The Basic PPLI Structure
Explanation of the structure
- Grantor/Insured sets up an Irrevocable Trust.
- The Grantor/Insured pays the PPLI premium into the Irrevocable Trust.
- The grantor/Insured selects the Trust's beneficiary(ies).
- The trust pays a premium to the (#5) insurance company.
- Insurance Company reinsures (#6) the majority of its risks to ensure the ability to meet its obligations.
- The same U.S. companies reinsure onshore and offshore insurance companies’ obligation to pay death benefits. Therefore, offshore companies carry no more risk than U.S. companies.
- Insurance Company (#5) issues the PPLI policy.
- Grantor/Insured recommends an investment advisor of their choice.
- Investment Advisor invests the policy assets.
Benefits
This structure alone can optimize your financial strategies, protect wealth, and achieve long-term financial goals.
With the ability to invest in a wide range of assets, the policy can potentially achieve higher returns compared to traditional insurance policies.
And the assets in an Irrevocable Trust are protected from creditors, lawsuits, and other claims, providing a secure way to preserve wealth.