Skip to main content
people on their laptops going over numbers

How to Use PPLI to Relocate Your Investment Portfolio to a Tax-Free Environment and Increase Your Net Worth

Presented by: Ben Rainey


In this short document, Ben Rainey provides a brief overview of Private Placement Life Insurance (PPLI). A condensed case study is presented illustrating the financial impact that utilizing PPLI has as a part of a client’s overall net worth.

Topics Covered:

  • Private Placement Life Insurance
  • Tax mitigation strategies using life insurance
Download PDF

As far as alternative investments go, PPLI works.

If you’re a high net-worth individual interested in tax-efficient estate planning, implementing a cohesive PPLI policy can help. Designed for affluent families, PPLI is an institutionally priced life insurance product that allows you to maintain access to all investment choices with your current investment advisor while eliminating income taxes on your investments.

By paying insurance costs instead of income tax on your investment portfolio, you can achieve a higher net rate of return as long as the charges are less than your tax burden. The tax benefits can be especially beneficial for families looking for income tax-relief on a portion of their liquid portfolio that’s held in a family LLC.

PPLI allows you to invest in any asset class, including stocks and bonds, ETFs, hedge funds, private equity, venture capital, private credit, managed futures, oil and gas, REITs, and more. Additionally, like retail life insurance, PPLI is protected by over 160 years of tax law precedent, providing you with peace of mind and certainty.

PPLI in Practice

Download PDF

The PDF linked above demonstrates one example of the benefits. The case study details an initial investment of $5 million in a brokerage account compared to $5 million in a PPLI product over the client’s lifetime, which is a 40-year time horizon. The clients are California residents in their 50s, looking for some income tax-relief on a portion of their liquid portfolio that’s held in a family LLC. The family’s investment risk tolerance is moderately aggressive, and their current gross weighted return of their portfolio provided by their investment advisory team is 7.48%.

By relocating $5 million of their portfolio to a Private Placement Life Insurance policy, the policyholders benefit from a lifetime of tax-mitigation, saving them $9.1 million in cash outflow. The compound annual growth of the tax savings generates an additional $32.8 million in net worth at their life expectancy.

Overall, PPLI is a tax-efficient solution for affluent families looking to maintain access to all investment choices while achieving a higher net rate of return. Download the PDF to learn more about how WealthPoint’s PPLI expertise can help you increase your net worth and achieve tax-efficient investing.

If you are interested in speaking with a PPLI expert, contact WealthPoint today.

Ready to discuss WealthPoint’s services?

Schedule A Call