Private Placement Life Insurance (PPLI)

What is a Private Placement Life Insurance?

​Private Placement Life Insurance (“PPLI”) is a form of variable universal life insurance having two components, an investment account and a death benefit. Private Placement Variable Annuity (“PPVA”), is a form of a variable annuity, and is a life insurance contract whose investment account value fluctuates with the portfolio of underlying assets. Both are offered privately to Accredited Investors and Qualified Purchasers.

Core Value:

  • Primarily it is an Investment-oriented opportunity and decision, as it establishes a tax-free investment environment, at a very low cost, where there are a number of investment alternatives. ENSPIRE’s product lets the Investment Advisor manage the assets paid into the insurance policy (PPVUL & PPVA).
     

  • The death benefit value of the policy is generally considered a secondary benefit (PPVUL only).

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Tax Benefits include:

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  • Tax-deferred earnings – dividends, interest, and capital gains (PPVUL & PPVA)
     

  • Tax-free access to cash value through withdrawals up to cost-basis (PPVUL only)
     

  • Tax-free access to cash value through policy loans (PPVUL only)
     

  • Policy beneficiaries receive policy proceeds on a tax-free basis at the death of the insured (PPVUL only)

Private placement (or non-public offering) is:
 
  • The offering and sale of a security by a brokerage firm not involving the general public, but rather through a private offering, mostly to a group of sophisticated investors who are categorized as Accredited Investors or Qualified Purchasers.
     

  • Available in many forms, the type reviewed in this Learning Center is offered under the SEC Rules known as Regulation D, rule 506.

What is Private Placement? Why Use It?

Private placement has advantages including:

  • Often less complexity than a registered product.
     

  • Often less costly to implement and maintain.
     

  • Less burdensome regulatory requirements.
     

  • Bespoke Solution – custom designed for each individual investor.