Private Placement Life Insurance (PPLI)
Elevate Your High-Net-Worth Conversations
What Is PPLI?
Private Placement Life Insurance, commonly known as PPLI, is a form of variable universal life insurance, but it is tailored to meet the unique needs of affluent clients in a different way than traditional life insurance policies. It allows policyholders to invest in customized portfolios—including hedge funds, private equity, and other alternative investments—within a tax-advantaged insurance wrapper.
Unlike retail variable life insurance policies, PPLI is offered through private placement, which means it is not available to the general public and is only accessible to accredited investors or qualified purchasers, depending on the jurisdiction.
The Market
PPLI is a specialized type of life insurance designed for high-net-worth individuals who are looking to add the tax-efficiency of life insurance with their broader investment portfolio. Though not widely known to the general public, PPLI is a powerful financial planning tool for those with significant assets and complex wealth management needs.
Key Benefits
Tax Efficiency
Investment gains grow tax-deferred, and death benefits are usually paid out tax-free.
Investment Flexibility
PPLI allows access to a wide range of sophisticated investment vehicles not typically available in traditional life insurance
Privacy and Asset Protection
Depending on the jurisdiction, PPLI may offer enhanced privacy and protection from creditors.
Estate Planning
When combined with trusts or other estate planning tools, PPLI can help reduce estate taxes and simplify wealth transfer.
Cost Efficiency
By combining customized investment options with institutional pricing, PPLI can offer lower overall costs compared to traditional investment structures for qualified investors.