What is Private Placement Life Insurance?

On 05/23

Investors Preferred Private Placement Life Insurance

Private Placement Life Insurance (PPLI) is a type of life insurance policy that is typically offered only to policyholders who meet the Internal Revenue Code’s definition of an accredited investors and/or qualified purchaser or are an institutional investor.   PPLI policies are customized, flexible, and tailored to the unique needs of each policyholder.  It is typically used as part of an overall wealth management strategy to help preserve and transfer wealth to future generations.

Anthony Stanek Joins Investors Preferred Amid Growth Initiative

By Tommy Mayes on 11/07/22

Investors Preferred Senior Managing Director Anthony Stanek

A new team member has joined Investors Preferred as part of the firm’s ongoing growth initiative.

How to Manage Retirement Account Withdrawals in Wealth Planning

By Alan Jahde, JD, LLM (taxation) on 10/07/22

Advisor and client in conversation

Investors are often programmed to think it’s almost never a good idea to take early withdrawals from a retirement account. It’s the role of advisors to help them understand when it might actually make sense to take the funds and accept the tax liability.

In these scenarios, advisors often recommend that their client move to a Roth IRA and pay the tax upfront on conversion.

But awareness is growing about an alternative solution: a “stretch annuity.” This is an expanded use of a private placement variable annuity (PPVA), and it may allow ultra-high-net-worth (UHNW) families with significant retirement accounts to defer and stretch the tax bill over multiple generations. 

How To Use an Annuity for Generational Wealth Transfer Planning

By Alan Jahde, JD, LLM (taxation) on 08/12/22

Grandfather with grandson

Oil and water, tinfoil and microwaves, pineapple and pizza (yes, I went there!) – these are just a few examples of things that simply don’t work together.   

In the wealth preservation planning arena, some advisors would add annuities and generational transfer planning to the list I started. It’s an understandable misconception since traditional use cases for annuities are quite narrow. But the reality is this: A private placement variable annuity (PPVA) can be used in a variety of unique ways that support specific planning goals.   

One of the use cases for PPVA we’ve been speaking to a lot of advisors about lately is the “stretch annuity.”  

Emotional Intelligence – Introvert or Extrovert?

By Tommy Mayes on 05/12/22

Microphone in front of a crowded room

Often I am surprised to hear how many public speakers and other people who have to present to large groups consider themselves to be introverts. I am also an introvert, so I thought I would share a few observations and recommend follow-up reading. Regardless of whether you are an extrovert or an introvert, you need to develop the skills and emotional intelligence to work with both.

In 2021, Investors Preferred Was Again a Fastest-Growing Life Insurer

By Tommy Mayes on 05/05/22

Investors Preferred team in conference room

For several years now, Investors Preferred has been named one of the fastest-growing life insurers. The same is true for 2021, as recently shared by Life Annuity Specialist.

What is Private Placement Life Insurance?

By Alan Jahde, JD, LLM (taxation) on 04/21/22

watch glasses pen on table

At Investors Preferred, while working with advisors of ultra-high-net-worth (UHNW) clients, we often hear comments of adversity toward the “i-word” (insurance).

Why would an UHNW individual or family decide to purchase a private placement insurance policy or annuity?

As with most investment structures, this is a solution for specific planning requirements. The short answer is private placement policies are cost-efficient and offer institutional pricing. Therefore, almost 100% of premium paid accrues to cash value in the early years. But, that’s just the high-level response; in this blog I’ll expound upon these important features, which make private placement insurance a valuable tool for wealth planning.

I Paid How Much for Life Insurance

By Alan Jahde, JD, LLM (taxation) on 03/24/22

Woman concerned at desk

My first experience with life insurance was as a recent college grad: single, no kids, and no pets. I have no idea why I bought life insurance at the time, other than the agent was a friend and I thought it’d help my chances of going on a date with her. Eventually I dropped the policy, the premium I had paid was wasted, and no cash value had accrued. It was an expensive lesson. 

Unfortunately, experiences like mine and the variability of costs associated with the traditional life insurance products has contributed to many advisors being unable to get past their dislike of insurance products. Because the “i-word” has become taboo, they may not even consider how non-traditional insurance solutions, like private placement, could help with wealth preservation planning for their ultra-high-net-worth clients.

Founder & CEO Alan Jahde Spotlighted as a ‘Tier One Interview’

By Tommy Mayes on 12/12/21

I know Alan best for his deep experience in private placement life insurance and, “How can we make this happen?” approach to any challenge.

That’s why it was so fun to read this new interview with him– even I learned several new things about the man I spend hours with each week!.

Investors Preferred Highlighted for Unique ‘Open Architecture’ Options

By Nikki Pethtel on 11/23/21

An article published by Financial Advisors showcases how the firm has pioneered the concept of non-comingled SMAs over the past five years.

Investors Preferred Named Fastest Growing Life Insurer in 2020

By Tommy Mayes on 08/18/21

Life Annuity Specialist released its final data for 2020, which puts Investors Preferred at the top of the list for largest sales gains last year.

Uptick in Demand for Private Placement Solutions?

By Tommy Mayes on 04/30/21

Founder and CEO Alan Jahde was interviewed for an article about how President Biden’s tax plan could impact the life insurance and annuity industries.

Life Insurance Sales Surged in 2020, with Investors Preferred In Top 5

By Tommy Mayes on 03/22/21

Life Annuity Specialist’s early look at 2020 data from the life insurance industry puts Investors Preferred among the top 5 firms for largest sales gains.

The New IRC 7702 Rules – Did Congress Make Life Insurance More Affordable?

By Alan Jahde, JD, LLM (taxation) on 01/15/21

An interest rate change with dramatically positive impacts for life insurance purchasers, carriers, and the industry overall was buried in the 5,600+ page U.S. Consolidated Appropriations Act passed in December.

What does it all mean?

Investors Preferred Was One of The Fastest Growing Life Insurance Companies of 2019

By Alan Jahde, JD, LLM (taxation) on 06/09/20

S&P Global Market Intelligence noted the firm in its annual rankings.

Rethinking the Realm of Advanced Wealth Management Solutions

By Alan Jahde, JD, LLM (taxation) on 09/27/19

Published by Financial Advisor, this interview covers how advisors can use private placement life insurance to address complex high net worth wealth planning needs.

Investors Preferred Was One of The Fastest Growing Life Insurance Companies of 2017

By Alan Jahde, JD, LLM (taxation) on 05/23/18

S&P Global Market Intelligence noted the firm in its annual rankings.


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