Products:

Private Placement Life Insurance

Private Placement Life Insurance ("PPLI") is termed a variable life insurance policy because the cash value of the insurance policy varies with the investment performance of the underlying assets. The policy is issued by either a Bermuda or Bahamas based long-term insurance company.

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How PPLI Works:

The asset manager and custodian bank are selected by the policyholder with approval of the insurer. Premiums paid into the policy are flexible and invested according to a selected strategy.

Tax Benefits:

Tax law in most countries allows for tax deferred build up of gains in a compliant PPLI policy, so no tax on income or capital gains is paid during the accumulated period. Death benefit payout may be fully tax free.

Asset Protection:

Legal title (ownership) of assets passes from policyholder to insurance company. Assets underlying the policy cannot be attached or accessed by a creditor or other claimant in a legal process.

Other Benefits:
  • Inheritance and Succession Planning
  • Investment Flexibility and Control
  • Access to non-U.S. investment funds
  • Liquidity

Still have questions? For more information contact one of our Financial Advisors or check out our FAQ:

PPLI FAQ

Private Placement Variable Annuities

Private Placement Variable Annuity ("PPVA") is a contract issued by an insurance carrier to high-net-worth investors or trusts. The investor can allocate and reallocate money invested ia the annuity to a wide array of traditional and alternative investment options including hedge funds and fund-of-funds.

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How PPVA Works:

​​​First the client completes a PPVA application with First Liberties. The client directs asset allocation decisions and funds PPVA contract with an initial deposit. An insurance carrier wires investment proceeds, on behalf of client's separate account, to specified insurance dedicated fund(s).

Why Consider PPVA:

Alternative investments provide attractive return opportunities in today's low interest rate environment. Many alternative investments are extremely tax-inefficient making tax deferred growth extremely beneficial. Current tax laws offer attractive benefits to investors within an annuity vehicle; tax laws may change.

Tax Benefits:
  • Tax-deferred accumulation of investment returns
  • With tax rates expected to increase, PPVA eliminates tax drag on investment performance. ​
  • Income and estate tax-free death benefit potential
Other Benefits:
  • Inheritance and Succession Planning
  • Investment Flexibility and Control
  • Access to non-U.S. investment funds
  • Liquidity