Insurance Policies are the New Hedge Fund Investments?

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The newly popularised structure of private placement life insurance policies has sparked interest with various US-based wealth advisors and private equity firms. The enticement being for HNWIs (High-net-worth-individuals) to invest in this new type of insurance vehicle that by default has the ability to cover hedge fund investments.

Clients are said to have put upwards of USD $3 billion into the products throughout 2017, however sceptics are saying that they are avoiding US taxes on the following payments:

Capital gains (CGT),
Ordinary income and
High-net-worth estates.
The scheme really is for ultra-high new worth due to the investment minimum being set at USD $2 million currently.