Privacy ✓ Security ✓
Creditor-Protected ✓
Tax-Efficient ✓ Liquid ✓
Tax-Free Retirement Income ✓
Simple CRS Reporting ✓
Controlled Succession ✓
Consolidate Global Assets ✓
Alternative to a Trust ✓
The Solution:
Private Placement Life Insurance
For high-net-worth and ultra-high-net-worth individuals and families with more than US$10M in investible assets, insurance-based solutions can play a key role in structuring global assets and preserving wealth. Private Placement Life Insurance (PPLI) policies offer a highly tax-efficient, low-cost alternative to a trust, while allowing the owner to retain control.
To be clear, this is not about hiding money to evade taxes; this is about preserving family wealth for you and for future generations. And where required, to facilitate a tax-free income during your retirement.
Assets held within a PPLI generally grow without liability to report or pay tax on income, interest, capital gains, or dividends. These tax advantages make it an effective legacy-planning vehicle, supporting the seamless, tax-free transfer of assets to future generations. Unlike traditional life insurance, PPLI can also hold assets personal to you, including financial and non-financial investments such as real estate, classic car collections, works of art, and similar assets.
Ultimately, the tax treatment of the PPLI itself depends on your country of tax residence. Tax benefits vary by jurisdiction. For example, Australian residents may make tax-free withdrawals from their PPLI after 10 years. In the UK, tax residents pay no capital gains tax, or income tax on interest and dividends arising within the PPLI and may use an annual 5% tax-deferred allowance, which can be especially valuable for retirees seeking income.
What is a PPLI?
PPLI is an investment-linked insurance policy designed to grow wealth discreetly and tax-efficiently while protecting it from claims, in a fully compliant and legally regulated structure.
PPLI’s are typically issued by offshore insurance companies in jurisdictions that do not tax investment funds, such as the Channel Islands, the Isle of Man, and Ireland.
Testimonials
"David Bojan has handled our Hong Kong Retirement Plan for the past 20 years with care and competence, resulting in excellent returns over the years and a growing income.
Following a bout of ill-health several years ago, I was able to relax knowing that David was overseeing and adapting our portfolio, which has weathered well the financial disruption in recent times."
Terrence Duggan, Retired Cathay Pacific Pilot
"With David's input and guidance, my portfolio has grown considerably over the past 10 years despite a very tumultuous few years of economic recession, trade wars and a worldwide pandemic."
Cornel Marais,
Secondary School Curriculum & MYP Coordinator at Beijing City International School
"David Bojan has massively improved the return on my CX Pfund – roughly doubled the value of the contributions so far.
I am regularly informed on how things are progressing and given clear, timely advice when I need to make decisions.
I trust David and his team at H Capital and would gladly recommend you do the same."
Wesley Jones, Cathay Pacific Airbus Captain
Benefits of PPLI
Wealthy families often face complex challenges when protecting and transferring assets across multiple jurisdictions. PPLI can help preserve family wealth and simplify financial planning in the following ways:
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Privacy: Provides confidentiality within a compliant structure, helping keep financial details out of the public domain. Under global reporting frameworks such as the Common Reporting Standard (CRS), only the PPLI value is reported, preserving the privacy of individual holdings.
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Asset Protection: Provides strong protection from creditors and legal claims, supported by legislation in many jurisdictions.
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Tax Planning and Control: Assets can grow within the PPLI without ongoing income or capital gains tax, helping simplify reporting. You decide when to realise gains, potentially deferring tax until relocating to a lower-tax jurisdiction. In some cases, relocation may not be required. Australia, for example, allows residents to draw from their PPLI tax-free after 10 years. In the UK, residents benefit from no capital gains tax or income tax on gains and income arising within the PPLI, plus a 5% annual tax-deferred withdrawal allowance that can be useful for retirees seeking income.
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Estate Planning: Supports the confidential transfer of wealth through trusts or beneficiary nominations, helping avoid probate, forced heirship issues, and family disputes.
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Cash and Liquidity: Provides flexibility to access liquidity through full or partial surrender, policy loans, or added life cover as needed.
Frequently Asked Questions
Get In Touch
How PPLI is Structured
PPLI typically involves the client, policyholder, insurer, and preferred investment portfolio manager.
H Capital can manage your investments if required, but our primary role is to help arrange the most suitable PPLI for your circumstances. We liaise with the PPLI provider and your advisers to design a structure tailored to your needs while maintaining compliance now and in the future.