Life insurance is a crucial safeguard for several people. It's an extremely essential safe guard that is needed for families, as it ensures financial well-being of the family. Of recent though, there have been policies that are often viewed as good investments with a significant volume of growth and return. The common structure of such life insurance policies is that the person insured goes on paying premiums to the insurance company, which are then invested and reinvested into well underwritten and fantastically analyzed investment destinations which include anything and everything, right form stock markets to currency markets or money markets. The returns are then shared with the insured people, over a time period with payments being made at specified time intervals. Often, you might come across news such as some rock star got his voice insured, or some millionaire got a life insurance cover of a few billion dollars, etc. Well, this is exactly what private placement life insurance is. Such an insurance policy is connoted to be a variable universal life insurance.
The private placement life insurance definition is exactly like the variable universal insurance, the only difference being that the private placement life insurance is the nobility of life insurance policies. These policies usually, have no formal securities' registration and are granted to customers who provide massive annual or one time premium, and in return have unimaginable death benefit plus huge return rate, making it almost a quasi-investment fund. This is basically a custom-made policy of the variable universal life insurance policies. The agreement of the policy is often independently drafted out; hence the coverage, premium, returns and other such features are decided within the company and the insured client. In several cases such insurance coverage runs over a couple of million dollars. The potential of the private placement life insurance policy is such that it is often made to be an offshore investment, leading to two types of private placement life insurance policies, namely, offshore and domestic. The offshore ones are often connoted to be more profitable by the virtue of rate of returns. However, there is bit of debate with regards to statutory implications and even the profitability of the same.
The private placement life insurance definition is exactly like the variable universal insurance, the only difference being that the private placement life insurance is the nobility of life insurance policies. These policies usually, have no formal securities' registration and are granted to customers who provide massive annual or one time premium, and in return have unimaginable death benefit plus huge return rate, making it almost a quasi-investment fund. This is basically a custom-made policy of the variable universal life insurance policies. The agreement of the policy is often independently drafted out; hence the coverage, premium, returns and other such features are decided within the company and the insured client. In several cases such insurance coverage runs over a couple of million dollars. The potential of the private placement life insurance policy is such that it is often made to be an offshore investment, leading to two types of private placement life insurance policies, namely, offshore and domestic. The offshore ones are often connoted to be more profitable by the virtue of rate of returns. However, there is bit of debate with regards to statutory implications and even the profitability of the same.