Private Placement Life Insurance (PPLI) is a fully transparent, flexible insurance structure used for investment, tax, and estate planning for high net worth individuals

Increasing Marginal Tax Rates

High net worth investors are subject to exceptionally high federal, state, and provincial taxes.  Depending on jurisdiction these tax rates can exceed 50%, significantly eroding investment returns.  Further, governments continue to reduce or eliminate available tax planning strategies, most recently with Canada’s 2018 federal budget limiting corporate ‘income sprinkling’ through expansion of the Tax on Split Income (TOSI) rules and modifying corporate passive investment income rules for CCPCs.  Insurance structures are one of the last remaining tax planning strategies available to high net worth investors.

Life insurance utilizes existing tax code provisions available to insurance products which allows for the tax-free growth of investments made within the policy.  PPLI provides a low-cost, flexible, and fully transparent life insurance structure which enables high net worth investors to maximize the benefits of life insurance tax planning.