Highly customizable insurance-based financial solutions to support long-term, tax-efficient wealth planning for family offices, high-net-worth individuals, and institutional investors
Highly customizable insurance-based financial solutions to support long-term, tax-efficient wealth planning for family offices, high-net-worth individuals, and institutional investors
Private Placement Life Insurance – or PPLI – is a highly customizable variable life insurance policy that can be used to support sophisticated and tax-efficient wealth planning.
As flexible insurance-based products, PPLI gains and returns accumulate on a tax-deferred basis, allowing qualified and accredited investors to support long-term wealth accumulation aligned with their chosen investment strategies.
Why Axcelus?
Axcelus Financial is a trusted, longstanding provider in the private placement space, delivering innovative and customized insurance-based solutions for high-net-worth and institutional clients. With our exclusive specialization in private placement insurance solutions, including PPLI, everything we do reflects that singular focus, from conservative risk management and transparent insurance architecture to flexible investment access and a high-touch service model.
“Private Placement Life Insurance – or PPLI – is a strategic wealth planning tool. When it’s used appropriately it may support sophisticated and tailored financial planning objectives for high-net-worth individuals and their families.”
– Michelle Pedigo,
Senior Managing Director
30+
years
exclusively in
private placement insurance
$18B+
in Assets Under Administration
as of December 31, 2025
A-
(Excellent)
Financial strength rating
from AM Best
300+
Investment options across IDFs, VITs and SMAs
An accredited investor or qualified purchaser purchases and contributes cash to a PPLI policy.
The insurance company issues and administers the policy.
Assets are held in a separate account, not subject to the insurance company’s creditors, and are invested with designated funds or managers.
The investment fund or manager executes the stated strategy. Policy value fluctuates with investment performance.
Client Background
Subject to the net investment income tax (3.8%)
Client Goals
Retain investment flexibility
A Solution: Invest Through a PPLI Policy
Assumptions: $10M premium over 4 years (non-MEC); $10M single premium (MEC); 8% hypothetical rate of return; 47.79% combined federal, CT state and investment income tax rate (75% portfolio turnover); asset-based M&E fee of 50 bps up to $10M AV, 40 bps above $10M, 35 bps above $40M; preferred health rating.
Year 10 | Year 20 | Year 40 | |
Taxable Account | $15.1M | $22.8M | $52.3M |
Non-MEC Account Value | $23.9M | $42.3M | $159.7M |
Non-MEC Death Benefit | $28.8M | $47.4M | $179.3M |
For illustrative purposes only. Every situation will vary. Prospective clients should consult their own independent legal and tax advisors. Assumptions are hypothetical and not intended to represent actual performance.
A Private Placement Life Insurance (PPLI) policy is a variable life insurance contract available to accredited investors and qualified purchasers. The policyholder contributes cash to the policy, with assets held in a separate account of the insurance company and invested in strategies of the policyholder’s choosing. As an insurance-based structure, gains accumulate on a tax-deferred basis and are generally distributed income tax-free to beneficiaries as a death benefit. PPLIis generally used to support tax-efficient wealth planning and intergenerational wealth transfer, alongside supporting corporate life insurance use cases.
The primary benefits of Private Placement Life Insurance are tax efficiency and investment flexibility, making PPLI a powerful tax strategy for sophisticated, long-term wealth planning. PPLI provides: tax-deferred growth on investments held within the policy; an income tax-free death benefit for beneficiaries; potential estate tax elimination and generation-skipping tax exemption, dependent on ownership structure; policy assets protected from insurance company creditors; no surrender charges; elimination of K-1s from underlying investment issuers; and access to policy values through tax-favored loans for non-MEC policies.
As a Private Placement Life Insurance provider, Axcelus operates a clear and transparent pricing structure. Specific pricing will vary based on case design, insured health rating and investment selection.
The minimum premium commitment for a PPLI policy with Axcelus (one of the specialist Private Placement Life Insurance providers in the U.S. and globally) is $1 million. Private Placement Life Insurance is designed for accredited investors (must have a net worth exceeding $1 million, or annual income exceeding $200,000 / $300,000 joint) and qualified purchasers (required to have at least $5m in investable assets) looking to deploy a PPLI tax strategy alongside significant allocations to alternatives. It is particularly well-suited to those seeking to invest in private markets within a tax-efficient insurance structure. Speak to the Axcelus team to discuss case design and suitability for a specific situation.
Key considerations include: life insurance medical underwriting requirements (PPVA may be an alternative for those who do not qualify); cost of insurance charges, which reduce net returns relative to direct investment; the fact that PPLI is not available in all U.S. states; and liquidity constraints, as withdrawals are subject to the restrictions of the underlying funds and/or managers. Access is restricted to accredited investors and qualified purchasers. Policyholders should also be aware that policies structured as Modified Endowment Contracts (MECs) lose access to tax-free loans — gains would instead be taxed at ordinary income rates.
Beyond the structural considerations above, PPLI carries specific investment and compliance risks. Under the investor control doctrine, policyholders cannot direct specific investment decisions — the investment manager must retain full discretion over the portfolio. Additionally, underlying investments must satisfy diversification requirements; failure to maintain compliance can affect the policy’s tax-advantaged status. As with any variable product, the value of a PPLI policy fluctuates with the performance of the underlying investments. Axcelus does not guarantee investment performance and the policyholder bears all investment risk. Policyholders should consult their own legal, tax and financial advisors to assess whether PPLI is appropriate for their individual circumstances.
Read our latest articles, POVs, case studies, and more to learn how insurance-based investment solutions can augment your clients’ investment portfolios, and offer the potential for improved after-tax, net investment performance.
Get in touch with Axcelus’ specialist team to explore if Private Placement Life Insurance is the right fit for your wealth management strategy.
