Insurance Dedicated Funds
Unveiling the Potential of Insurance Dedicated Funds
Recognizing the evolving needs of our clients, we have embraced Insurance Dedicated Funds (IDFs) as a pivotal component of our investment strategies, focusing on after-tax benefits in collaboration with leading insurance providers.
The Essence of Insurance Dedicated Funds
Insurance Dedicated Funds have gained considerable traction in recent times, particularly due to the significant reductions in both time and cost of execution. At Worth Venture Partners, we have been employing IDFs to enhance the investment portfolio of our clients. These funds offer a blend of investment acumen and tax efficiency, designed to cater to the sophisticated investor.
Why invest in Insurance Structures
Investing in an Insurance Structure through a PPVA/PPLI and having gains accumulate tax-deferred or tax-free can be a compelling option not only because it may offer less tax friction, but also because it can remove the need for burdensome Schedule K-l's. Because the investor does not hold any ownership interest in the underlying investments, the investor avoids some administrative burdens associated with such investments.
Worth Venture Partners is able to allocate investor money to insurance structures that it believes will be suitable to the long-term investment goals of the specific policy holder. The common misconception that Insurance Structures are inflexible is untrue, and our experience in this area allows us to navigate this process.
A Spectrum of Alternative Planning Structures
There are two distinct insurance policy structures: PPVA (Private Placement Variable Annuity) and PPLI (Private Placement Life Insurance). Each of these structures caters to different investment needs and tax planning strategies:
- Private Placement Variable Annuity (PPVA): A tax-efficient investment vehicle that allows for the deferral of income taxes on investment gains.
- Private Placement Life Insurance (PPLI): The benefits of life insurance with investment flexibility. PPLI allows for the growth of investments free from income tax and offers the additional benefit of a life insurance payout.
Focusing on After-Tax Benefits
A core objective of Worth Venture Partners is to harness the tax advantages inherent in these structures. We diligently work to further your broader financial goals, so that your investments are not just growing, but growing efficiently in a tax-advantaged environment.
A Commitment to Excellence
At Worth Venture Partners, we are dedicated to understanding and fulfilling your unique financial aspirations.
Note: The tax, financial, and legal aspects of an investment in PPVAs, PPLIs or IDFs are complicated. Nothing herein is or should be misconstrued as legal or tax advice. This summary is included for general information only. Each person considering such an investment should consult with and rely solely upon its own tax, financial and legal advisors to understand fully the possible federal income and other tax consequences. Investment in alternatives, including hedge funds and private equity, can introduce increased risk of investment losses.