What is PPLI?
Private Placement Life Insurance (PPLI) is a wealth planning tool for high-net-worth individuals (HNWIs) and families. Used widely in jurisdictions like the Nordics, UK, and US, it integrates global investment portfolios into a life insurance policy issued by a licensed insurer.
Funded through a single premium—either in cash, bankable assets, or even non-bankable assets—PPLI allows for tax-efficient, globally diversified investments while ensuring compliance. Investments are managed under a discretionary mandate by a regulated fund manager.
Often PPLI combines benefits of trusts, corporations, or foundations while aligning with tax regulations in multiple jurisdictions. It is a key tool for wealth preservation, tax optimization, and succession planning.
Key Parties Involved in PPLI
1. Policyholder – Owns the policy, selects investments, and appoints beneficiaries.
2. Insured Person – The policy’s duration is tied to the insured’s life.
3. Beneficiary(ies) – Receive payouts upon the insured’s passing, ensuring seamless wealth transfer.
Who Benefits from PPLI?
PPLI suits individuals with assets over EUR/USD 1 million who seek tax-efficient growth, inheritance planning, and asset protection. It is ideal for those in high-tax jurisdictions, business owners, and families needing long-term wealth strategies.
Advantages of PPLI
1. Privacy & Protection – Assets held under the insurer’s name ensure confidentiality and legal shielding.
2. Investment Flexibility – Access to diverse assets, including private markets and digital assets.
3. Tax Efficiency – Enables tax-deferred growth and strategic inheritance planning.
4. Estate Planning – Direct distribution to beneficiaries without probate delays.
5. Liquidity – Allows withdrawals, collateral pledging, and unit transfers.
Combining PPLI with Other Structures
As aforementioned, PPLI works best alongside trusts, foundations, or corporate entities. For instance, a Cyprus International Trust (CIT) as a PPLI beneficiary ensures inheritance tax benefits and smooth succession planning.
Choosing a jurisdiction with strong tax agreements and financial security is crucial for compliance and regulatory benefits.
Policyholders can make partial withdrawals, use the policy as collateral, or transfer units, depending on jurisdictional tax laws.
Real-World Scenario
In 2015, Emily’s London house was worth €8 million, growing to €10 million by her passing in 2025. Her son, Tom, inherits it but faces 40% inheritance tax (IHT) in the UK which is €4 million.
A. Without Estate Planning:
Tom inherits the house but must sell it to pay the €4 million IHT (if he does not have enough funds to pay).
B. With Estate Planning (PPLI + Cyprus International Trust):
Emily set up a Cyprus International Trust and bought a €1 million Private Placement Life Insurance (PPLI) for €5 million.
The PPLI payout goes to the trust tax-free, and covering the €4 million IHT.
Tom receives the house debt-free and €1 million in cash.
The trust simplifies the process for Tom, avoiding a house sale in order to pay the €4 million IHT.
The Aspen Trust Group Advantage
With expert financial architects, the Aspen Trust Group offers tailored PPLI solutions to safeguard and grow wealth. We partner with licensed insurers to ensure regulatory compliance, adhering to evolving international tax and insurance frameworks. Our bespoke strategies provide long-term security for individuals and businesses alike. Connect with us today to explore how PPLI can enhance your financial future.