Domestic vs Offshore PPLI Fee Structures

Offshore Tax with HTJ.tax · May 10, 2026 · 2m

When comparing domestic and offshore Private Placement Life Insurance (PPLI) structures, one of the biggest differences comes down to:👉 Cost structure and regulatory environmentWhile both aim to provide tax-efficient insurance wrappers, the economics can differ significantly.⚖️ 1️⃣ State Premium Taxes🇺🇸 Domestic PPLIDomestic U.S. policies typically incur:• State premium taxes ranging from approximately:1% to 3%These taxes apply to:• Premium contributions into the policy🌍 Offshore PPLIOffshore structures generally:• Do not incur U.S. state premium taxes👉 This can materially reduce upfront…