Private Placement Life Insurance and Variable Annuities

For the wealthy, Private Placement Life Insurance and Private Placement Variable Annuities are considered attractive vehicles to place investment capital for a variety of tax, estate, and asset protection strategies.

Private Placement Life Insurance and Variable Annuities can provide high net worth with the traditional advantages of insurance, coupled with unique investment options. These private life and variable annuities are limited-issue, non-registered life insurance, and annuity products that may only be offered to accredited investors, as defined by federal securities law. In addition to investment flexibility, another underlying principle of private life insurance products is to provide the buyer lower overall contract fees and other administrative fees found in traditional insurance products.

Private Placement Life Insurance products contain a separately managed account which can consist of alternative investment solutions, and a specific dollar amount of life insurance via the life insurance policy. These include single life, second-to-die life insurance products, and private variable annuity alternatives. Second-to-die products are typically used for estate planning purposes and insure two lives rather than one, with the policy proceeds paid after the death of both insured individuals.

A Private Placement Variable Annuity works much in the same way with all earnings tax deferred, plus providing other estate protection advantages.

There are many tax and financial planning benefits with these types of investments; however, there are other things that need to be considered. For example, anyone who wishes to obtain Private Placement Life Insurance must undergo a medical examination and other tests to be eligible for the insurance. A Private Placement Variable Annuity does not require any medical examination to qualify.

NAMCO’s Approach
NAMCO’s approach to Private Placement Life Insurance and Private Placement Variable Annuity products includes funding alternatives such as:

• Senior Secured Mortgages;
• Oil and Gas Energy Leases;
• Corporate Bonds; and
• U.S. Government Securities.

If you are considering any Private Placement Insurance Products, speak with your investment advisor to make certain that you understand exactly what this vehicle is and how it works. We want you to make the right investment decisions that work the very best for your particular situation.