Private placement life insurance (PPLI) allows tax-free investment growth in segregated policy accounts, especially useful for portfolios holding hedge funds or other short-term high-return investments. Because assets in PPLI are in segregated accounts, they are protected against insolvency of the insurance company. When an irrevocable life insurance trust (ILIT) owns the policy, the policy and its proceeds are protected against unforeseen future creditors of the insured and beneficiaries. Foreign PPLI typically has a minimum premium commitment of at least $1 million.