Private Placement Life Insurance, or PPLI, is a customizable life insurance policy that allows the policy holder to construct a tailor-made product. PPLI is a specialized and bespoke life insurance policy that can provide a life insurance benefit along with a segregated investment account. PPLI offers the combination of high-value life insurance along with investment potential, wealth management, and estate planning benefits.
PPLI policies provide flexibly in asset classes, allowing you to hold a wide range of investments in the policy, including listed shares, unlisted shares, bonds and non-banking assets such as property, gems and real estate.
With PPLI, the asset or assets can be held in segregated accounts for each policy, which removes financial exposure to the insurer. The segregated account enables the policy purchaser to appoint an asset manager at the policy level or within an SPV within the policy. The investment is then able to build-value within the policy.
Beneficiaries can be appointed to the policy to receive life cover or the assets of the policy, providing protection as well as estate planning.
Similarly to other investment-linked policies, you can access the accumulated value of the policy via withdrawals or loans leveraged against the policy. Policies can be structured to have no surrender fees so the cash value of the policy is always available to the policy owner. In addition, the wealth manager is able to add additional assets to the policy.
For affluent investors, Private Placement Life Insurance (PPLI) can provide efficient multi-portfolio wealth planning life insurance protection with attractive returns, broad diversification, and a wide range of policy domiciles.
PPLI also offers a high degree of flexibility in terms of liquidity. Depending on your current situation, you can make withdrawals from the policy’s cash value or leverage the policy for a loan. In addition, you can add top-up premiums and periodically inject new assets into the policy.
At INLE Risk Management we can work with our insurer partners to structure a suitable PPLI policy that is a solution for your life protection, investment and wealth management goals, as well as providing estate planning.
