Insurance and Investment Planning
Private Placement Life Insurance
PPLI can provide tax-deferred investment growth inside a qualifying life-insurance contract. Death-benefit income-tax treatment and estate exclusion depend on the contract, ownership, funding, and transfer facts entered below.
PPLI Projection Calculator
Project your policy's cash value and death benefit across 2,000 randomized market paths.
Configure Your Policy
Adjust inputs to model your PPLI scenario
Insured & funding
Six beginning-of-year installments of $833,333.
User-supplied; this model does not solve for a qualifying face amount.
Contract & ownership assumptions
MEC status affects lifetime distributions; by itself it does not remove the ordinary death-benefit exclusion.
Estate & funding context
Value at the model-derived comparison age, excluding this policy or taxable alternative. No growth is applied to this amount.
After any annual exclusions; added only to the ILIT strategy.
Return & cost assumptions
Same inputs and seed reproduce the same paths.
Discussing the result
Review the illustration with Altar Rock.
Altar Rock can compare carrier illustrations and coordinate the investment policy with the carrier, custodian, investment managers, and estate counsel.
Talk with Altar RockHow Altar Rock can help
Carrier Selection
Compare carrier-specific illustrations, COI assumptions, contract charges, and separate-account options side by side.
Investment Policy Statement
Altar Rock can help prepare your IPS and asset allocation within the policy. Under the Investor Control Doctrine (ICD), policyholders may not select individual managers — the carrier appoints managers consistent with your IPS.
ILIT Coordination
Working with estate counsel on ownership, premium funding, incidents of ownership, and transfer timing.
Compliance Monitoring
Coordinating carrier testing and ongoing review of §7702, diversification, MEC, and investor-control requirements.
How PPLI Works
A specialized variable universal life policy designed for sophisticated investors evaluating tax-deferred compounding and a properly structured estate-transfer strategy.
Fund the Policy
You pay premiums into a PPLI policy over a 6-year funding period. After the cost of insurance (COI) charge, the balance becomes cash value invested in available strategies — hedge funds, private equity, and diversified portfolios.
Tax-Deferred Compounding
A qualifying contract generally avoids annual tax on investment growth inside the policy. Policy charges and insurance costs still reduce cash value.
Coordinate Ownership
An ILIT can keep a death benefit outside the insured’s estate only when ownership, incidents-of-ownership, transfer timing, and premium-funding requirements are satisfied.
PPLI Planning Considerations
Tax-Deferred Growth
A qualifying contract can avoid annual tax drag while policy costs remain in the projection.
Estate Planning
The model tests estate tax with your other estate, prior gifts, policy funding, and ownership assumptions.
Investment Flexibility
Access hedge funds, PE, and alternatives typically unavailable in traditional insurance.
Creditor Protection
Creditor protection depends on state law, ownership, limits, and exceptions; obtain legal review for your policy.
Important disclosures
This calculator is for illustrative purposes only and does not constitute investment, tax, or legal advice. PPLI policies are complex instruments with specific IRS compliance requirements including §7702 qualification, diversification rules, and investor control limitations. Policy charges, mortality costs, and investment returns are approximations based on generalized assumptions. The face amount is user supplied; this model does not perform CVAT, guideline-premium, seven-pay, underwriting, or carrier qualification tests. A MEC generally changes lifetime distribution taxation but does not by itself remove the ordinary death-benefit exclusion under §101. Estate exclusion depends on ownership, retained incidents, transfer timing, and funding facts. Premium is modeled as six beginning-of-year installments, and 2026 estate-tax law is held constant through the projection. State estimates assume a resident estate with in-state property and omit inheritance tax, portability, special deductions, and deathbed-gift addbacks. Consult a qualified insurance professional and estate attorney before implementing. Altar Rock LLC is an SEC-registered investment adviser.