The term “asset protection” broadly includes building and preserving wealth, as well as protecting it against creditors. Private placement life insurance (PPLI) provides a vehicle for tax-free growth and tax-free transfer of wealth in complete compliance with U.S. tax law in addition to providing a life insurance benefit in case of death. Life insurance investments grow tax free. When PPLI is owned by an irrevocable life insurance trust (ILIT), policy proceeds are paid free of income and estate taxes upon death of the insured. Thus, an ILIT eliminates all taxes legally.
