Definition

Frozen Cash Value Policy

A PPLI variant designed so that the policy's cash surrender value is deliberately minimized, often for gift, estate, and reporting purposes.

Full definition

A frozen cash value (FCV) PPLI policy is structured so that the cash surrender value is nominal or fixed — typically equal to premiums paid — while the death benefit still reflects underlying investment performance. FCV designs are frequently used in trust-owned structures where the owner wants to minimize gift-tax exposure on transfers and reduce annual reporting complexity, particularly in offshore contexts.

Related terms

PPLI (Private Placement Life Insurance)

A privately negotiated variable universal life insurance contract offered only to Accredited Investors and Qualified Purchasers.

Trust-Owned PPLI

A PPLI policy owned by a properly designed irrevocable trust so the death benefit passes outside the taxable estate.

Availability, tax treatment, and policy design depend on jurisdiction, carrier, investor qualification, and applicable law. simpleppli.com provides general educational information only — not tax, legal, insurance, or investment advice. Consult qualified tax counsel, insurance counsel, and licensed insurance professionals before implementing any PPLI structure.