IDF Platform

5th Avenue Group

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Our highly qualified partners will introduce you to Premium Funding (PF) and Private Placement Life Insurance Policies (PPLI); for personal, family, and business security and tax mitigation. 

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Many advisors have written Premium Financed policies.  They and their clients may well be less than satisfied, particularly now that interest rates have jumped.  What is clear to our clients and advisors is that using assets as collateral can provide a far better outlook for their financial future.

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With Premium Finance there is always the concern about performance when interest rates are high.

 

This, of course can mean that the net returns after cost of money are negative and consequently the lender requires a further injection of cash or assets. This problem almost immediately falls to the client to rectify – which may not be possible.  Advisors learning of our model soon recognize that this product set would have been a far better choice.

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In times of rising interest rates our model that pledges collateral to a Prime bank, who then pay premiums from long-term capital at institutional rates, and with little or no out-of-pocket expense, is extremely interesting. 

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How does it work?

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Once you have gathered your client's details, we will create a simple, compelling, and personal report. Should you wish it, one of our partners will assist you in presenting the proposed solution to your client.

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It is well known that a properly structured life insurance policy with little or no out-of-pocket expense is invaluable to advisors and their clients. However, the value of linking this with a life insurance policy investing through a separate managed account – a PPLI - used as collateral, remains unvisited...until now: 

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• US tax law allows for the tax-deferred build-up of assets in a qualified Private Placement Life Insurance or Private Placement Variable Annuity (PPVA) 

• Income and gains on assets are not generally subject to tax until a distribution is made from the policy

• This delivers tax benefits to both US and international investors

• This tax-deferred compounding means assets can grow much faster than assets that are taxed on a current basis.

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Combine the PPLI with the Premium Funded policy and it is hard to imagine a more effective and legitimate tax mitigation vehicle.