PPLI Delivers Enhanced Privacy
If legitimate, enhanced privacy is what you seek in your financial affairs, look no further than Private Placement Life Insurance (PPLI) for your solution. In the present day environment of financial transparency, attempting to hide assets only draws more attention to them.
Using a structure that provides privacy by its very nature is a much better way to achieve this aim. What was the attitude towards privacy in past times? We will give some examples below.
First, we will give you the steps that give enhanced privacy in PPLI structuring for wealthy international families:
- The PPLI policyholder contributes the assets that he or she wants to protect as a premium payment, in cash or in kind, to a bespoke investment fund created by the life insurer. The life insurer opens a dedicated account at a custodian bank for the underlying assets of the policy.
- The PPLI policyholder selects an investment strategy and nominates an investment manager. The life company formally appoints the investment manager.
- This internal investment fund is exclusively linked to the policyholder’s life policy. The value of the PPLI policy is equal at all times to that of the underlying internal investment fund.
- The life insurer has now become the Ultimate Beneficial Owner (UBO) of the underlying assets.
Privacy in the Past
What was privacy like in eras before our own? We are grateful for “The Birth and Death of Privacy: 3,000 Years of History…” by Greg Ferenstein courtesy of Medium for these quotes:
“Privacy, as it is conventionally understood, is only about 150 years old. Most humans living throughout history had little concept of privacy in their tiny communities. Sex, breastfeeding, and bathing were shamelessly performed in front of friends and family.”
“The lesson from 3,000 years of history is that privacy has almost always been a back-burner priority. Humans invariably choose money, prestige or convenience when it has conflicted with a desire for solitude.”
“The majority of Romans lived in crowded apartments, with walls thin enough to hear every noise. “Think of Ancient Rome as a giant campground,” writes Angela Alberto in A Day in the life of Ancient Rome.”
“There was no classical or medieval Latin word equivalent to ‘privacy’. privatio meant ‘a taking away’” ~ Georges Duby, author, A History Of Private Life: Revelations of the Medieval World”
“Few people demanded privacy while they slept because even separate beds wouldn’t have afforded them the luxury. Most homes only had one room. Architectural historians trace the origins of internal walls to the more basic human desire to be warm.”
“By the Renaissance, it was quite common for at least the wealthy to shelter themselves away in the home. Yet, even for those who could afford separate spaces, it was more logistically convenient to live in close quarters with servants and family.”
“Privacy-conscious citizen did find more traction with what would become perhaps America’s first privacy law, the 1710 Post Office Act, which banned sorting through the mail by postal employees.”
This last quote seems quaint in light of the large-scale, present-day concerns of unauthorized data sharing by social media sites.
With the exchange of client financial information by tax authorities with the implementation of FATCA, CRS, and registers of beneficial ownerships, we have a concern our firm works with frequently.
Our firm employs KYC safeguards and documents the source of funds for the PPLI policy. We also keep you compliment with tax authorities worldwide. Our firm can be confident of our success, because PPLI structuring greatly simplifies the process, and in addition, gives you the enhanced privacy that you seek.
We invite you to take advantage of our services, and would enjoy hearing your comments and questions about the topic of privacy. Feel free to place them at the bottom of the page.
by Michael Malloy CLU TEP RFC, @ Advanced Financial Solutions, Inc