Private Placement Life Insurance (PPLI)

Why PPLI?

Private Placement Life Insurance minimizes or eliminates tax concerns from your planning. Consider the techniques you are currently using. Would they be benefitted by removing federal and state taxation?

Private Placement Life Insurance Benefits:

Wealth Transfer
Creditor Protection
Tax-Free Loans
International Investments Denominated In Dollar Or Other Currencies
Access To The World’s Leading Investment Managers
Access To Exclusive Private Investment Funds (Hedge Funds, Private Equity, Private Real Estate, etc.)

Below we explore the basic structure and benefits of PPLI. Visit our PPLI Library to learn more about the rules and nuances of Private Placement Life Insurance or contact us to receive a PPLI feasibility analysis today.

The Basic PPLI Structure

Grantor/Insured sets up an Irrevocable Trust
Grantor/Insured pays PPLI premium into the Irrevocable Trust
Grantor/Insured selects the Trust's beneficiary(ies)
The trust pays premium to the (#5) insurance company
Insurance Company reinsures (#6) the majority of its risks to ensure ability to meet its insurance obligations
The same U.S. companies reinsure onshore and offshore insurance companies’ obligation to pay death benefits. Therefore, offshore companies carry no more risk than U.S. companies
Insurance Company (#5) issues the PPLI policy
Grantor/Insured recommends an investment advisor of their choice
Investment Advisor invests the policy assets

PPLI Policies Can Be Used In A Planning Strategy For:

Retirement planning
Asset protection planning
Political uncertainty planning
Tax-free income and appreciation
Participating in hedge funds and other alternative investments
Tax-free loans of policy assets that can be paid back anytime or out of the death benefit
Helping heirs avoid being forced to sell assets to meet estate tax liability

Greater Investment Flexibility

Private Placement Life Insurance has the qualities of both insurance and investments. Part of the premium goes to pay for insurance, and the rest is invested.

Your PPLI investment advisor is allowed to select from an almost unlimited choice of investment funds and to allocate the assets among those funds
The advisor has the option of moving money between funds from time to time without additional charges or tax consequences
There is no income tax on earnings. Tax-sheltered growth is one of the main selling points for Private Placement Life Insurance policies

This material is intended for informational purposes only. It should not be construed as legal, tax, or investment advice and is not intended to replace the advice of a qualified attorney or tax advisor. We are not a law firm or a substitute for a law firm or an attorney. We do not provide legal advice or investment advice of any kind nor legal strategies, opinions or rights.
Private Placement Life Insurance and Annuities are unregistered products and are not subject to the same regulator requirements as registered products. As such, Private Placement Life Insurance and Annuities can only be offered to accredited investors or qualified purchasers as described by the Securities Act of 1933.

Private Placement Life Insurance (PPLI)

Why PPLI?

The Basic PPLI Structure

PPLI Policies Can Be Used In A Planning Strategy For:

Greater Investment Flexibility

Schedule Your Free Consultation Today

Tell us about your goals....we'll tell you how we can help!

Private Placement Life Insurance (PPLI)

Why PPLI?

The Basic PPLI Structure

PPLI Policies Can Be Used In A Planning Strategy For:

Greater Investment Flexibility

Schedule Your Free Consultation Today

Tell us about your goals....we'll tell you how we can help!

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