PPLI Deep Dive – Investment Options for PPLI and PPVA: SMAs and IDFs
Published: April 25, 2024
Description:
Ben Rainey and Frank Hirsch, J.D. of WealthPoint with Dave Reynolds of Spearhead Administrative Services and Kevin Murphy of Provenio Capital take an in-depth look at the various investments available inside of Private Placement Life Insurance (PPLI) and Private Placement Variable Annuities (PPVA). They examine the two major platforms available to owners of PPLI and PPVA, the Separately Managed Account (SMA) and Insurance Dedicated Fund (IDF).
This presentation examines the remarkable adoption of the SMA and the impact on the industry, what investments are allowed within a SMA and how advisors and their clients avoid breaching the Investor Control doctrine and maintain proper diversification. The presenters discuss what funds are available and their role in a properly structured PPLI or PPVA contract and how the IRS views IDFs differently with respect to Investor Control and Diversification as compared to a SMA program.
Outline:
Please select any of the links below to view.
- Introduction
- PPLI Flow of Funds
- Investor Control and Diversification
- Insurance Dedicated Funds (IDFs)
- Separately Managed Accounts (SMAs)
- Funding Requirements by Carrier
- Closing Comments
Presented April 23, 2024
