Private Placement Life Insurance

Sophisticated structures for generational wealth protection and growth

Private Placement Life Insurance [PPLI] policies are available for accredited investors or professional clients only. Understanding and experience of financial instruments is required to meet the product’s strict eligibility criteria.

For clients who have liquidity events and are looking for a tax-efficient asset protection solution with access to alternative investments, consider PPLI. These specialist policies offer wealth protection with underlying deferral of policy cash values.

An international planning strategy

PPLI policies are available in the US domestic market for US connected clients and separately in the offshore markets for clients with international needs and tax compliance requirements. Here are some example situations for PPLI:

• pre-immigration planning
• complex international tax planning for trusts and planning for alternative investment strategies
• a wealth protection strategy for trusts involving US beneficiaries

A properly designed PPLI policy

Every Private Placement Life Insurance structure we design begins with the question: what is most suitable for the client? The answer depends on tax residency, domicile, intentions to move. wealth and other factors. For US citizens, an additional layer of consideration is given. We have spent 2 decades designing PPLI solutions that are calibrated to individual circumstances and the benefits include:

• Optimisation of after-tax investment returns
• Deferral or complete elimination of income tax for individuals and trustees
• Enhanced asset and creditor protection
• Political risk planning for future tax increases
• Planning for use with Family Limited Partnerships
• Greater certainty for charitable bequests
• Gift planning for affluent families with heirs in high tax jurisdictions

For family offices and professional advisors navigating the complexities of cross-border wealth structures, we offer a solution to some of the most intricate planning challenges in international finance: the complexities that arise when US beneficiaries are connected to trusts.

We hold an independent view of the global PPLI marketplace, which includes US providers. We advise and coordinate the relationship between the insured client, trustees, investment managers, Insurance Dedicated Fund (IDF) providers or Separately Managed Account (SMA) providers and insurance companies to ensure that every element works together cohesively.

As for all high-value life insurance policies, sophisticated underwriting of health and financial data is undertaken and we will guide you through this process.

Over time, as family dynamics evolve, Vie International continues to perform proactive reviews of policy administration to ensure your needs continue to be met.

What is MAGNASTAR?

For US domestic PPLI policies, a key offering is M Financial’s MAGNASTAR PPLI program. Launched in 2001, this is the only multi-carrier PPLI platform created with 3 leading life insurance carriers active on its platform. The increasing success of MAGNASTAR reflects its strong alignment with client needs in a dynamic financial environment.

Vie International has exclusive access to MAGNASTAR from the UK and it offers:

• A PPLI structure
• A design for professional clients and accredited investors only
• A combination of life insurance protection with tax-deferred investment growth potential
• Compliance with a strict US regulatory framework, including the investor control doctrine
• Access to institutional grade, alternative investment solutions, offering lower entry points to funds that have million dollar investment minimums
• Access to policies from top credit rated domestic US life insurance carriers

This solution is particularly compelling for clients who meet specific suitability criteria and are seeking sophisticated, tax-efficient global wealth planning strategies.

Contact Vie International

Vie International has been designing and structuring PPLI for professional investors for over 20 years and is a leader in educating the wider international community on planning strategies. The firm’s annual PPLI conference in London is a well-attended global planning conference for the professional advisor community.

If you would like to learn more, contact Vie International for an initial meeting with a cross-border life insurance investment professional.