When Control Isn’t Enough: The Unspoken Anxiety of Wealth
You’ve worked hard, made smart decisions, and built real financial success. But as your net worth grows, so does your exposure. The risks aren’t always loud or obvious—but they’re real.
Tax burdens. Legal threats. Gaps in estate planning. All of these can quietly chip away at what you’ve created.
And here’s the part that makes many successful people uneasy: traditional tools may no longer be enough. Insurance policies, trusts, and diversified investments are valuable—but they don’t always solve the deeper need for control, privacy, and protection.
That’s where Private Placement Life Insurance (PPLI) comes in—a quiet, yet powerful strategy that can help high-net-worth individuals shield their wealth, reduce tax drag, and protect their legacy.
What Is Private Placement Life Insurance (PPLI)?
Private Placement Life Insurance is a type of variable universal life insurance tailored for high-net-worth individuals. Unlike traditional policies, PPLI is highly customizable and built around your specific investment goals.
It offers two major advantages:
- A tax-advantaged environment for investment growth
- A legal structure that may protect assets from future creditors
PPLI is not offered through retail channels. It is custom-structured through private contracts, often in collaboration with attorneys and financial professionals. The policy is designed to hold a range of investments and align with your larger financial goals.
How PPLI Creates a Tax-Advantaged “Wrapper”
At its core, PPLI wraps your investments inside a life insurance contract. That wrapper provides:
- Tax-deferred growth of the assets
- Tax-free distributions (when structured properly)
- No annual capital gains reporting
- Income-tax-free death benefit for heirs
This structure gives you an efficient, long-term vehicle to grow and transfer wealth—all without triggering taxable events along the way.
How PPLI Enhances Asset Protection
Beyond tax efficiency, PPLI may offer legal protection. When properly structured, the assets inside a policy are often shielded from future creditors under state insurance laws.
This is especially meaningful for:
- Physicians
- Executives
- Business owners
- Anyone facing professional liability
While not a guarantee, the protective features of PPLI can serve as a vital layer of defense when combined with a broader legal strategy.
Tailored to Your Life: Custom Investments Inside the Policy
Unlike retail life insurance, where your investment choices are limited, PPLI policies allow qualified investors to:
- Select from hedge funds, private equity, and real estate
- Use separately managed accounts
- Align the policy’s holdings with your unique objectives
This flexibility makes PPLI ideal for those with complex portfolios and tax-inefficient holdings.
You’re not handing over control—you’re retooling it with purpose.
Who Is PPLI Designed For?
PPLI is not for every investor. It’s typically best for those who:
- Have a net worth of $5–10M+
- Hold tax-inefficient or alternative investments
- Are focused on multi-generational planning
- Need enhanced privacy and liability protection
It’s especially valuable for:
- Entrepreneurs planning a liquidity event
- Families facing large capital gains
- Investors seeking sophisticated estate planning tools
Legal and Compliance Considerations
PPLI is powerful—but it’s not plug-and-play. You must:
- Comply with IRS guidelines for life insurance
- Avoid direct management of policy investments (Investor Control Doctrine)
- Fund the policy appropriately and avoid becoming a Modified Endowment Contract (MEC)
That’s why at Finley Davis, we work side-by-side with your tax and legal advisors to design PPLI solutions that meet your goals and stay within regulatory bounds.
Private Placement Life Insurance: For the Quietly Prepared
The clients we work with don’t just want to grow wealth—they want to protect it, preserve it, and pass it on with intention.
If you’re only using traditional tools, you may be missing out on one of the most efficient and discreet strategies available.
A Private Placement Life Insurance policy for asset protection might be the smart next move in your legacy planning.
Looking for a more discreet, powerful way to protect your assets? PPLI might be the sophisticated solution your portfolio is missing.
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Past performance is no guarantee of future results. Personnel of RiskBridge Advisors, LLC (“RiskBridge”) prepared this material. The views expressed herein do not constitute research, investment advice, or trade recommendations. RiskBridge may, from time to time, participate or invest in transactions with issuers of securities that participate in the markets referred to herein, perform services for or solicit business from such issuers, and/or have a position or effect transactions in the securities or derivatives thereof.
This material is distributed for informational purposes only. All material presented is compiled from sources believed to be reliable, but accuracy cannot be guaranteed, and RiskBridge makes no representation as to its accuracy or completeness. Any opinions, recommendations, and assumptions included in this material are based upon current market conditions, reflect the judgment of RiskBridge as of the date indicated, and are subject to change without notice. You acknowledge and agree that RiskBridge is not obligated to provide any additional information or update such information in making the information available. Securities and/or indices highlighted or discussed in this communication are mentioned for illustrative purposes only and should not be construed as investment recommendations. All investments involve risk, including the loss of principal. Before implementing any strategy, consult with a qualified financial adviser and/or tax professional. This information is not intended to provide investment, tax, or legal advice, and this material is not to be relied upon in substitution for the exercise of independent judgment. This material is not to be reproduced, in whole or part, without the written consent of RiskBridge.
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