Private Placement Life Insurance/Annuities

With income and capital gains taxes impacting investment performance, the tax-free build up of cash values in life insurance becomes an attractive option - whether for supplementing retirement income or as a wealth transfer vehicle for future generations.  However, “retail” life insurance products are inefficient investment vehicles due to traditionally high sales loads and policy charges, lack of transparency and inability to customize investment options.  

A Private Placement life insurance (or annuity) offering is a low-cost structure reserved for accredited investors and/or qualified purchasers.  The offerings provide all the same tax benefits, as well as access to sophisticated investment strategies and managers, flexibility and transparency.  

Tax Efficiency – Growth in underlying policy assets are not taxed during lifetime of the insured. The policy owner can withdraw and borrow against the assets of the policy income tax free.

Wealth Creation – Underlying investments consist of high yielding strategies (hedge funds, fund of funds, private equity, options, futures, commodities).

Asset Protection – Underlying investments may be afforded higher levels of asset protection by statute or the effective use of trusts.

Wealth Transfer – Insurance death benefit is distributed to beneficiaries without income tax.