Private placement life insurance (PPLI) and private placement variable annuities (PPVA) offer high-net-worth individuals and institutions powerful tools for tax deferral, wealth accumulation, and estate planning. But while most discussions focus on tax efficiency, investment flexibility, or structuring strategies, there’s one critical element that underpins every well-designed private placement policy: reinsurance.
Reinsurance isn’t just a behind-the-scenes technicality. It plays a central role in ensuring policy stability, optimizing pricing, and supporting long-term carrier strength. At Investors Preferred, we’ve built our reputation in part on industry-leading reinsurance relationships that allow us to offer exceptional capacity, confidence, and continuity to policyholders and advisors alike.
Here’s why that matters.
In simple terms, reinsurance is insurance for insurance companies. A life insurer transfers some of its risk to a reinsurer in exchange for a portion of the premium. This does several things:
In the PPLI and PPVA space, where policies can be sized in the tens or even hundreds of millions, reinsurance becomes especially critical. The financial soundness of the reinsurer, along with the terms of that relationship, can materially affect a policyholder’s confidence in the structure.
Not all carriers in the private placement space are created equal. While some rely heavily on third-party administration or have limited access to institutional reinsurers, IPL takes a different approach. We’ve the time to build deep relationships with some of the most respected reinsurers in the world. These relationships are more than transactional, they're strategic.
Because of this, IPL has one of the largest and most flexible reinsurance capacities in the PPLI and PPVA marketplace. That means we can accommodate large face amounts, tailor policy designs with greater precision, and provide ongoing support even as client needs evolve.
Just as important, our reinsurers understand the unique characteristics of private placement. They know how to assess risk in the context of sophisticated trust structures, offshore ownership, institutional buyers, and custom investment allocations. That experience makes a difference when it comes to approving complex cases efficiently and responsibly.
For advisors, IPL’s reinsurance strength translates into real advantages at the case level:
For clients, especially those deploying $10 million or more into a private placement policy, reinsurance strength isn’t just a technical detail, it’s a foundation of the promise we’re making. Whether they’re building tax-deferred wealth, planning for multigenerational transfers, or offsetting future liabilities, they need to know their policy is built on a secure and scalable platform.
At IPL, we like to say that we’re not in the business of headlines, we’re in the business of outcomes. But when it comes to reinsurance, it’s worth highlighting the behind-the-scenes work we’ve done to give advisors and clients a truly differentiated experience.
We maintain close relationships with top-tier reinsurers that allow us to:
As private placement continues to grow as a preferred strategy for HNW and UHNW planning, we believe reinsurance strength will only become more important. And at IPL, we’re proud to be leading the way.
Want to learn more about how IPL’s reinsurance capacity can support your next case?
We’d love to connect. Reach out to explore how we can support your clients, and your practice, with the depth and durability your work deserves.
