Private Replacement Variable Life (ppvl)

Definition of "Private replacement variable life (ppvl)"

Eden Jordan real estate agent

Written by

Eden Jordanelite badge icon

Coldwell Banker Vanguard

Life insurance policy in which the cash value and in some circumstances the death benefit will vary according to the investment performance of an underlying portfolio usually comprised of equities. Thus, this product is considered to be a variable life insurance policy. In order for a PPVL policy to be sold in any state, the insurance company must be approved to distribute that product in the state and the product must be approved for distribution. Section 817 of the Internal Revenue Code, which discusses the tax treatment of variable policies, and Regulation 1.817.5, which discusses the diversification requirements for life insurance policies, variable dollar annuities, and endowment insurance policies, pertain to the tax considerations for the PPVL. All variable life insurance policies are considered securities and are subject to federal securities law. One life insurance product currently being directed on a private placement basis is corporate-owned variable LIFE INSURANCE.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few ...

Procedure whereby there is no amortization of the employer's liability for the supplemental cost of an employee's future benefits to be paid at retirement. ...

Same as term Yield on Assets: annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be ...

Same as term Cancellation Provision Clause: provision permitting an insured or an insurance company to cancel a property and casualty or a health insurance policy (circumstances vary; see ...

That which cannot be touched; having no meaning to the senses. It is represented by incorporeal rights in property (that which is evidence or represents value; for example, a copyright). ...

Annuity that begins payments after a single premium is paid. For example, the annuitant pays a single premium of $100,000 on June 1 of the current year and begins receiving a monthly income ...

Deductible that applies for the year. For example, a business pays for the first $40,000 of losses incurred during the year and the insurance company pays for all losses above that amount ...

Insurance company that underwrites and sells more than one line of insurance. ...

Actuarial method of crediting retirement benefits earned and the costs associated with these earned retirement benefits. An increment (unit) of benefit is credited for each year of ...

Popular Insurance Questions