- WSG Advanced Markets
Advanced markets begin with a harder standard.
Premium financing and, only after specific compliance approval, PPLI/PPVA-related collaboration for appropriately qualified clients through properly licensed parties.
- Purpose before product
- Eligibility before access
- Diligence before implementation
- Three advanced workstreams
Different structures. Different risks. Different approval paths.
Select a workstream to see what it is designed to evaluate. None begins with a transaction.
- PREMIUM FINANCING
Can outside capital support premiums without creating an unacceptable obligation?
Premium financing uses third-party credit to fund some or all premiums. The insurance need must stand on its own, and the borrower must be able to carry, collateralize and exit the loan under adverse conditions.
Planning purpose
Document the insurance need before financing.
Credit capacity
Review collateral, guarantees and liquidity.
Stress testing
Model rates, policy performance and calls.
Exit design
Define repayment without forced assumptions.
- PPLI COLLABORATION
Can a private life-insurance contract serve a legitimate protection & long-term asset-location objective?
PPLI combines life-insurance coverage with a private variable separate-account structure. It requires insurance need, underwriting, eligible-investor status, offering and carrier approval, and strict investment protocols.
Contract design
Evaluate MEC or non-MEC funding intentionally.
Eligibility
Confirm AI and QP requirements as applicable.
Investment structure
Use approved IDFs or SMAs and managers.
Ongoing controls
Monitor diversification and investor control.
- PRIVATE CLIENT
Can insurance improve the location, transfer or governance of long-term capital?
For eligible clients, we coordinate feasibility across insurance, trust, investment, tax and securities professionals before a private solution is considered.
PPLI / PPVA
Assess eligibility, purpose and platform fit.
Investment architecture
Respect diversification and investor-control rules.
Funding design
Model premiums, liquidity and long-term sustainability.
Governance
Define roles, reporting and review protocols.
- The WSG case method
Design before illustration. Diligence before implementation.
Complex cases become clearer when every participant works from the same objective, assumptions and decision record.
PURPOSE
Defined objective
Insurance, estate, business or asset-location purpose documented without relying on a tax or performance promise.
CAPACITY
Financial resilience
Liquidity, premiums, collateral, time horizon and downside capacity tested under conservative assumptions.
ELIGIBILITY
Investor status
Accredited-investor and qualified-purchaser status independently verified where required.
LICENSING
Proper parties
Insurance, securities, investment, lending and advisory roles assigned only to appropriately licensed parties.
PROFESSIONAL REVIEW
Legal and Tax Analysis
Ownership, tax treatment, offering materials, trusts and cross-border issues reviewed by qualified counsel and advisors.
PLATFORM
Carrier diligence
Underwriting, insurer, lender, separate account, fund, manager, fees, custody, reporting and service model reviewed.
WSG does not determine final eligibility or suitability, approve securities activity, provide investment advice, or represent that any strategy qualifies for a particular legal or tax treatment.
- Premium-financing stress test
The loan must survive more than the illustration.
A credible case models the lender’s rights and the client’s obligations independently from projected policy values.
01
Interest-rate path
Test renewal rates, spreads, payment choices and sustained higher borrowing costs.
Debt cost
02
Collateral exposure
Model initial collateral, annual calls, eligible assets, haircuts and forced-liquidity risk.
Liquidity
03
Policy performance
Separate guarantees from non-guaranteed assumptions and test underperformance or additional premiums.
Insurance
04
Credit renewal
Evaluate term, covenants, recourse, refinancing and the consequences of nonrenewal.
Lender
05
Exit funding
Identify realistic repayment sources without assuming a death benefit, rising asset value or favorable refinancing.
Exit
- PPLI / PPVA collaboration
The contract surrounds the investment architecture.
Private-placement variable products are insurance contracts and unregistered securities. The carrier, separate account, offering documents, investment options, manager and policyholder roles must remain properly defined.
The policyholder may select among carrier-approved investment options but must not exercise impermissible control over underlying assets or managers. Section 817(h) diversification and investor-control requirements require ongoing specialist oversight.
01
Client, entity or trust
Ownership and funding selected only after legal, tax and planning review.
02
Insurance carrier
Issues the contract, completes underwriting where applicable and maintains contractual obligations.
03
Separate account
Holds assets supporting variable-contract values, subject to contract and regulatory requirements.
04
IDF or approved SMA
Carrier-approved insurance-dedicated investment structure with defined access and diversification requirements.
05
Independent manager
Exercises investment discretion under the permitted mandate and communication protocol.
06
Ongoing oversight
Carrier, tax, securities, investment and insurance professionals monitor their respective requirements.
- Communication discipline
No advanced case should depend on a shortcut claim.
WSG uses conditional, documented language because outcomes depend on contract terms, tax law, investment performance, financing, underwriting and client behavior.
The right message: “Here is the objective, the structure being evaluated, the assumptions, the material risks, the required approvals and the conditions under which the strategy may or may not work.”
- “Guaranteed arbitrage” or “the policy will always outperform the loan.”
- “No out-of-pocket cost” or “the lender carries all the risk.”
- “Tax-free investment account” without contract, control and distribution qualifications.
- “You control the underlying investments” in a private variable contract.
- “Accredited means suitable” or “qualified purchaser means approved.”
- Any statement that WSG, a carrier, lender or advisor guarantees tax treatment or investment results.
- Defined professional roles
Collaboration works when no one practices outside their lane.
WSG coordinates the insurance workstream and case process. Every other conclusion stays with the appropriately qualified party.
WSG / insurance
Discovery, insurance need, underwriting strategy, carrier coordination, illustration analysis and policy stewardship within licensing.
Securities professional
Private-placement presentation, offering process, disclosures, suitability or best-interest obligations and transaction supervision.
Investment professional
Investment-policy design, manager or fund diligence and advice within the applicable registration and engagement.
Tax counsel / CPA
Contract qualification, MEC analysis, ownership, reporting, distributions, financing and jurisdiction-specific tax conclusions.
Estate counsel / trustee
Trust terms, ownership, fiduciary powers, gifts, loans, governance and administration.
Lender
Credit approval, collateral, covenants, pricing, renewal, recourse and loan administration.
- Request a preliminary screen
Is there a planning case worth diligencing?
Provide high-level context only. Do not submit account statements, tax returns, medical records or other sensitive documents through this prototype.
A request does not establish eligibility, suitability, product availability, an advisory relationship or authorization to present or transact in any insurance or security.
- Advanced-markets questions
The first answer is often “more diligence.”
No. It replaces some immediate premium funding with a loan obligation. Interest, collateral, renewal, policy performance and repayment remain material risks, and the borrower needs independent capacity to support an adverse outcome.
No. These are private-placement variable contracts and unregistered securities. Applicable accredited-investor, qualified-purchaser, carrier, product, jurisdiction, suitability and licensing requirements must be independently confirmed before presentation or purchase.
No. Eligibility addresses whether a person may access a private offering. Suitability or best-interest analysis considers objectives, risks, liquidity, time horizon, fees, tax context, alternatives and the full financial circumstances.
The policyholder may choose among carrier-approved investment options, but impermissible control over underlying assets or managers can create serious tax consequences. Investor-control and Section 817(h) diversification protocols require specialist review and ongoing compliance.
No. Tax treatment depends on the contract type, qualification, MEC status, ownership, funding, distributions, loans, lapse, surrender, investor control, diversification and other facts. Tax counsel must review the specific structure and ongoing administration.
It means the responsible insurance and securities firms, properly licensed professionals, carrier or platform, and relevant legal and tax reviewers have approved the communication and their respective participation. WSG does not treat preliminary interest as approval.