Private Placement Variable Universal Life (PPVUL) is a specific type of life insurance designed to build cash value for the owners and/or beneficiaries of the life insurance policy.
The “Variable” component in the name refers to the ability to select investments which produce variable returns, thus affecting the cash value of the policy.
Policyowners purchase a policy and pay premiums either as a one-time payment or by way of a series of payments over 5 years.
The premium funds the following components of the policy:
- Life Insurance Coverage
- Investments into Segregated Accounts
- Administrative and Other Charges
PPVUL Policy Owners may choose from a wide variety of available investment options.
Cash Values could be utilized on a tax-free basis in the form of withdrawals or loans to fund lifestyle or personally managed investments.
Upon the death of the Insured, the insurance policy pays the death benefit, which is the sum of:
- The Life Policy Benefit (Insurance Component)
- The Segregated Account (Investment Component)