Selling Your Business? This Powerful Insurance Option Unlocks Multigenerational Wealth
ARTICLE SUMMARY
What is PPLI? Private Placement Life Insurance is a bespoke, cash‑value life insurance policy designed for high‑net‑worth individuals—typically requiring at least ~$3 million in funding over several years—with flexible investment options and significant legal structuring.
Tax advantages & flexibility: Assets inside a PPLI grow tax‑deferred (With no annual gain realization), policy loans provide tax‑free liquidity during life, and beneficiaries receive a tax‑free death benefit—often shielded from income and estate taxes.
Investment customization: PPLI allows investment in a broader array of assets—hedge funds, private equity, real estate, insurance‑dedicated funds—without triggering K‑1 reporting or loss due to capital gains taxation.
Multigenerational legacy planning: When paired with trusts (such as irrevocable life insurance trusts), PPLI structures facilitate efficient wealth transfer across generations, reduce estate tax exposure, and offer liquidity for heirs while still alive.
