When most people think of Financial Literacy Awareness Month, they picture budgeting apps, credit scores, or the power of compounding interest.
But for families with significant wealth, and the professionals who advise them, financial literacy goes far beyond those basics.
True financial literacy at the high-net-worth (HNW) and ultra-high-net-worth (UHNW) level includes understanding how to manage tax-inefficient investments, plan for intergenerational wealth transfer, and use advanced tools like Private Placement Life Insurance (PPLI) and Private Placement Variable Annuities (PPVA).
At Investors Preferred, PPLI and PPVA aren’t a side business—they are our business. In honor of Financial Literacy Month, we’re highlighting what this level of planning looks like, how these tools are structured, and when they should be considered.
Private Placement Life Insurance is a highly customizable life insurance structure available only to qualified purchasers and accredited investors. But it’s far more than just insurance—it’s a way to align a family’s investment, estate, and legacy planning strategies under one efficient umbrella.
Through PPLI, investors can allocate premiums into a broad range of investment options, including hedge funds, private equity, and real estate, through separately managed accounts (SMAs) or insurance dedicated funds (IDFs). These assets are held in a separate account, not the insurer’s general account, and can grow tax-deferred if structured properly under the Internal Revenue Code.
More importantly, PPLI policies are structured to comply with IRS diversification requirements and the Investor Control Doctrine, helping clients benefit from favorable tax treatment while remaining within regulatory guidelines.
We often hear from advisors and family offices who mistakenly believe:
Financial literacy means knowing what’s available—and knowing what’s appropriate. These aren’t products for every client. But when they fit, they can unlock extraordinary long-term value.
For clients who don’t need a death benefit but still want tax deferral and investment flexibility, a Private Placement Variable Annuity may be more suitable.
A PPVA offers:
PPVAs are particularly valuable for clients investing in tax-inefficient assets or those planning to retire in a lower-tax state. They’re also a fit for philanthropic clients who want to support charitable causes at death without making irrevocable commitments today.
We recently helped an advisory team structure a $10M PPLI policy for a client who had just exited a privately held business. The goal was threefold:
The result? A policy that integrates seamlessly into the family’s broader plan, helping to convert a liquidity event into a lasting legacy.
At Investors Preferred, we pride ourselves on helping RIAs, family offices, and estate planning professionals bring these concepts to life. We provide:
We don’t just issue policies. We empower planners with the knowledge and tools to deliver solutions that truly serve their clients’ needs.
As Financial Literacy Awareness Month draws to a close, we invite you to think bigger about what literacy means in the context of real wealth.
If your clients are ready to elevate their planning conversations, we’re here to help.
Contact us to learn how PPLI and PPVA can support your clients’ long-term goals—and strengthen your advisory relationships in the process.
