Crown Global Bermuda is a provider of Private Placement Life Insurance (PPLI) aimed at high-net-worth investors, with strengths in tax deferral and estate planning but limited accessibility for smaller portfolios.
PPLI is a flexible insurance structure that combines life coverage with investment options such as hedge funds, private equity, and credit strategies.
Bermuda is a popular jurisdiction because of the island’s favorable insurance regulations and international reputation.
This review covers:
- How does PPLI differ from traditional life insurance?
- Private placement life insurance cost
- How to claim PPLI
- Pros and cons of private placement life insurance
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Crown Bermuda Ratings and Credibility
Crown Global Life Insurance (Bermuda) Ltd. is part of Crown Global Life Insurance Group LLC, which operates across Bermuda, the Cayman Islands, the US, and elsewhere.
In the AM Best credit rating report from September 2024, Crown Global’s Bermuda life entity holds an Issuer Credit Rating (ICR) of “a–” with a Stable outlook.
It signals a respectable but not top-tier strength in meeting obligations.
However, Crown Global has had regulatory challenges.
In 2021, the Bermuda Monetary Authority fined Crown Global and its Bermuda subsidiary US$400,000 for anti-money laundering and customer due diligence deficiencies.
These included failures in enhanced due diligence, record-keeping, timing of verification, and monitoring business relationships.
The company was required to revise its internal controls and AML/ATF policies.
So, while Crown Global Bermuda is reasonably well rated, potential investors should factor in both its regulatory history and the steps already taken to remediate past compliance gaps.
How Crown Global PPLI works
Crown Global Bermuda PPLI functions as a bespoke insurance wrapper for investment and estate planning.
Key features include:
- Investment flexibility: Policyholders can allocate premiums into alternative investments such as private equity, credit, hedge funds, or other approved external managers, depending on the policy structure.
- Tax-efficiency & estate planning: Because the investment growth inside the PPLI policy is typically tax-deferred, depending on the client’s domicile or jurisdiction, it’s often used for intergenerational wealth transfer.
- Qualified investor requirement: Crown Global’s PPLI is available only to accredited or professional investors who meet the policy’s minimums and who can satisfy the insurer’s financial and investment suitability criteria.
How much does PPLI cost?
The cost of a PPLI policy varies depending on the size of the investment, age and health of the insured, and chosen investment structure. Crown Global Bermuda typically requires high minimum premiums, often starting at USD 1 million or more.
- Policy charges – Mortality and expense charges, typically low compared to retail life insurance.
- Investment minimums – Substantial, designed for high-net-worth investors only.
- Fees – Usually lower than traditional retail funds, but depend on the investment manager and structure chosen.
Crown Global Insurance Bermuda Claims
Crown Global’s claims process follows standard life insurance procedures but is supported by its Bermuda operations for global policyholders. Beneficiaries typically submit:
- A claim form
- Death certificate
- Policy documentation
While details vary by contract, the claims process is designed to be clear-cut, given the company’s focus on private clients and institutional standards.
Pros and cons of PPLI from Crown Bermuda
Pros
- Tax deferral – Investments inside the policy grow tax-efficiently.
- Custom investments – Access to hedge funds, private equity, and alternative assets.
- Estate planning – Simplifies intergenerational wealth transfer.
- Asset protection – Bermuda structuring offers creditor protection in many cases.
- Global platform – Suited for cross-border families and expats.
Cons
- High minimums – Not accessible to average investors.
- Complex setup – Requires legal, tax, and financial advisors.
- Liquidity limits – Policy values are tied to long-term investment strategies.
- Regulatory nuances – Benefits depend on home country tax rules.
FAQs
What is the difference between PPLI and traditional life insurance?
Traditional life insurance focuses on providing a fixed death benefit and, in some cases, a savings or investment component with limited choices.
By contrast, PPLI combines life insurance protection with customized investment options that are typically unavailable in retail policies.
What are the common misconceptions about PPLI?
Many assume PPLI is just a tax shelter. In reality, it is a legitimate insurance structure regulated in top jurisdictions like Bermuda.
Can PPLI protect my assets?
Yes. When structured correctly, PPLI can provide an additional layer of asset protection, especially in cross-border estate planning.
Who should consider PPLI?
PPLI targets high-net-worth individuals, families with complex estate planning needs, and internationally mobile investors who want both investment flexibility and tax efficiency.
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