Private Placement Life Insurance (PPLI) is a unit-linked single premium contract, also known as tailor-made life insurance, insurance savings product or flexible insurance product.
Article 104 of the Liechtenstein Insurance Supervision Act provides for a high degree of discretion for insurance contracts ("insurance secrecy"). In addition, PPLI contracts offer maximum confidentiality.
For many jurisdictions Youplus’s PPLI policies can be designed as a tax-compliant product, as it is based on the legal regulations applicable at the policyholder's place of residence. In those cases PPLI products may allow for tax advantages (such as e. g. tax-free dividend and interest accumulation, tax deferral and income tax-free transfer of assets to selected beneficiaries).
Life insurance policies enable premium payments and investments to be made in various currencies.
There is a separate deposit account for each policy. Insurance policies are largely protected against creditors' claims or claims against other policyholders. The insurance contract can be used as collateral. There are no restrictions on the eligible assets as long as they can be managed on a custody account and the client complies with the anti-money laundering regulations in place.
Each policyholder chooses his or her own individual investment strategy based on his or her preferences and risk appetite. Alternatively, the policyholder has an asset manager develop an investment strategy based on his or her risk profile and investment targets. Upon request, Youplus Assurance AG delegates the asset management mandate to selected, highly qualified and renowned external asset managers.
Flexible investment opportunities
As a rule, there is no minimum yield guarantee. All sources of income (dividends, interest, etc.) generated by the underlying investments are reinvested. The policyholder bears the investment risk as the insurance benefits are directly linked to the value of the investments selected by him or on his behalf. Youplus Assurance AG does not guarantee the policyholder the performance of the invested assets.
Our policyholders regularly receive clear reports on the evaluation of their policies, which depend on the performance of the underlying investments.
Cost-effective life insurance policies
PPLI is capital efficient. PPLI has lower overhead costs and usually lower insurance fees than most other insurance products.
Flexible estate and inheritance planning
Youplus Assurance AG’s insuranced products offer a free choice of beneficiaries and of percentage of allotment. The beneficiary clause can be changed. The insurance cover begins with the receipt of the first premium. (Additional) Premium payments can be made at any time. The assets are available to the policyholder for the entire term of the policy, e.g. in the form of partial surrenders. Youplus Assurance AG offer its policyholders a high degree of flexibility in the design of life insurance policies and in the management of the underlying assets. These product features offer our clients many options when it comes to the appointment of beneficiaries, to the timing of transfers or to the selection of investment instruments. Youplus Assurance AG enjoy an excellent reputation in Europe and beyond. Our products are among the most frequently used asset management and estate planning instruments for European and international clients.
Youplus Assurance AG’s products are suitable for a wide range of clients and situations. Many clients use Youplus products primarily as an efficient and discrete way to transfer assets across generations. Other clients see the flexibility of our policies as an ideal way to simplify the financial aspects of moving from one country to another. Some clients choose to deposit a significant portion of their assets in our policies as they provide a comprehensive platform for estate planning. We have demanding international clients who enjoy the security and flexibility of an insurance policy which take into account the legal specifications valid in their respective places of residence. Many cosmopolitans and expatriates benefit from the unique advantages of Youplus policies that adapt to the mobility they require.
Estate planning: How does it work?
In general, a Youplus insurance contract is based on the payment of a single premium by the policyholder. Youplus Assurance AG is obliged to pay a fixed amount or a pension to a fixed beneficiary, if the insured person dies or – at a certain time – if the insured person is still alive. The term of a life insurance contract can be determined for a certain period of time or for the entire life of the person insured. The policyholder can choose the beneficiaries himself and is entitled to determine the different treatments of heirs and third parties. In addition, different amounts can be paid out to each beneficiary. It is also possible to designate several successive and deputy beneficiaries. The circumstances of the customer and the legal framework in the country of residence of the policyholder normally determine the special conditions. The policyholder may determine the timing of the transfer of assets and the level of control he wishes to maintain over the assets to be transferred.