Private Placement Life Insurance
Ultra-affluent families utilize Private Placement Life Insurance and Annuity Investment Accounts to shield traditional and alternative asset class investments from current period taxation. These accounts can optimize after-tax investment returns, eliminate K-1s, enhance creditor protection, increase charitable bequests, reduce the reporting requirements for foreign financial institutions, and/or protect foreign wealth from U.S. income tax. Under most reasonable assumption sets, the incremental cost of the Private Placement Life Insurance or Annuity Investment Account is substantially lower than the cost of income taxes that would otherwise be payable on investment gains.
Company Experience and Expertise
Ironclad Strategies has over 20 years of structuring and administration of Private Placement Life Insurance and Annuity Contracts. Trent Davis’s experience includes: co-founding member of American General’s (became AIG) private placement group, VP of Sun Life Financial’s private placement group, originated Lion Street’s private placement offering, and twenty years of working with high net worth clients on complex insurance and tax needs.
What are Private Placement Products?
Private Placement Insurance Products (PPIP) are un-registered Variable Universal Life Insurance (PPLI) policies and Variable Annuity (PPVA) contracts that are offered exclusively to high net worth individuals. These products are filed with and approved by state insurance departments and are fully compliant with the current Internal Revenue Code.
Who Qualifies for Private Placement Insurance Products?
PPIP are offered only to “accredited” or “qualified” investors. An Accredited Investor has a net worth exceeding $1,000,000 or an annual income of at least $200,000 over the past two years. A Qualified Purchaser has a minimum $5,000,000 of investable assets.
Private Placement Life Insurance Investment Accounts are complex and require customized structuring and significant ongoing administration. The initial policy design and ongoing policy administration often includes one or more policy changes, such as a reduction in the life insurance benefit or systematic withdrawals that may occur many years after the policy is issued. Ironclad Strategies is uniquely positioned to handle all of your insurance needs.