Private Placement Life Insurance
Private Placement Life Insurance (PPLI) is a product specifically designed for the investing and insurance needs of high-net worth individuals. Unlike typical life insurance, few clients are concerned with the actual death benefit. Essentially, Private Placement Life Insurance is an investment wrapped inside a tax free insurance policy. The client’s full investment remains on his balance sheet securing his net worth, but shifting a portion of the assets to a tax free environment. Private Placement Insurance provides access to alternative investment classes such as hedge funds, hedge funds of funds, commodities, real estate, and options.
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A well-structured Private Placement Insurance Policy eliminates the tax drag on the client’s investments increasing the net returns. Put another way, PPLI can eliminate the significant tax burden on portfolio earnings. Click to see taxable comparisons:
Private Placement Life Insurance is an elegant tax-elimination vehicle that should be part of every high-net worth individual’s investment and estate planning portfolio. The benefits of tax-free accumulation and tax-free access to the policy assets, as well as a tax-free death benefit present an unparalleled tool for the high-net worth marketplace.