Definition
Insurance Dedicated Fund (IDF)
A pooled fund created specifically to sit inside variable insurance contracts and satisfy §817(h) diversification.
Full definition
An Insurance Dedicated Fund is a private fund whose investors are restricted to variable insurance separate accounts and other permitted vehicles. IDFs are engineered to comply with the §817(h) diversification rules, letting hedge-fund, private-credit, and other alternative strategies be held inside PPLI on a tax-deferred basis.
Related terms
PPLI (Private Placement Life Insurance)
A privately negotiated variable universal life insurance contract offered only to Accredited Investors and Qualified Purchasers.
IRC §817(h)
The diversification requirement for variable insurance separate accounts.
Separate Account
The insurance-company sub-account whose investment results flow directly to the policy's cash value.
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.