How America's High-Net-Worth Individuals Use Private Placement Life Insurance (PPLI) to Avoid Taxes

On February 21, 2024, the United States Senate Committee on Finance released its first investigative report on Private Placement Life Insurance (PPLI). The report, which took 18 months to complete, conducted a thorough examination of how America's high-net-worth individuals are using PPLI for tax avoidance. It found that while PPLI policyholders number only in the thousands, the total assets under management have reached a staggering $40 billion (approximately ¥300 billion), and that PPLI has become a serious abuse case, necessitating urgent tax reform to plug the related tax loopholes. In this article, we will carefully study this report together.