Private Placement Life Insurance (PPLI) seeks to maximize the account values in the policy and typically has a lower level of death benefit. Structured like a Variable Universal Life policy, the premiums are flexible, yet most investors fund the PPLI to the maximum allowable premium. Since it is a life insurance policy, it does have fees associated with it, although these are typically substantially lower than “off the shelf” contracts.
Our clients purchase PPLI because they can customize the investments in their subaccounts, choosing from a wide variety of traditional and non-traditional asset classes. As with any complex investment, due diligence and proper planning is important. We work with our clients and their investment team to design a custom PPLI that fits their needs. Of course, the tax advantages are significant, which is a large part of the appeal of PPLI.
A properly structured PPLI has many advantages and your advisor at Mack Financial is here to help you make the choices best for you and your family.
