What Is Involved In The Offshore Policy Acquisition Process?
Investors are drawn to PPLI for its tax benefits and investment flexibility. They are not drawn to PPLI for its life insurance benefit. However, the insurance component is critical and there are many technical insurance issues to address in the process of acquiring a PPLI product. It is advisable to engage legal counsel. Acquiring PPLI requires that the prospective insured undergo medical and financial underwriting typically in the Cayman Islands where the major carriers do business or in an agreed country outside the U.S. In addition, a policy issued by an offshore carrier should have an offshore legal owner, it is necessary for the investor to establish an offshore trust to own the policy. Moreover, there are several important insurance design elements that must be carefully addressed in the policy acquisition process.
