Private Placement Life Insurance

Private Placement Life Insurance (PPLI) is a wealth-planning solution for wealthy families and high net worth individuals. In essence, PPLI solutions offers a number of advantages over other holding structures (e.g. trusts, foundations, companies), as they leverage the power of a life insurance policy to provide privileged privacy, asset protection, tax and estate planning benefits. PPLIs are very versatile and can hold both financial and non-financial assets (e.g. operating companies, real estate, etc).

Why you may consider PPLI rather than using a different holding structure?

The main benefits are as follows:

P – PRIVACY

The insurance company becomes the legal beneficial owner of the assets. As investments are made in the name of the insurer there are no restrictions due to citizenship, providing increased freedom of choice. This also provides increased confidentiality due to insurance secrecy laws, with often lower or no reporting obligations.

A – ASSET PROTECTION

When correctly structured, the policy may not be seized or included in bankruptcy proceedings or other creditor claims. The policy is normally held in a segregated account by the insurance company, providing an additional layer of protection.

T – TAX OPTIMIZATION

Depending on the tax domicile of the policyholder and the beneficiaries, the policy can be set up so it can grow tax-free or tax-deferred. In addition, reporting obligations are generally significantly simplified.

E – ESTATE PLANNING

As the policy is not considered to be part of the policyholder’s estate and they have a free choice of beneficiaries, assets can be passed on efficiently to the next generation or other parties, avoiding probate. Should the policyholder pass away while the policy is in force, the insurance company will pay according to their wishes within thirty days.

C – CASH / LIQUIDITY

The policy can be surrendered or used as collateral for a loan at any time. If necessary, a high level of death coverage can be included if a known estate or inheritance tax liability is likely to affect the next generation.

If you wish to discuss/share your proposal with us, please do not hesitate to leave your enquiry at contact@orbis-alliance.com. We will get back to you very shortly.