Private Placement Life Insurance
Private Placement Life Insurance is a Variable Universal Life policy and is institutionally priced (No surrender charges). It allows for customized investment options. It provides for accredited investors and qualified purchasers. PPLI is U.S. Tax-Qualified and is transparently priced.
The tax advantages of PPLI include:
Tax-free inside buildup of Cash Value (CV).
No taxation on investment gains within the policy.
Income tax-free death benefit.
Ability to access investment gains tax-free through a partial surrender of CV up to the cost basis in contract along with tax-free policy loans.
Estate tax-free death proceeds (depending upon policy ownership).
Advanced tax & estate planning is used by combining the benefits of offshore PPLI and transfer of capital assets using self-canceling installment note (SCIN) or traditional installment notes. This technique is most suitable for assets that have significant capital appreciation potential, assets that generate ordinary Income, actively managed investment strategies that generate short-term capital gains, and high capital gain appreciation.