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THE PPLI ADVANTAGE

IDF EXCHANGE

THE PPLI ADVANTAGE

Los Angeles

Private Placement Life Insurance Advantages

Private Placement Variable Annuity accounts (PPVA) provide after-tax investment returns to an investment portfolio. The strategic use of private placement may reduce or eliminate the adverse tax impact and tax-related filings associated with the investment.

The following are features of Private Placement Variable Annuity accounts:

• No surrender charges
• Exposure to a variety of strategies and asset classes
• Elimination of K-1s from underlying investment issuers
• Transparent pricing structure
• Flexible design structure

Private Placement Variable Annuity accounts offer access to tax-inefficient investments in a tax-efficient structure. They create more capital and can offer a philanthropic solution, where Private Placement Variable Annuity accounts can be used in various trust entities that historically have utilized retail insurance. Lastly, like any variable life or annuity product, they are available through 1035 (like kind) exchange from existing life or annuity policies to take advantage of lower pricing and greater flexibility of investment choice.

Private Placement Variable Annuity Overview:

Product Features

1. The following are some of the features of Private Placement Variable Annuity:

• No surrender charges
• Exposure to variety of strategies and asset classes
• Elimination of K-1s from underlying investment issuers
• Transparent pricing structure
• Flexible design structure
• Reasons for Private Placement Variable Structures

1.- Access to tax-inefficient investments in a tax-efficient structure 
2.- 1035 exchange opportunities

• Transfer existing annuity or life policy assets to take advantage lower pricing and greater flexibility with investment choices.
• Provide comprehensive oversight of clients total assets

3.- Efficiently achieve philanthropic objectives: Private Placement Variable Annuity accounts can be used in various trust structures         hat historically have utilized retail insurance
4.- Capitalize on new estate transfer tax exemption limits of $5,000,000 per individual and $10,000,000 per couple
5.- Gains/returns on the policy's investments accumulate on a tax-deferred basis.
6.- Provides a tax-free death benefit to the policy's beneficiaries upon the insured's death. The policy's cash value will vary in accordance with the performance of the policy's investment options.

• Private Placement Variable Annuity Attributes:
– No limitation on contributions
– Gains above basis taxed as ordinary income upon withdrawal

• Client Requirements
1.- Accredited Investor and/or Qualified Purchaser
2.- Suitability with clients profile
3.- Long-term investment horizon: often used as part of generational wealth transfer