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Private Placement Life Insurance   

Problem:        High tax rate on investment earnings. 

Plan:               Private placement life insurance allows wealthy individuals with at least $1,000,000 to invest to put their money in domestic mutual funds (over 200 choices) inside a life insurance policy.  This eliminates 1099 income.  The fees for this life insurance wrapper are negotiable.  In addition to large tax savings, life insurance is added so that if the insured dies the proceeds pass to the beneficiaries income tax free.  The assets are also protected from lawsuit. 

Prospect:       Sophisticated investor who desires reduction of tax on investment income.

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