence

Lessons Learned: The Importance of Due Diligence By Kellan FinleyClients with medical issues can be well-served if they trust us.

An added value to our firm’s service is that we have the capacity to take advantage of the market and procure the right insurance carriers for the client - even if they have a series of medical issues. Take the following two examples of our ability to leverage the marketplace in order to find good solutions for people.

Example 1

In the process of reviewing his client’s financial plan, an RIA brought up insurance. The client told the advisor that he let his insurance policies lapse, but did not think he could qualify for insurance.

His advisor eventually referred him to us to discuss his options. The client disclosed to us that he had been diagnosed with prostate cancer. He provided us with his medical records and agreed to let us take the proper steps to find out what we could do for him.

In the meantime, the client signed a contract for a policy with another firm that neglected to do any due diligence on the carriers and how they would rate him, given his medical condition. The policy he obtained for $1,000,000 of ten-year term cost $21,000 annually.

We found several carriers that looked at the client in a more favorable light than the carrier he was with. The first carrier approved him as a Table D subscriber, which means that he was rated four levels below standard.

We were able to get him a standard rating with a better carrier with an annual premium of $11,000, cutting his premiums by more than half.

Example 2

We had another RIA come to us with a client who had some medical issues, including cancer and high blood pressure. The client was preparing to retire and needed long-term care insurance to protect his nest egg in the event of a long-term medical condition. Self insuring was not an option as there were not sufficient assets.

Prior to seeing us, the RIA had tried using one of the traditional, large, brokerage firms. After taking some medical information, they came back saying there wasn’t anything they could do for him and the client was uninsurable.

After obtaining detailed medical records from the client’s physicians, we consulted with several carriers and we were able to find three carriers to consider the client using both traditional long-term care and hybrid insurance products.

By taking the time to obtain medical information, we were able to clarify the medical conditions and provide carriers with a more accurate assessment of the client and their risks.

Kellan Finley



Kellan Finley

Insurance Decisions
Phone: 212-920-3485