Private placement insurance products occupy a unique place in the spectrum of financial tools. While having the same tax benefits as traditional insurance products, private placement insurance products offer unique policy structures and investment alternatives not found in retail variable universal life (VUL) and variable annuity (VA) contracts. Because they are unregistered securities products and are not subject to the same regulatory requirements as registered variable products, they can only be offered to individuals who are qualified purchasers and accredited investors, as described by the Securities Act of 1933. Private placement variable universal life (PPVUL) and variable annuities (PPVA) offer high net worth and ultra-high net worth clients access to both investment alternatives and customized product designs that are simply not available in traditional retail or registered products. While some of these investment alternatives and products can have specific risks because of their sophisticated investment techniques, wealthy individuals and families interested in tax-efficient investing are increasingly drawn to PPVUL and PPVA investment accounts, particularly in a rising tax environment.

If you’re interested in learning more about Private Placement Life Insurance and/or it could be an option for your client, please give Scott Greenberg, David Wexler or Keith Eig a call.