We create highly customized Private Placement Life Insurance (PPLI) policies for business owners and high net worth individuals.
Private Placement Life Insurance
PPLI encompasses a broad range of specific life insurance and annuity policies that typically have large face amounts and underlying investments that include private placement securities such as hedge funds, private equity, or other alternative investment categories such as commodities or real estate.
Key benefits of PPLI compared to traditional insurance products include transparent fees and expenses, no up-front commissions and highly customized funding and ownership structures. Availability of investment options for underlying policy assets (contributed premiums) varies by issuing company, ranging from a small number of approved funds to open-architecture approaches allowing the full range of insurance-eligible investment alternatives.
Types of PPLI
Advantage issues both:
Variable Universal Life policies (PPVUL)
Deferred Variable Annuity policies (PPVA)
Similar to traditional life insurance, PPVUL offers both cash value accumulation and a significant death benefit over and above the cash value. PPVA offers the investment flexibility and cash value accumulation of PPVUL, without a death benefit payment. In the United States and many other countries, investment gains inside life insurance and annuity policies are not taxed. This is referred to in the insurance industry as “Inside Build”. When comparing the benefits of PPVUL or PPVA to the status quo of holding assets in a taxable account, the benefit of the Inside Build is evaluated against the overall incremental cost of the policy structure.
International 101 Policies
For individuals and families whose tax residence is located outside of the United States and Canada, Advantage can offer investment-linked policies with cost effective mortality risk charges. Families and their advisors typically choose a 101 structure in connection with investment management and custody services provided by a third party bank or wealth management firm. This policy type is available to be issued from Advantage’s Cayman Islands and Puerto Rico locations.
Retirement Savings Plans
Advantage partners with qualified investment management and administration firms to offer non-qualified Retirement Savings Plans to companies with owners and employees located in foreign jurisdictions. The partner firm, acting as Plan Administrator, oversees a pre-selected menu of investment alternatives available to Plan participants prior to their retirement date. Upon retirement, the Plan makes equal periodic payments (quarterly or annually) to participants over the expected lifetime.