1. Private Placement Life Insurance (PPLI)
Established in US in ‘90’s
Designed for High and Ultra Net Worth Clients
Provides Compliant Tax Free Compounded Earnings inside Life Insurance Policy (tax inefficient assets)
Investments Managed by IM of Client’s Choice (wide range of investments)
Asset Protection
Open Architecture, Full Disclosure
No loads, efficient pricing
Domestic or International
Sticky Money
FOR INFORMATION ONLY AND NOT FOR PUBLIC USE

2. Introduction to Insurance and PPLI
TYPE OF INSURANCE NEED
TEMPORARY
PERMANENT
TERM INSURANCE
UNIVERSAL LIFE
VARIABLE
WHOLE LIFE
PRIVATE
PLACEMENT LIFE
Temporary Protection
No Cash Value
Non-Renewable at Older Ages
Availability & Capacity Constraints
Permanent Protection
Non-Transparent Pricing
Premium & Death Benefit Flexibility
Cash Value (Tax Deferral)
Potential Rate of Return
Permanent Protection
Insurer Manages Assets
3-4% Guaranteed ROR
Capacity
Premium & Death Benefit Flexibility
Market Generated Returns
Permanent Protection
No Guaranteed ROR
Moderately Competitive Pricing
Availability & Capacity Constraints
Premium & Death Benefit Flexibility
Permanent Protection
High Investment Flexibility
No Guaranteed ROR
Highly Competitive Pricing (transparent)
Significant Capacity
Premium & Death Benefit Flexibility
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3. Typical Domestic versus International Pricing
*BOY, Pricing may reflect expenses in first year or amortized in attempt to enhance early year CSV’s
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4. FOR INFORMATION ONLY AND NOT FOR PUBLIC USE
U.S. vs. Canadian PPLI
Major Differences:
Diversification rules IRC 817(h)
Investor Control Rev. Rul
Insurance Dedicated Funds (IDF)
Definition of Life Insurance 7702(a) vs MTAR
None applicable in Canada
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5. Why Joint/Dual Compliant
IRS: Long Reach of Uncle Sam
Definition of Life Insurance 7702(a) vs MTAR, Exemption Test Section 306
FATCA
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6. Fact Pattern Male 55, non-smoker, standard risk
Premium $520,000 for 4 years
Interest rate 6%
US citizen living in Canada

7. FOR INFORMATION ONLY AND NOT FOR PUBLIC USE

8. FOR INFORMATION ONLY AND NOT FOR PUBLIC USE

9. FOR INFORMATION ONLY AND NOT FOR PUBLIC USE

10. FOR INFORMATION ONLY AND NOT FOR PUBLIC USE
Summary
First of its kind
Compliant on both sides
No investor control or diversification requirements
No DAC tax
No State or Provincial premium taxes
FOR INFORMATION ONLY AND NOT FOR PUBLIC USE