Private Placement Life Insurance

Private Placement Life Insurance If you were going to purchase life insurance for estate tax planning purposes, you would want to arrange what is known as "Private Placement Life Insurance" (PPLI). Very simply, PPLI is insurance which you or your advisor directly negotiate with the insurance company, which should get you much lower fees than if you went through an insurance agent (if for no other reason than that the agent's commission are cut out, letting more money "work" inside your policy -- i.e., it becomes true "no load" insurance). Also, the insurance company and its actuaries will assist in structuring the PPLI so that you get more bang for your bucks.

The differences between PPLI and ordinary life insurance is huge, considering that MOST of your premiums often go to pay commissions. Simply, if your estate will be large enough that you will have estate taxes, you are better off getting one of the better "fee only" insurance advisors to help you set up PPLI.

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