Private Placement
Life Insurance
PPLI wraps your investments in a tax-free shell. Growth compounds without capital gains drag, and when owned by an ILIT, the death benefit passes to your heirs completely free of income and estate tax.
How PPLI Works
A specialized variable universal life policy designed for sophisticated investors seeking tax-efficient compounding and estate tax elimination.
Fund the Policy
You pay premiums into a PPLI policy over a 6-year funding period. After a small cost of insurance (COI) charge, the balance becomes cash value invested in institutional-quality strategies — hedge funds, private equity, and diversified portfolios.
Tax-Free Compounding
Inside the policy, investments grow completely tax-deferred — no capital gains, no dividend tax, no annual drag. This can add 1–2% per year of additional compounding versus a taxable account.
Estate-Tax-Free Transfer
When owned by an Irrevocable Life Insurance Trust (ILIT), the death benefit passes to beneficiaries free of both income tax and estate tax. The entire value escapes the transfer tax system.
Why PPLI?
Zero Tax Drag
No capital gains, dividends, or income tax inside the policy — pure compounding.
Estate Tax Elimination
ILIT ownership removes the death benefit from your taxable estate entirely.
Investment Flexibility
Access hedge funds, PE, and alternatives typically unavailable in traditional insurance.
Creditor Protection
In most states, policy cash value is protected from creditor claims.
PPLI Simulator
Project your policy's cash value and death benefit across 2,000 randomized market paths.
Configure Your Policy
Adjust inputs to model your PPLI scenario
Funded over 6 annual installments ($833,333/year)
How Altar Rock Can Help
PPLI requires coordination between insurance carriers, investment managers, custodians, and estate counsel. We bring these together seamlessly.
Carrier Selection
Access to top-tier PPLI carriers with competitive COI rates and robust separate account platforms. We help you compare carrier-specific illustrations side by side.
Investment Policy Statement
We craft your IPS and design the asset allocation within the policy. Under the Investor Control Doctrine (ICD), policyholders may not select individual managers — the carrier appoints managers consistent with your IPS.
ILIT Coordination
Working with your estate attorney to structure ILIT ownership for complete estate tax exclusion.
Compliance Monitoring
Ensuring ongoing §7702 qualification, diversification requirements, and ICD adherence throughout the life of the policy.
Explore More Calculators
Model different strategies to build a comprehensive wealth transfer plan.
This calculator is for illustrative purposes only and does not constitute investment, tax, or legal advice. PPLI policies are complex instruments with specific IRS compliance requirements including §7702 qualification, diversification rules, and investor control limitations. Policy charges, mortality costs, and investment returns are approximations based on generalized assumptions — actual carrier illustrations with quoted COI rates should be obtained for client-specific analysis. Premium is modeled as 6 equal annual installments. Consult a qualified insurance professional and estate attorney before implementing. Altar Rock LLC is an SEC-registered investment adviser.