Definition

Qualified Purchaser

A higher wealth threshold under the Investment Company Act — generally $5M+ in investments — required for §3(c)(7) funds and most PPLI.

Full definition

Under §2(a)(51) of the Investment Company Act of 1940, a Qualified Purchaser is generally an individual owning $5M or more in investments, or an entity that owns and invests at least $25M. PPLI separate accounts frequently invest through §3(c)(7) IDFs, which require every underlying owner to be a Qualified Purchaser.

Related terms

Accredited Investor

An investor qualification under SEC Regulation D that gates access to private securities offerings.

PPLI (Private Placement Life Insurance)

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

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.