Navigating Wealth
Is Private Placement Life Insurance Right for Your Portfolio?
How does private placement life insurance work, and when does it beat a taxable account? David Valcourt, VP of Business Development at Financial Architects Partners and a life insurance broker with nearly 20 years in the private placement market, returns for part two with hosts Tad Fallows and Matt Shechtman. In this conversation, David explains what PPLI is (a protection product whose engine is the investment inside it), walks through the math of trading a 5% annual tax bill on private credit and hedge funds for a smaller fee bill, and makes the case for what belongs inside a policy and what does not, starting with the S&P 500. He covers why so many whole life buyers end up disappointed, who the players are (broker, carrier, reinsurer, investment manager, and the insurance dedicated fund or separately managed account), why the IRS investor control doctrine means you cannot pick the holdings, what the insurance itself costs, what happens if a carrier fails and how a 1035 exchange works, and how borrowing against the policy really works, including why it is not free money. Please Subscribe and Hit the Bell: https://www.youtube.com/@NavigatingWealthPodcast?sub_confirmation=1 ✅ Access Lightstone Direct Investment Opportunities: lightstonedirect.com/longangle Resources & Links Become a Member: https://longangle.com/navigatingwealth Get Episode Release Notifications: https://www.longangle.com/navigating-wealth-podcast ━━━━━━━━━━━━━━━━━━━━ Discover More From Long Angle YouTube: https://www.youtube.com/@NavigatingWealthPodcast Beyond Wealth Newsletter: https://langle.co/bwnews Research & Studies: https://www.longangle.com/research ━━━━━━━━━━━━━━━━━━━━ Socials LinkedIn: https://www.linkedin.com/company/long-angle Twitter/X: https://x.com/LongAngleHNW Instagram: https://www.instagram.com/longanglehnw/ Facebook: https://www.facebook.com/longanglehnw Long Angle is a private, vetted global community of accomplished entrepreneurs, executives and professionals who have reached meaningful financial milestones and want to navigate wealth with peers who understand their challenges, opportunities, responsibilities and ambitions. Hosted by the founders of the Long Angle community, Navigating Wealth explores how experienced investors, founders and operators approach the real questions wealth creates, from private markets and capital allocation to business exits and life design. Learn how private placement life insurance works from a broker who places it: what goes inside the policy, what the insurance and the fees cost, why you cannot direct the investments, how the policy survives a carrier failure, and how policy loans give you access to the money during your life. Most people hear "life insurance" and think of whole life and a disappointing dividend. This conversation makes a different case: for investors already holding tax-inefficient assets like private credit and hedge funds, the policy is a wrapper, and the question is whether the tax you save is worth the fees you pay.
