Tax Shield by Michael Malloy

PPLI Offers the Following Advantages

  • Adds tax deferral
  • Adds income, and estate tax benefits
  • Adds dynasty tax planning opportunities


The assets inside a life insurance contract offer the advantage of growing tax-deferred in most jurisdictions throughout the world.1 This applies to PPLI policies as well, and in a properly constructed policy shields the assets from all taxes. In most cases, upon the death of the insured(s) under a contract of insurance, the death benefit is paid out free of tax.2

Whereas planning with just trusts and foundations offers only limited tax planning opportunities, Expanded Worldwide Planning (EWP) offers a powerful Tax Shield. Adding a PPLI policy held by the correct entity in the proper jurisdiction creates an extraordinary dynasty planning opportunity.3


  1. Bortnick, “Tax Management: Building Wealth, Reducing Taxes,” in The PPLI Solution, Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance (The PPLI Solution) at 31 (Bloomberg Press, 2005).
  2. supra note 1.
  3. “Powerful Private Placement Life Insurance Strategies With Trusts,” (March 30, 2016)


by Michael Malloy CLU TEP RFC, @ Advanced Financial Solutions, Inc

Michael Malloy Contact Info