Yes PPLIease! A New Day for Private Placement Life Insurance Planning in Delaware

Delaware’s House and Senate have recently passed a bill that amends Section 702 of Title 18, which pertains to the State’s premium tax on life insurance policies issued in Delaware. The bill adds new Subsection 702(c)(3) to the Section, providing that the premium tax on private placement life insurance (“PPLI”) policies delivered in the State of Delaware shall be 2.0% on the first $100,000 of net premiums, and shall be 0.0% on net premiums exceeding $100,000. House Bill number 237 is currently awaiting the Governor’s signature at the time this article is being written. This change to Delaware’s PPLI premium tax makes Delaware much more competitive with other jurisdictions that have historically attracted virtually all of the PPLI trust planning business.

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Todd A. Flubacher, “Yes PPLIease! A New Day for Private Placement Life Insurance Planning in Delaware,” Delaware Banker Magazine (Spring 2016)