Definition
PPLI (Private Placement Life Insurance)
A privately negotiated variable universal life insurance contract offered only to Accredited Investors and Qualified Purchasers.
Full definition
Private Placement Life Insurance is a variable universal life insurance contract issued as a private securities offering. Its separate account can be invested in institutional strategies — hedge funds, private credit, private equity — that are unavailable inside retail insurance products. Because it is a compliant life-insurance contract under IRC §7702, investment gains accrue tax-deferred inside the policy, and the death benefit is generally paid income-tax-free under §101(a).
Related terms
Insurance Dedicated Fund (IDF)
A pooled fund created specifically to sit inside variable insurance contracts and satisfy §817(h) diversification.
IRC §7702
The federal tax definition of a life insurance contract — the gateway to all life-insurance tax benefits.
IRC §817(h)
The diversification requirement for variable insurance separate accounts.
Qualified Purchaser
A higher wealth threshold under the Investment Company Act — generally $5M+ in investments — required for §3(c)(7) funds and most PPLI.
Accredited Investor
An investor qualification under SEC Regulation D that gates access to private securities offerings.
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.