Private Placement Life Insurance Growing In Popularity, Lion Street Study Says

AUSTIN, TX – January 20, 2022 – Lion Street announced today that it had completed a study on the U.S. PPLI market and published its findings. The report was created in association with Life Insurance Strategies Group and includes comprehensive findings on a number of areas, including:

• PPLI Carrier Parameters and Statistics
• Policy Structure
• Permissible Investments
• Impact of Internal Revenue Code § 7702A Changes

In addition, the report discusses several emerging market trends such as the growing application of separately managed accounts (SMAs) as an underlying investment option, the increase in synthetic reinsurance and high-net-worth (HNW) family policy aggregation.

“PPLI is increasing in popularity as a result of a number of factors,” said Michael Fontanini, MT, CFP®, CLU®, Lion Street’s Vice President, Advanced Sales and Design. “There have been a number of proposed negative tax law changes that, combined with a recent enhancement to the statutory definition of life insurance and the expansion of customized policy investment options, are attracting more interest in PPLI as a sophisticated life insurance solution for a sophisticated clientele.”

The life insurers participating in the study were Crown Global Insurance Company of America, Pruco Life Insurance Company (Prudential) and Zurich American Life Company. Also participating were PPLI fund administration companies, SALI Fund Services and Spearhead.

“The goal of Lion Street’s U.S. PPLI Market Report is to assist advisors and prospective policy owners in understanding the current PPLI opportunities and applications as it pertains to them and their clients,” said Jay C. Judas, Life Insurance Strategies Group’s CEO. “Financial professionals are recognizing the benefits that a PPLI policy can provide with the ability to use alternative, otherwise tax-inefficient, strategies as underlying investment options to help support the death benefit protection and wealth accumulation needs of their HNW clients.”

A copy of Lion Street’s U.S. PPLI Market Report can be accessed here.