Variable Products

Private Placement Variable Universal Life Insurance

Private placement variable universal life insurance ("PPVUL") is a type of variable universal life insurance ("VUL") that is only offered privately and not through a public offering. PPVUL structures are individually customized financial instruments that can be utilized as a tax strategy that, when properly structured, can eliminate all taxes on income and growth. The assets can be compound tax-free without reporting requirements (such as K-1s). According to the IRS Private Letter Ruling, May 2, 2002, a PPVUL policy will provide compliant, tax-free compounded earnings for any U.S. individuals with investment income.

A PPVUL structure is variable, which allows the insurance company to invest the majority of the premiums in a legally separate, segregated account to be managed by a trusted investment manager or the insurance company itself. There are no guarantees when it comes to investment performance. PPVUL has cash value linked to the performance of one or more accounts within the structure and is offered without a formal securities registration.

With proper design and compliance with IRC Section 7702

  • Tax-free growth to magnify the benefits of compounding interest

  • Tax-fee treatment of death benefit

  • Flexible access to tax-free distributions via withdrawals and/or loans*

  • No policy surrender charges

  • Flexible access to tax-free distributions*

  • No policy surrender charges

Insurance-dedicated funds (IDFs) are investments linked to private placement life and annuity structures. IDFs enable hedge funds to manage a separate fund that follows the same strategy as a flagship fund.

*Distributions via withdrawals and/or loans are subject to the constraints of IDFs.

Private Placement Variable Annuities

Private placement variable annuities (PPVAs) are an investment vehicle designed for qualified investors, offering a flexible way to grow wealth while providing tax deferral. These annuities combine the benefits of variable investment options with the advantage of being privately offered, allowing for more tailored investment strategies and reduced regulatory costs. PPVAs allow investors to select from a wide range of investment choices, and the earnings grow tax-deferred until withdrawn. They are often used for long-term wealth management and estate planning, offering a combination of growth potential, flexibility, and financial security.

Like other variable annuities, the premiums are allocated into a separate, segregated account, which can be managed by a trusted investment manager or the insurance company. Investment performance is not guaranteed, and the value of the annuity is linked to the performance of the chosen investments. PPVAs are offered without the formal securities registration typically required for publicly available annuities, providing greater customization and lower regulatory costs for qualified investors.