A Look at Private Placement Life Insurance

Private placement life insurance is offered privately. This is a type of variable universal life insurance that offers a distinct set of benefits to interested consumers. The main benefit of a private placement life insurance is the tax benefits that it offers.

Tax Benefits

Private placement life insurance allows the assets within the policy to grow without being taxed. For those looking to manage a large portfolio this is a great option. Additionally, all death benefits that are paid out from a private placement life insurance are also tax free. So, not only does this help you while living, but it does the same for your beneficiary. Another benefit of private placement life insurance is the exemption of short term capital gains.


The premium for a private placement life insurance will begin somewhere around $1 million and go all the way to $5 million, or more. For many, this is simply to expensive. Those who are interested can pay all at once, upfront or over the course of several years at the beginning of the policy.