Offshore Private Placement Life Insurance (PPLI) and Onshore PPLI are two types of insurance policies that offer a combination of life insurance and investment features. However, there are some key differences between the two.
Offshore PPLI is purchased and held outside of the policyholder’s country of residence, while Onshore PPLI is purchased and held within the policyholder’s country of residence. Offshore PPLI policies are often located in tax-friendly jurisdictions, which can provide significant tax advantages, including lower tax rates, reduced reporting requirements, and asset protection. However, offshore PPLI policies may also be subject to additional fees and regulations.
Onshore PPLI policies are typically subject to the laws and regulations of the policyholder’s country of residence. While they may not offer the same tax advantages as offshore PPLI policies, they are often more transparent and easier to manage, as they are subject to local laws and regulations.
Ultimately, the choice between offshore and onshore PPLI will depend on the individual’s specific needs and circumstances, including tax implications, investment goals, and risk tolerance. Work with Matthew Jennings, JD, MBA, EA, RFC®, CEP®, CES™, aka Tax King Matt to determine the best option for your particular situation.