Tax deferral: Investment growth within a PPLI policy is generally not taxed annually—income and capital gains are deferred until a distribution is made.

Tax-free death benefit: The death benefit is paid to the trust beneficiaries free of income tax.

Reduced estate taxes: If the trust is irrevocable, the policy proceeds are kept outside the estate, mitigating estate tax exposure in many jurisdictions.

Creditor shield: PPLI policies are often protected from claims of creditors, depending on the jurisdiction. When combined with an offshore or domestic asset protection trust, this protection is enhanced.

Segregated assets: The assets within the policy are legally separate from both the insurer’s balance sheet and the policyholder's direct estate.

Open architecture: Unlike retail insurance products, PPLI allows you to hold a wide range of alternative and illiquid investments (e.g., hedge funds, private equity, VC, real estate funds), subject to regulatory and diversification guidelines.

Policyholder-directed strategies: Through a dedicated investment account, a trust can engage advisors to tailor the investment approach while staying compliant with insurance rules.

Trust-controlled distribution: The trust can specify exactly how and when proceeds are distributed to beneficiaries, avoiding family disputes or mismanagement.

Probate: As the trust owns the policy, assets pass privately and directly to heirs without going through public probate proceedings.

Multigenerational planning: Trusts can be used to implement generation-skipping transfer planning or to manage funds for minors and vulnerable beneficiaries.

Mobility planning: For internationally mobile families, combining PPLI with a trust allows wealth to move tax-efficiently across borders.

CRS/FATCA alignment: Properly structured, it is often fully compliant with reporting frameworks yet can protect privacy within legal bounds.