Senate Chair Vows Wealthy Tax-Free Insurance Scheme Crackdown

A top Senate Democrat wants to make it harder for ultra-wealthy investors using niche life insurance policies with payouts totaling at least $40 billion to escape IRS scrutiny, a report released Wednesday said.

The report from the Senate Finance Committee alleged that firms like Prudential Insurance Co., Lombard International, and Zurich Insurance Group marketed private placement life insurance as a way for the wealthy to invest their money with generally no tax bill. Finance Committee Chair Ron Wyden D-Ore. is planning to soon release legislation aimed at cracking down on PPLI abuse by wealthy investors, which the IRS is ...