A Private placement deferred variable annuity is a kind of life insurance product which is particularly designed for the high net worth investors.
The life insurance policies are considered to be important vehicles for tax advantages.
The private placement deferred variable annuity policies are fully compliant with the tax rules of US.
It is, therefore, entitled fully to the privileged tax treatment which is enjoyed by the life insurance.
The deferred variable annuity offers the investors the chance to select the asset managers.
This seems to attract attention of the high net worth customers as they look around for investment which involves sophisticated strategies rather than the "long only" traditional mutual fund investment.
The Main Goals of Private Placement Deferred Variable Annuity Are:

• Maximizing investment choices
• Asset protection
• Estate tax savings
• Capital gains
• Income

Tax benefits offered on such annuities are fully compliant with the legal parameters of the US tax structure.
The investors can take advantage of the same kinds of benefits, irrespective of whether the insurance is acquired offshore or onshore.
Income on the cash value of the policy which includes capital gains, interest and dividends does not fall under the purview of tax as it gets accumulated within the policy itself.
Policy loans and withdrawals can be used for accessing the policy assets.
With offshore private placement policy, the investor can use the enhanced tax advantages as well as the other kinds of advantages.
What Generates Interest Among The Investors? The tax free investment environment is said to be the primary motivating factor among the investors.
The policy's death benefit component is taken to be the second beneficiary reason.
Who Purchases Private Placement Deferred Variable Annuities? The high net-worth investors who aim at globalizing their holdings at the same time defend them from the creditor risk, opt for this kind of policy.
As an asset preservation vehicle, it is truly indispensable.
The private placement when clubbed with the offshore trusts attains the goals of estate, income and gift.
There are a number of offshore jurisdictions which offer legislation including financial privacy, greater confidentiality and pro-debtor regime.
Benefits of Private Placement Deferred Variable Annuity:

• Augments the wealth which can be loaned or distributed from the policy
• Easy passing it over to the succeeding generation

Private placement is basically used as a tool for enhancing the rate of return of a particular investment like the mutual funds.
The hedge funds that don't offer much tax redemption are also included in this.
Maintaining these investments under the cover of private placement automatically becomes tax efficient.
The policy owners can alter their investment styles as well as the fund managers when ever they feel like.
The tax benefits included are as follows:

• Assets withdrawal from the policy.
  
• Borrowing of assets from the policy.
  
• Policy receipt proceeds by the recipients on the death of the person insured following a tax free system.
  

The flexible investment opportunities as well as the tax benefits offered by private placement deferred variable annuity have made it a very popular option amongst many.