What is PPLI?
A Private Placement Life Insurance Policy, otherwise known as a PPLI, is technically an investment-linked insurance policy, which is designed to grow tax-efficiently, whilst fully complying with the regulatory and tax requirements of your home country.
For high-net-worth/ultra-high-net-worth individuals and families with cross-border needs, insurance-based solutions play a pivotal role in structuring and preserving wealth.
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.
Income, interest and dividends within the underlying funds accumulate tax-free, and unlike traditional life insurance, a PPLI can be used to hold assets that are personal to you, both financial and non-financial investments.
Under the protection of the PPLI structure, those investments benefit from unique tax advantages, such as deferring tax on investment gains, making this an effective vehicle for wealth protection and legacy planning.
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 face complex challenges in protecting and transferring their wealth, especially when it is spread across multiple jurisdictions. PPLI can safeguard legacies and streamline financial strategies for the following reasons:
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Privacy: Provides confidentiality through a compliant structure, shielding your financial details from public disclosure. Only the PPLI value is reported under global regulatory frameworks, such as Common Reporting Standard (CRS), maintaining confidentiality of individual holdings.
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Asset Protection: Offers robust protection against creditors and legal judgments, backed by law in many jurisdictions.
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Tax Planning and Control: Assets grow within the PPLI free from ongoing income or capital gains taxes, simplifying reporting requirements. You decide when to realise gains, potentially deferring tax for several years until relocating to a lower-tax jurisdiction.
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Estate Planning: Ensures a seamless, confidential transfer of wealth via trusts or beneficiary nominations, bypassing probate, forced heirship issues and family disputes.
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Cash and Liquidity: Offers flexibility to surrender (full or partial), access liquidity via policy loans, or add life cover as needed.
Frequently Asked Questions
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How PPLI is Structured
PPLI involves you the client, a policyholder, an insurer, and a customised investment portfolio typically managed by your preferred investment manager to align with your financial goals.
H Capital works with you, your advisor(s), and the insurance company to design the optimal structure tailored to your needs, ensuring compliance both now and in the future.