Private Placement Life Insurance

Private placement life insurance (‘PPLI’) is a type of variable universal life insurance (“VUL’) that is only offered privately and not through a public offering. lt can be utilized as a tax strategy that transforms ordinary taxable income and capital gains into tax free income without any income reporting requirements. According to the IRS Private Letter Ruling, May 2, 2002, for any U.S, individuals with investment income, a PPLI policy will provide compliant, tax-free compounded earnings.

A PPLI policy is variable in nature, which allows the insurance company to invest the majority of the premiums in a legally separate, segregated account to be managed by either an investment manager or the insurance company itself, There are no guarantees when it comes to the investment performance. PPLI has cash value linked to the performance of one or more investment accounts within the policy insurance and is offered without a formal securities registration.

Disclosure: Private Placement Life Insurance and Annuities are unregistered products and not subject to the same regulatory 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.