Wrap hedge funds/PE inside a tax-free life policy — no LTCG, no ordinary income.
PPLI is an institutionally-priced VUL wrapper (Zurich, Prudential Bermuda, Lombard International, Crown Global) that lets accredited investors hold hedge funds, PE, credit strategies inside a life insurance policy. Growth = tax-free. Withdrawals = tax-free via loans. Death benefit = tax-free to heirs. Minimum $2M–$5M premium commitment across 5 years, ~1% wrapper fee vs 40%+ effective tax drag on the underlying.
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Overfund whole life, borrow against cash value at 5–6%, arbitrage into real estate.
Overfund IUL to MEC line — tax-free retirement income via policy loans.
Business pays premium, executive gets death benefit — pennies on the dollar of tax exposure.
Borrow at SOFR+1.5% to pay life insurance premiums, arbitrage against policy crediting.
Business pays deductible premiums to owner-controlled captive — up to $2.85M/yr tax-free receipts.
Layer umbrella and excess policies for $5M–$50M liability coverage at $500–$5K/yr.
Take higher deductibles on rarely-claimed policies; pocket the premium savings.
Company-owned life on a critical exec — cash value grows tax-deferred, death benefit tax-free.