What is Private Placement Life Insurance (PPLI)?
From Swiss Annuity to PPLI
The original Swiss Annuity concept left little room for personal investment choices and tailored investment strategies. The amount invested in such an annuity would go directly into the general account of the insurance company, together with the funds of all other policyholders. There it would be managed by the insurance company's financial & investment department with little or no influence of the policyholder.
PPLI has taken the "insurance investment" concept to another level. Today, a variety of products exist in a number of international jurisdictions that combine the typical services of private banking, namely personalized investment advice and management, with the legal benefits afforded by properly structured life insurance and annuity policies.
The marriage of private banking and life insurance
Private Placement Life Insurance offers an integrated wealth planning solution that places discretionary portfolio management and private banking services within the legal structure of a life insurance policy or annuity.
PPLI should not be confused with the standard, retail-oriented policies that allow the policyholder to select from a pre-defined list of mutual funds, so-called 'unit-linked policies'. PPLI, which is available at a much higher minimum of generally around CHF 500'000, affords policyholder with a much wider and more exclusive selection of investment strategies and wealth management services.
In essence, the marriage of Swiss private banking and insurance has created a new wealth management discipline that some refer to as "Private Placement Life Insurance" or "Private Banking Insurance".
The original Swiss Annuity concept left little room for personal investment choices and tailored investment strategies. The amount invested in such an annuity would go directly into the general account of the insurance company, together with the funds of all other policyholders. There it would be managed by the insurance company's financial & investment department with little or no influence of the policyholder.
PPLI has taken the "insurance investment" concept to another level. Today, a variety of products exist in a number of international jurisdictions that combine the typical services of private banking, namely personalized investment advice and management, with the legal benefits afforded by properly structured life insurance and annuity policies.
The marriage of private banking and life insurance
Private Placement Life Insurance offers an integrated wealth planning solution that places discretionary portfolio management and private banking services within the legal structure of a life insurance policy or annuity.
PPLI should not be confused with the standard, retail-oriented policies that allow the policyholder to select from a pre-defined list of mutual funds, so-called 'unit-linked policies'. PPLI, which is available at a much higher minimum of generally around CHF 500'000, affords policyholder with a much wider and more exclusive selection of investment strategies and wealth management services.
In essence, the marriage of Swiss private banking and insurance has created a new wealth management discipline that some refer to as "Private Placement Life Insurance" or "Private Banking Insurance".
