Private life insurance, built around the portfolio you already own
Your investments sit inside a private life insurance policy, in a separately managed account run by MyTimeEquity. The same portfolio you would own anyway, held where it grows without a tax bill every year.
- No tax bill each year as it grows
- Borrow from it tax-free, at a low loan rate
- Passes to your family free of income tax
- Your portfolio stays managed by MyTimeEquity
For qualified purchasers. Loans are tax-free in a policy that stays in force and is not a modified endowment contract. MyTimeEquity, LLC is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC File No. 801-136955).
How it works
Same strategy, better wrapper. The policy sits around your portfolio. It does not change how your money is invested.
- 1
We design the policy around you
Your age, health, funding plan and estate goals shape it. You see a full illustration before you decide anything.
- 2
You fund it over three years
At least $1.5 million in total, paid into the policy over three years.
- 3
MyTimeEquity manages it
Your portfolio runs as a separately managed account inside the policy, with no tax bill as it grows.
- 4
You and your family use it
Borrow against the cash value tax-free during your life. At death, the benefit passes to your beneficiaries free of income tax.
Three questions worth asking
Why are you paying federal and state tax on your passive investments every year?
In a brokerage account, interest, dividends and realized gains are taxed as they happen. Inside the policy, they are not taxed while they stay invested.
Why pay life insurance commissions and high mortality costs?
A private policy has no up-front commission and no surrender charges. A joint policy with survivor pricing can bring the cost of insurance down.
Why settle for an off the shelf policy?
We build a policy of your own around your age, health, funding plan and estate, with a death benefit sized to your net worth, subject to underwriting.
What changes each year
In a regular brokerage account, interest, dividends and realized gains are taxed in the year they happen, so part of each year's growth leaves the portfolio. Inside the policy, that same slice stays invested.
A diagram of when tax is paid, not a projection. It does not show returns, tax rates or the policy's own costs. Tax can apply if the policy is surrendered or lapses.
Regular brokerage account
Inside the policy
- Paid in tax the year it is earned
- Kept after tax
- The same slice, still invested
- Stays invested, no tax that year
The portfolio you would own anyway, growing without a yearly tax bill, there for you through tax-free loans, and passing to your family free of income tax.
Why families choose it
No tax bill each year on growth
Interest, dividends and realized gains inside the policy are not taxed as they happen, so the whole portfolio keeps compounding.
A death benefit free of income tax
Paid to your beneficiaries free of income tax. It includes the insurance amount on top of the account value.
Tax-free access during your lifetime
Borrow against the cash value through policy loans at 4%, or the lower market rate when you borrow. Loans are tax-free in a policy that stays in force and is not a modified endowment contract.
Your advisor stays your advisor
MyTimeEquity manages the account inside the policy, the same way we manage your accounts today.
One life, two, or the whole family
Cover yourself, you and your spouse, or include your children. Survivor pricing, which pays at the second death, can bring the cost of insurance down.
Works with your estate plan
Fits with trusts for children and grandchildren, including an irrevocable life insurance trust (ILIT).
A private policy, compared with an off the shelf one
Simple and transparent, with the costs set out before you fund anything.
| Typical retail policy | Private policy with MyTimeEquity | |
|---|---|---|
| Up-front commission | Typical retail policyOften built into what you pay | With MyTimeEquityNone. A modest set-up fee |
| Surrender charges | Typical retail policyCommon in the early years | With MyTimeEquityNone |
| State premium tax | Typical retail policyUsually passed on to you | With MyTimeEquityNone |
| Charges | Typical retail policyCurrent charges can rise toward a higher maximum | With MyTimeEquityGuaranteed, with no gap between current and maximum |
| Revenue sharing | Typical retail policyCan be built into the fund menu | With MyTimeEquityNone |
| Investments | Typical retail policyA menu of insurance company funds | With MyTimeEquityYour own portfolio, managed by MyTimeEquityStocks, ETFs, bonds, structured notes, hedge funds, private equity, private credit, venture capital and pre-IPO companies |
| Design | Typical retail policyOff the shelf | With MyTimeEquityBuilt around your age, health, funding plan and estate |
The strength behind your policy
Two separate protections: one for your investments, and one for the death benefit.
Your investments are held apart
The account inside your policy is legally segregated and held at Charles Schwab, separate from every other policy the insurer writes.
The death benefit is reinsured
Each policy is backed by one to three of the world's largest reinsurers. The insurer keeps only a small, fixed amount of risk on each life.
Paid on proof of death
Under each reinsurance contract, the reinsurer pays the insurer the death benefit on proof of death.
Underwriting run by a global reinsurer
A major life reinsurer coordinates your medical underwriting, so your case is assessed by the firms that carry the risk.
Who stands behind your death benefit
The insurer pays your family, and the reinsurers pay the insurer back for their share.
Where your investments sit
Held at Charles Schwab
Other policiesKept legally separateYour account is ring-fenced for your policy alone.
Not to scale. The insurer and reinsurers for your policy are named in your offering documents.
