What Is Private Placement Life Insurance (PPLI)?

Private Placement Life Insurance is one of the best kept secrets in the life insurance industry. Why is that? Because insurance providers don’t stand to make as much from these policies as other types of life insurance products. PPLI is a type of variable rate life insurance policy customized for the individual who holds the policy. Why is this policy so desirable to wealthy individuals?

  • Cash value grows tax-free
  • Lower premiums, fees, and commissions than retail life insurance
  • Tax-free access to the cash value of the policy
  • More flexibility in how the cash value is invested (including alternative investments)
  • Tax-free transfer of wealth to your heirs
  • Creditor protected in certain states (including Texas)

Who Is Private Placement Life Insurance For?

Although PPLI is an exciting investment vehicle it is not suited for everyone. Individuals who meet the following criteria are great candidates for this type of life insurance. However, each circumstance is unique so get in touch with us today to see if you can benefit from the lower fees, tax-free growth of capital, and flexibility of PPLI.

  • Investable assets greater than $5 million
  • In good health for your age

If you do not have more than $5 million of investable assets, a private annuity may work for you. Private annuities provide investors with much of the benefits of PPLI without the higher asset minimum.

Why Invest in PPLI with Durbin Bennett?

At Durbin Bennett Private Wealth Management, Austin, we don’t sell insurance products. Instead, we connect you with vetted life insurance providers that we believe provide high quality service and products to our clients. With private placement life insurance or a private annuity as the investment vehicle¹, you will have access to the suite of private alternative investments that our dedicated in-house investment team has thoroughly reviewed and analyzed. This strategy helps provide a low cost and efficient way to access alternative investments uncorrelated with the public stock market.

How Can We Help?

To learn more about PPLI and how your portfolio could benefit, call or fill out our form.

1. Please refer to the PPM (private placement memorandum) for associated risks and other details related to these investments.

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