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PRIVATE PLACEMENT VARIABLE LIFE

 

At the core of almost every insurance solution is a policy utilizing a Private Placement Variable Life chassis. Whether the solution utilizes a single life, joint life or group policy, the primary benefits and features remain similar.

PPVL is an enhanced life insurance product that provides significant life insurance benefits, as well as a solution to maximize investment values on an after-tax basis. Investors seed policies over a predetermined schedule, usually three to seven years, and manage these assets within the confines of this structure. Life insurance, in general, allows for the tax-deferred build up of assets. Policy owners have the ability to regularly rebalance these assets as well as to access the capital through a combination of loans and withdrawals.

PPVL is a worthwhile alternative because of its institutional pricing and investment management options. When purchasing a PPVL policy through Stern Capital, the solution produces total structural cost of less than 100 basis points per year, assuming a policyholder is in good health. Cost parameters remain relatively consistent (for ages 18 -75) as long as the individual’s health is consistent with his or her age. Additionally, PPVL affords a full array of investment management options including:

  • money market funds
  • market indexes such as the S&P 500
  • mutual funds
  • alternative investment options such as:
    • single strategy hedge funds
    • fund of hedge funds
    • private equity investments

Today, businesses, public or private and large or small, utilize life insurance structures to optimize their risk-adjusted rates of returns.

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Global Solution

PPVL solutions can be delivered globally. The key components to any solution include prospective policy owner tax residence and the beneficiary’s future expected locale. Generically:

  • PPVL and PPVA solutions are available onshore and offshore US.
  • Canadian solutions are located both onshore and offshore.
  • Alternatives exist for Europeans in Europe and Asians in Asia.
  • Stern Capital assists in the creation of customizable solutions affording global families the opportunity to develop tax compliant local market solutions with US (or other potential markets) life insurance policies.
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