GETTING STARTED WITH PPLI
BFI has over 20 years of experience in designing, implementing and maintaining PPLI structures for our international clients. Our integrated services provide a one-stop, full range offering, affording our clients a convenient and low-maintenance international investment experience. For US persons in particular, PPLI offers a powerful and tax-compliant offshore planning vehicle.
The objective is to implement a multi-jurisdictional structure that integrates the benefits of planning longevity, strong asset protection, flexible and unrestricted access to global investment opportunities, fluid inheritance, tax minimization and compliance with the rules. For that, the following core elements of PPLI must be thoroughly understood, reviewed and tailored to each personal situations and goals.
In the following article, we want to cover a few of the core elements and the service processes that go with it, to familiarize you with the most important initial and ongoing elements of PPLI.
INSURANCE CONTRACT: PPLI CONTRACT SELECTION
For US investors, or for situations that include any links to US persons, generally the following types of PPLI contracts are utilized:
Deferred Variable Annuity
Modified Endowment Contract
Non- Modified Endowment Contract
Restricted Cash Value Contracts
Universal Variable Life
Each is a different contract that can offer multiple, varying benefits depending on the different needs of the investor. Some forms of PPLI may have different requirements themselves. For example, some options may require the proposed insured person to take a medical examination outside of the US.
As you can imagine, understanding the different options and choosing the right contractual agreement is key in the success of the PPLI structure and its benefits to you as an investor. With over 20 years of experience in offshore wealth planning for US investors, BFI is recognized as a market leader in the ambit of PPLI. We have the expertise required to assist you in carefully selecting the insurance carrier and PPLI contract that best suits your planning needs and objectives.
INVESTMENT STRATEGY: SELECTION
Allocation & Global Investing
Offering streamlined access to private banking custody and brokerage services, to international investment strategies and managers, and flexible investing options across numerous geographic regions, sectors and asset classes.
With the rapidly changing political, regulatory and economic parameters we are seeing today, investing is no trivial matter. The right mix of preservation, growth and risk management is required.
It is our goal to ensure that, in addition to the legal structuring conducted in the realm of Private Placement Insurance, the investment objectives and more importantly, risk profiles of our clients are considered in the overall package.
Based on personal consultations, your optimal risk-reward profile and the respective investment strategy(ies) are designed. In order to then recommend the best possible fit with an investment manager, we draw from the expertise of a network of managers with tested and proven strategies. They are Registered Investment Advisors according to SEC rules so that they can legally assist US investors today and for the future. And many of them are select members of the Swiss Registered Investment Advisors Association (SRIAA), of which we through our affiliate are founding members.
Custody and Banking
Switzerland is the #1 choice of international investors for custody of their assets when investing internationally, and obviously the number of banks to choose from in Switzerland can, in itself, be a daunting task. We support our clients in making the right choices and provide a selection of the most appropriate banking institutions best suited to each individual’s situation.
The banking institutions we regularly work with are prestigious private banks with first-class infrastructure and solid finances; banks the likes of Pictet, Vontobel or Julius Baer.
OWNERSHIP STRUCTURE: ENHANCEMENT
Estate and Cross-border Planning
The needs and goals of high net-worth individuals and international families are unique in each case and require personally tailored solutions. Although Private Placement Life Insurance alone caters to a number of the key elements of international wealth planning, many cases may require further enhancements to fit particular circumstances.
PPLI can be included in estate planning and also in cross-border planning for international individuals with exposure to the US via their family or through their work. To accommodate these needs, we have assembled a first-class network of professionals in key fields that support us in supporting our clients in the realm of legal, tax and fiduciary matters.
Because we know our clients and their structures well, we at BFI commit ourselves to these processes for the long-term to ensure the best interests and needs of our clients continue to be met.
As a testament to the investment flexibility within PPLI, entrepreneurial investors and families may have their special investment needs addressed by Private Funds. This opens up the opportunity for investors to pool funds in order to have access to prime investment opportunities that might otherwise be available at the institutional investor minimum investment levels.
Through its subsidiaries, BFI has experience in establishing and advising Private Funds out of Malta, a sophisticated jurisdiction for fund administration.
Internationalization of Pension and Retirement Funds
We are pleased to assist our clients interested in adding international investment diversification to their Pensions and Retirement Funds. IRA’s and Pension Plans can generally include PPLI in their assets. For that, the IRA custodian or the Pension Plan administrator would be the contractual partner of PPLI. Contact us for more details on these options.
BFI COMPREHENSIVE SERVICES – OUR PROPOSITION
Our service approach has allowed us during the years to accumulate deep multi-disciplinary knowledge and understanding of the intricacies of proper international diversification, and more specifically, into the elements that can bring international Private Placement Insurance planning to the next level.
Design & Implementation
PPLI can be highly customized to meet the specific needs of each particular situation, opening up the door to expanded planning opportunities. The myriad of options call for professional guidance.
At BFI, we take a comprehensive approach to PPLI planning and the delivery of bespoke solutions. Our role is best compared to that of an architect or general contractor. We help you understand the options, design a plan, facilitate and coordinate the implementation, and moving forward, with its reporting and maintenance.
In designing PPLI, we try to secure the element of safety at the various levels: jurisdictions, institutions, structures, contracts and compliance.
BFI works closely with a selection of foreign insurance carriers in jurisdictions with strong insurance legislation, while custody is kept with private banks located in Switzerland, the indisputable number one jurisdictional choice for custody. The underlying policy assets are then generally managed by Swiss professional asset managers. Based on our business volume and longevity in the industry, our clients benefit from institutional flexibility and preferential terms.
Service & Administration
From its design, it is easy to see that a number of institutional relationships can be involved in the PPLI structure. Fiduciaries, insurers, banks, asset managers, etc. will be utilized, and those partners may be spread across different time zones and languages.
As your trusted advisor, BFI coordinates these different relationships during the life of the PPLI structure in pursuit of making our clients’ experience of international wealth planning and investing as comfortable and efficient as possible. At the same time, we provide a convenient one-stop, family office-type of experience for our clients.
Monitoring & Reporting
We understand that global investors value the availability of prompt, accurate and consolidated reporting information. It is critical for not only monitoring their investments, but also in making calculated decisions. We have the tools and procedures in place to facilitate continuous performance analysis and reporting, conveniently accessible online, 24 hours a day, 7 days a week. Some of those reporting options include:
Consolidated asset reporting
Global custody solutions
In our role as your trusted advisor and point of contact abroad, and in pursuit of making your experience of international diversification as comfortable and efficient as possible, we work closely and may include third party advisors, such as attorneys, estate planners, and the like, integrating a broad array of skills and disciplines – all conveniently under one roof.
Our dedication is to orchestrate our skills, experience and international network to the deliver PPLI structures that are in tune of your needs and objectives. We do understand that wealth planning is not a one-off exercise and are committed to a long-term relationship with our clients and their families.