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Private Placement Life Insurance

To put your financial plan into action, you may need a particular wealth solution. Depending on the objectives or the goal of the plan; different wealth solutions will fulfill these aims. 

Insurance is often used to solve cross-border objectives for high-net-worth individuals and families; to structure their wealth. If the aim of your wealth is to grow it, preserve it, be able to spend it when you need it and transfer it to the next generation in a controlled tax-efficient manner, one solution is to use Private Placement Life Insurance (PPLI).

PPLI is a life insurance policy with a value linked to the performance of the underlying portfolio within an open architecture life assurance policy. It is a globally recognised legal structure that offers a wide range of investment opportunities and flexibility to grow and preserve the value, in a tax-efficient way for current and future generations.

One of the many benefits is using the policy to transfer wealth by using beneficiary nominations or Trusts to pass assets on death or during the lifetime. Nominations and Trusts can be confidential and help avoid family disputes, challenges and forced heirship rules in certain countries.

By using a beneficiary nomination or a Trust, you can avoid probate delays when transferring wealth to the next generation. Assets that spread across many different jurisdictions can be passed to the beneficiaries in a controlled and effective manner.

The PPLI can hold an array for assets to meet different needs, investment objectives and lifetime goals. Existing assets can be transferred to consolidate them in one place rather than multiple investment accounts or banks. Management of these assets can be assigned to your current custodian relationships.

By consolidating and changing the title and ownership of the underlying assets to the insurance company, the assets can grow virtually tax-free (except for certain withholding taxes). Using a suitable Trust or other corporate entity holding the PPLI, you may reduce tax liabilities arising on death. 

The strengthening global regulation via the Common Reporting Standards (CRS) and the exchange of tax information between jurisdictions, the policy value is reported rather than the individual holdings.

This wealth solution is part of your overall financial plan and can provide peace of mind and the reassurance that whatever happens, your family and loved ones are financially secure, and wealth is protected. 

This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation.  The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association.  All efforts have been made to report or share true and accurate information.  However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com