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The PPLI Solution: Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance

Kirk Loury (Editor)
ISBN: 978-1-57660-173-0
400 pages
February 2005
The PPLI Solution: Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance (1576601730) cover image


Private placement life insurance (PPLI) was once the exclusive domain of wealthy investors willing to tackle the logistical challenges of the offshore insurance market. The investment portfolio, tax, and estate-planning applications, and ongoing investment potential of these policies made the effort worthwhile. In recent years, though, a number of U.S.-based insurance companies have developed similar policies that meet all U.S. insurance, investment, and tax regulations.

PPLI is becoming a fundamental component of effective tax, trust, and estate planning, but few sources have been available to detail the best practices—until now. The PPLI Solution can serve as a resource for effective execution. Written by leading practitioners, the book will position advisers to capitalize as PPLI expands further into the high-net-worth market and becomes available to individuals with an investable net worth as low as $1 million.

Few investors—whatever their net worth—will want to venture into the PPLI market without guidance. The PPLI Solution addresses the needs of investment managers, consultants, attorneys, and accountants who want to achieve the broad understanding of PPLI's applications required of those providing advice. It can serve as an authoritative source for anyone—including investors—seeking to know more about PPLI’s nearly perfect tax efficiency, solid creditor protection, and powerful means of creating wealth.

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Table of Contents


About the Contributors.

Part One: The Multipurpose Policy.

1 An Introduction to PPLI (John B. Lawson).

2 Risk Management: Redefining Safe Harbors (Jeremiah Riddle).

3 Tax Management: Building Wealth, Reducing Taxes (Jeffrey S. Bortnick).

4 Asset Protection: Riches Out of Reach (Gideon Rothschild and Daniel S. Rubin).

5 Estate Planning: When Insurance Tames Taxes (Mike Chong).

6 Trust Administration: The Domestic Advantage (Al W. King III and Pierce H. McDowell III).

7 Executive Benefits: The Plan That Pays Its Way (Leslie N. Brockhurst).

Part Two: A Vital Investment Vehicle.

8 Toward a More Powerful Portfolio (Kirk Loury).

9 Who’s Afraid of Hedge Funds? (George Van and Daniel T. Hayden).

10 In Search of Skilled Investment Managers (Ronald J. Surz).

Part Three: Under the Hood—The Essentials on PPLI.

11 Policy Structure: The Good, the Bad, the Ugly (Paul F. Berlin).

12 Getting It Right: A Regulatory Overview (Maureen Nelson).

13 Investment Due Diligence: Beyond the Questionnaire (Keven de la Cruz).

14 Creating and Administering an Insurance-Dedicated Fund (Brent Kinetz).

15 Underwriting the Policy (Mike Chong and Anne Melissa Dowling).

16 Understanding and Comparing Costs (Susan Bruno).

17 Jurisdiction: Home or Away? (Peter M. Williams).

Part Four: Setting Up Shop.

18 Making a Place in Private Banking (Richard Brindisi).

19 The Family Office: A Perfect Fit (Kirk Loury and Mark Watson).

Continuing Education Exam.


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Author Information

Kirk Loury is president and chief investment officer for Spencer Trask Asset Management, a wholly owned registered investment adviser of Spencer Trask & Co. Spencer Trask is a venture capital firm serving the private-equity needs of high-net-worth individuals and investment advisers. As chief investment officer, Loury directs the investment analysis of hedge funds and venture capital as asset classes, sets investment policy and practices, oversees portfolio administration, manages due diligence activities, and maintains the firm's external investment and distribution relationships. As a champion of private placement life insurance, Loury has taken on a broad industry role as an educator and portfolio adviser. He was an account executive at IBM and later joined New York Life. He received his BS from the University of Colorado, Boulder, and his MBA from the Harvard Graduate School of Business Administration.
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"A timely and well-written volume, especially for the 'hedge fund age' that now dominates the current investment climate. It is difficult if not impossible to take advantage of these new opportunities without proper guidance, and Van's and Hayden's chapter about incorporating hedge funds into private placement life insurance is a primer for those attracted to the subject. The due-diligence guide contains practical insights and a 'what to watch for' section that can serve to avoid costly mistakes."
Michael G. Tannenbaum, Esq.
Partner, Tannenbaum Helpern Syracuse & Hirschtritt LLP
President, Hedge Fund Association

"Well conceived, well researched and well written. If you want to understand the benefits and risks of private placement life insurance, this is the place to start."
Glenn S. Daily, CFP, CLU, ChFC
Fee-only insurance consultant, New York, NY

"A unique and comprehensive guide to a complex subject."
Preston Tsao
Chairman, Metropolitan Circle of Private Investment, New York

"The PPLI Solution is a comprehensive multidisciplinary look at the emerging world of private placement life insurance. It is a must-read for anyone considering or advising on the purchase of one of these policies. Understanding private placement life insurance as a wealth management tool requires legal, investment, and insurance industry knowledge, and this book provides it all in a concise manner."
Steven M. Loeb, JD, LLM
Partner, Cleary Gottlieb Steen & Hamilton

"This book does an excellent job of demystifying PPLI. True professionals are attempting full disclosure and transparency in an area that begs for it. For families and their advisers who need to fully understand PPLI, this book is a winner."
Thomas R. Livergood
CEO, The Family Wealth Alliance

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