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Private Placement Life Insurance (PPLI)

Against the backdrop of a volatile economic and political environment, tax constraints and financial risks, many are looking for effective solutions to protect their capital and optimize its use. In this context, insurance solutions play an important role by providing investors and entrepreneurs with tools to ensure safety and flexibility in asset management.

Insurance products such as Private Placement Life Insurance (PPLI) and Unit-Linked Insurance Plan (ULIP) allow investors to create customized investment portfolios, circumvent tax restrictions, ensure data privacy, and reduce financial risk in asset reallocation. These insurance solutions provide clients with guaranteed protection and flexibility in managing their finances, making them an important tool for modern investors seeking stability and growth of their capital.

Unit Linked Insurance Policy (ULIP)

Unit Linked Insurance Policy (ULIP) – Is a life insurance policy with an open investment architecture. This product includes the benefits of an overseas banking, brokerage, credit account and insurance solution.

The open architecture of the policy allows investors to build portfolios on accounts with leading international banks with minimal brokerage and tax costs, high liquidity, simplified compliance and maximum legal protection.

ULIP is a first-class tool for HNWI investors worldwide and is recommended by leading Western banks as an alternative to personal asset ownership and ownership through CICs.

Private Placement Life Insurance (PPLI)

Private Placement Life Insurance (PPLI), is similar to ULIP, is an investment life insurance policy. However, unlike ULIP, PPLI is a personalized solution for investors of HNWI and UHNWI segments.

Not only cash and stock market investment instruments, but also other assets such as real estate, your own business, art collections, etc. can be packaged in the PPLI insurance policy shell.

PPLI is a unique legal asset ownership structure that combines the liquidity and flexibility of a bank account, the tax advantages of an insurance policy, the legal protections of a trust, and high privacy.

That said, by making a U.S. investment in a non-U.S. shell, such as making a purchase on a company or trust, the tax can be avoided. 
There is also an opportunity to reduce the risk of a tax assessment by buying shares of ETFs or mutual funds established outside the U.S. or through insurance policies.


PPLI is a unique investment vehicle that offers the pros of a personalized combination of bank, brokerage, loan accounts and has all the benefits of an insurance product.

One of the main purposes of opening PPLI policies is to build a tax efficient structure for foreign exchange investment portfolios:

  • Under the insurance policy, the financial results of all transactions for the entire term are balanced out
  • Heirs receive 101% of the capital tax free (e.g. in the US and UK the tax rate is 40%)
  • An inheritance of 101% of the current asset value occurs within 14 days of the policy owner’s death
  • There is no taxation of transactions when trading within the policy

PPLI is an account at an A-rated bank in an A-rated jurisdiction. Assets are placed with the best banks and world-class depositories.

The structure of a PPLI policy addresses the investor’s basic legal concerns:

  • Full protection of assets from claims of any third parties (business partners, spouses, other parties to legal disputes)
  • Sanctions Defense. The entire investment process is carried out on behalf of the insurance company
  • Asset Segregation. The client’s assets are legally separate from the insurance company’s assets and do not bear its risks
  • Simplified Compliance. Insurance products have simplified compliance and lower requirements for the amount of funds deposited

Up to 6% per annum – savings when building an investment portfolio in ULIP insurance accounts as compared to bank and brokerage accounts due to financial and tax advantages.

PPLI also solves today’s pressing asset transfer problem. It opens up the possibility of transferring an existing portfolio from any international or Russian bank/broker from personal or CIC accounts into an insurance policy.

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