Who it is for
Qualified purchasers
The policy is available only to qualified purchasers, a test set by federal securities law. You generally qualify as:
- An individual with at least $5 million in investments, alone or together with a spouse
- A family-owned business with at least $5 million in investments
- A trust whose trustee, and each person who put assets into it, qualifies
- An organization that owns and invests at least $25 million
Investments include stocks, bonds, funds, investment real estate and cash held for investment. Your home and property used in your business do not count. We confirm this with you before anything is offered.
$1.5 million
or more funded into the policy, over three years.
Subject to medical and financial underwriting. Not available to people who live only in New York.
It tends to fit
- High earners in top tax brackets who feel the annual tax on their portfolio
- Business owners and professionals planning for the long term
- Families building a legacy through trusts for children and grandchildren
- Estate plans that use an ILIT, where the policy can sit inside the trust from day one
From first conversation to a funded policy
A clean, responsive case often completes in about three months.
- 1
A conversation
Your goals, your tax picture, and whether this fits. We bring in your CPA and estate attorney.
- 2
Authorization
You sign a HIPAA authorization and share basic information.
- 3
Health review
A short phone interview, a review of medical records, and a paramedical visit.
- 4
Underwriting and issue
The insurer underwrites the case and issues the policy, and you fund it.
- 5
Investing begins
Your account opens inside the policy, and MyTimeEquity manages it from there.
Good to know before you start
This is a long-term structure, and it is not right for everyone. We walk through each point with you, your CPA and your estate attorney before you commit anything.
It is built for the long term
If you surrender the policy, the gain above what you paid in is taxed as ordinary income.
Loans need managing
If the policy lapses with a loan outstanding, tax can be due on the gain. We watch loans so the policy stays in force.
Funding follows IRS limits
Paying in too much, too fast can turn the policy into a modified endowment contract, where loans are taxed. Your schedule is designed to stay within the limits.
You choose the strategy, not the holdings
IRS rules require that the investments are managed for you and stay diversified.
Values move with markets
The cash value rises and falls with the investments inside the policy.
Rules can change
Tax law can change, and guarantees depend on the claims-paying ability of the insurer.
The policy has costs of its own: insurance charges, administration, and MyTimeEquity's advisory fee for managing the account. Your illustration shows every charge before you decide.
Your advisor stays your advisor
Inside the policy, your portfolio is managed by MyTimeEquity, the same way we manage your accounts today. We coordinate the insurance side with licensed specialists who handle underwriting and placement, so you have one team to call.
Sudhir Pai, CPA, FCA, CBDP
Founder & Managing Principal, MyTimeEquity
Questions families ask
Is the growth tax-free?
Kept for life, it works out that way. Nothing inside the policy is taxed while it stays invested, you borrow from it tax-free, and the death benefit passes to your beneficiaries free of income tax. The exception is cashing out: if you surrender the policy, the gain above what you paid in is taxed as ordinary income. That is why money comes out as loans, not withdrawals.
How do I get money out during my life?
Through policy loans against the cash value, at 4% or the lower market rate when you borrow. In a policy that is not a modified endowment contract and stays in force, loans are tax-free. Loans reduce the cash value and the death benefit, so we manage them to keep the policy in force.
What does it cost?
A modest set-up fee and no up-front commission. After that, the policy's insurance charges, an annual administration fee, and MyTimeEquity's advisory fee for managing the account. Your illustration shows each one before you decide anything.
Who issues the policy?
A licensed life insurance company, with each policy reinsured by one to three of the world's largest reinsurers. You receive their names, the offering documents and the full policy terms before you commit anything.
What is a qualified purchaser?
A test set by federal securities law. Generally, an individual with at least $5 million in investments, alone or with a spouse, or a family-owned business with the same. Your home and business property do not count. We confirm it with you before anything is offered.
Can I choose the investments?
You choose the strategy with your advisor. IRS rules require that individual investment decisions are made by the manager, not the policy owner, and that the account stays diversified.
Can one policy cover my family?
Yes. A policy can cover you and your spouse, and can include your children. Survivor pricing, which pays at the second death, can bring the cost of insurance down.
How does it fit with my trust?
The policy can be owned by a trust, including an irrevocable life insurance trust (ILIT), from day one. We plan this with your estate attorney.
What if my health is not perfect?
Every case is underwritten individually, and the result can affect the cost or whether a policy is offered. We find out early, before you commit anything.
Private placement life insurance is offered only through a private placement memorandum to investors who are both accredited investors and qualified purchasers, and is subject to medical and financial underwriting. This page is educational. It is not an offer to sell, or a solicitation of an offer to buy, any security or insurance policy. Policies are issued by a licensed insurance company and placed through licensed insurance professionals. MyTimeEquity, LLC does not issue insurance.
Tax treatment depends on the policy qualifying as life insurance under federal tax law and on how it is funded and used. Growth inside the policy is tax-deferred. Policy loans and withdrawals reduce the cash value and the death benefit. If a policy is surrendered or lapses, or is a modified endowment contract, loans and withdrawals may be taxable, and a 10 percent additional tax may apply before age 59½. Guarantees depend on the claims-paying ability of the issuing insurer. Tax laws can change. Consult your own tax and legal advisors about your situation.