To qualify for "private placement life insurance" (PPLI) in the United States, an individual must meet specific financial thresholds and comply with applicable regulatory criteria. These policies are not available to the general public—they are tailored for high-net-worth individuals, families, and institutions seeking sophisticated, tax-efficient investment vehicles paired with life insurance benefits.
Key qualifications include:
Key qualifications include:
- Accredited Investor Status: The candidate must meet the conditions to be considered an accredited investor, which usually entails earning at least $200,000 per year ($300,000 per year) or having a net worth of more than $1 million (not including the primary residence).
- Qualified Purchaser Status: In many cases, the applicant must also be a qualified purchaser under the Investment Company Act of 1940, usually requiring $5 million or more in investable assets.
- Minimum Premium Commitment: Most PPLI policies require a minimum premium of $1 to $5 million, depending on the insurer and structure. This ensures the policy has sufficient cash value to support the investment strategy and administrative costs.
- Sophisticated Financial Profile: Candidates often have complex financial planning needs, such as estate tax mitigation, international asset protection, or multi-generational wealth transfer goals.