How COI Charges Impact PPLI Returns

Offshore Tax with HTJ.tax · May 27, 2026 · 1m

One of the most important—but least understood—factors affecting Private Placement Life Insurance (PPLI) performance is:👉 COI — Cost of Insurance chargesThese charges can materially affect long-term policy returns, especially over time.⚖️ 1️⃣ What Is COI?COI stands for:👉 Cost of InsuranceIt represents the recurring insurance expense charged by the carrier for:• Mortality risk • Policy administration • Insurance coverage obligations💸 2️⃣ How COI Affects Policy PerformanceCOI charges are deducted from:• The policy’s cash valueThis means:👉 Less money remains invested inside the policy.📉 3️⃣…