Full Definition
Private Placement Life Insurance (PPLI) is a variable universal life insurance product designed for accredited investors and qualified purchasers, typically requiring $1M+ minimum premiums. PPLI allows policyholders to invest in hedge funds, private equity, real estate, and other alternative investments within a life insurance wrapper, providing tax-deferred growth, tax-free death benefits, and tax-free policy loans. PPLI is available from a small number of carriers (typically offshore domiciled in Bermuda, Cayman, or Luxembourg). It is a sophisticated estate and tax planning tool used by UHNW families, often in conjunction with ILITs and dynasty trusts.
Explore More