Private Placement Life Insurance

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Private Placement Life Insurance

Private Placement Life Insurance

What is Private Placement Life Insurance

Looking for a smarter way to protect and grow your wealth? Private Placement Life Insurance (PPLI) is an investment-linked insurance policy designed to grow tax-efficiently while fully complying with the regulatory and tax requirements of your home country. Unlike traditional life insurance, PPLI offers customized investment options, including a wide range of financial and non-financial investments and assets, and unique tax advantages, such as tax deferral on investment gains, making it an effective vehicle for wealth protection and legacy planning for high-net-worth individuals and their families.

Benefits of PPLI

Wealthy families face complex challenges in protecting and transferring their wealth, especially when it is spread across multiple jurisdictions. 1291 Group created the PATEC framework to simplify these challenges for our clients, showing how PPLI can safeguard legacies and streamline financial strategies. PATEC highlights why PPLI stands out over other holding structures, focusing on five key advantages:

Privacy Protection: Provides confidentiality through a compliant structure, shielding your financial details from public disclosure.

Asset Protection: Offers robust protection against creditors and legal judgments, backed by law in many jurisdictions.

Tax Planning: Tax deferral allows investments to grow without immediate tax liability, optimizing estate taxes and simplifying reporting requirements.

Estate Planning: Ensures immediate and coordinated succession, seamlessly transferring assets to heirs.

Cash and Liquidity: Offers flexibility to surrender (full or partial), access liquidity via policy loans, or add extra life cover as needed.

How PPLI is Structured

PPLI involves a client, a policyholder, an insurer, and a customized investment portfolio, typically managed by the client’s preferred investment manager to align with their financial goals. 1291 Group works with the client, their advisor(s), and the insurance company to design the optimal structure tailored to their unique needs, ensuring compliance both now and in the future. We also continue to work with our clients to oversee ongoing updates and adjustments, ensuring alignment with evolving tax rules and other regulatory changes. See the accompanying diagram for a visual breakdown of the structure and process.

Frequently Asked Questions

Who is PPLI for? PPLI is ideal for wealthy individuals and families seeking tax efficiency and legacy planning.

How does PPLI differ from traditional life insurance? Unlike traditional policies, PPLI allows for customized investments and greater flexibility within a tax-advantaged structure.

What kinds of assets and investments can be held in a PPLI? PPLI can hold a wide range of financial and non-financial assets, including stocks, bonds, hedge funds, private equity, cryptocurrencies, companies, and other alternative assets, tailored to the client’s goals.

Can my current fund manager or advisor continue to manage the investments under a PPLI? Yes, PPLI typically allows the client’s preferred fund manager or advisor to continue managing the investments within the policy’s structure.

Do I have to sell my existing portfolio to fund a PPLI with cash? No, PPLI can often be funded with existing assets transferred in-kind, avoiding the need to liquidate your portfolio.

Get Started with 1291 Group

Ready to explore PPLI for your wealth planning?
Contact 1291 Group today to discuss your tailored solution: info@1291group.com or fill in the form below!

CONTACT

1291 Group Ltd.
Mailing Address:
Beethovenstrasse 24
8002 Zurich, Switzerland
Phone +41 44 266 21 41
Email info@1291group.com