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PPLI is a Tax-efficient wrapper for  tax-inefficient assets

Private Placement Life Insurance (PPLI)

What is PPLI?

A PPLI policy can be a highly effective solution for both privately held business owners and high net worth individuals/families seeking tax efficient cash accumulation.

PPLI is an elegant type of variable life insurance contract that leverages the tax advantages of traditional coverage and provides access to a wider array of investment options. If structured properly, funds may be allocated across a highly customized pool of investments. Surplus premiums (premiums paid in excess of death benefit costs) are added to the policy cash value, growing tax deferred. PPLI can serve as an excellent strategy for mitigating ongoing income taxes, acting as a tax efficient wrapper for assets that:

PPLI Advantages

  • Bespoke investment portfolio
  • Tax deferred growth & tax free distributions (if structured properly)
  • Institutional Pricing (typically < 100 bps per annum)
  • Trades investment tax drag for costs of insurance
  • No Surrender Charges
  • Favorable Policy Lending Terms

PPLI Discovery Process

Step 1: The financial advisor and client collaborate to determine the client’s investment objectives, risk tolerance, as well as income tax & estate planning needs.

Step 2: A risk/return analysis is conducted. The financial advisor works with the client to create a customized policy that meets their specific investment goals and tax planning needs. It includes review of cost to set-up and administer.

Talk To An Expert:

PPLI in Action:

initial set up Grantors draft an irrevocable trust that will own a life insurance policy.   contribution of funds Funds are contributed to the trust, which are used by the trustee to purchase a PPLI policy.    investment The insurance company invests the funds in a separate account managed by an independent financial advisor. tax favored access to policy value Over time, any investments acquired in the account grow tax-free. The policyholder can access funds tax-free by taking loans against the policy’s cash value. Upon policyholder’s death, the death benefit is paid out tax free to beneficiaries named in the policy.

Centura's PPLI Experts:

Derek Myron, CFP®

Managing Director, CEO dmyron@centurawealth.com

Get started today!

Don’t wait, take the first step towards financial freedom.

Christopher Hyman

Director Insurance Solutions chyman@centurawealth.com

Disclosure: Centura Wealth Advisory is an SEC registered investment adviser located in San Diego, California. This brochure is limited to the dissemination of general information pertaining to Centura’s investment advisory services. Investing involves risk, including risk of loss. For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services.