Investors Preferred Life life insurance

Overview

Investors Preferred Life Insurance Company (IPL) is a small, privately held life insurer domiciled in South Dakota that does one thing: private placement life insurance (PPLI) and private placement variable annuities (PPVA). These are custom-built variable policies and annuities for very wealthy families, family offices, trusts and institutions. You cannot buy an ordinary term or whole life policy from IPL, and its products are open only to people who meet the federal definitions of an accredited investor and a qualified purchaser.

The company's NAIC group, listed as "Insco Trust group," has only one member: IPL itself. The group ranked #51 among U.S. life insurance groups by 2024 individual life direct premiums written, according to NAIC market share data, with $660.3 million and a 0.42% share. That figure looks large for a company whose website lists a team of about 15 people, but private placement policies are typically funded with very large premium deposits that go into investment accounts inside the policy, not with small monthly payments. South Dakota's 2024 market share report shows all $660.3 million of IPL's direct premiums recorded in South Dakota, which made it the largest life writer in that state by premiums, with 25.5% of the state's life market.

IPL's home office is in Sioux Falls, and its administrative office is in Gilbert, Arizona. It sells through advisors rather than to the public, and it relies on a group of reinsurers to carry most of the death-benefit risk on its policies.

History

Alan Jahde, a specialist in estate planning and onshore and offshore private placement insurance, founded Investors Preferred in 2013 together with what the company describes as a multi-generational family. That family's office, SunGate Capital, is today the company's primary owner. The holding company is IPL Holdings LLC.

The company grew quickly from a small base. It says S&P Global Market Intelligence ranked it among the fastest-growing U.S. life insurers for 2017, 2019, 2020 and 2021, and that it crossed $1 billion of assets under administration around its 10th anniversary in 2023, reaching $1.5 billion at the end of that year.

Leadership has turned over several times. Jahde served as founder and CEO and is now chairman. Tommy Mayes was president until September 2023, when Nikki Pethtel, who had joined as chief financial officer in 2016, became president. In April 2026 the company named Kevin Millslagle president. Millslagle had been managing director of operations and investments at SunGate Capital and SunGate's representative on IPL's board for nearly four years; he has said SunGate's estate is one of IPL's largest policyholders. In announcing him, IPL acknowledged two senior leadership departures within about 60 days and said its team, underwriting and service operations were unchanged.

Life insurance products

IPL's core product is private placement life insurance. A PPLI policy is a variable universal life contract negotiated for each client: premiums go into a separate account invested in insurance-dedicated funds or separately managed accounts, often holding alternative investments, and the policy must meet the federal tax definition of life insurance under Section 7702. When it does, investment growth inside the policy is not taxed each year and the death benefit is generally income-tax-free. IPL's own materials stress the main legal limit, the investor control doctrine: the policyowner cannot direct the specific investments in the separate account, or the IRS can tax the gains currently.

IPL publishes the kinds of charges a PPLI policyholder pays, as ranges rather than prices:

• a cost of insurance charge for the death benefit;
• a premium-based setup fee of roughly 40 to 150 basis points on each contribution;
• an asset-based mortality and expense charge of roughly 40 to 150 basis points a year;
• a deferred acquisition charge of about 70 to 100 basis points;
• investment management fees charged inside the funds;
• South Dakota premium tax of 2.5% on the first $100,000 of premium each year and 0.08% on premium above that.

In 2025 IPL added Private Mortality Coverage (PMC), which backs the policy's death benefit with privately arranged mortality coverage rather than the conventional reinsurance market. IPL says PMC is aimed at clients with at least $5 million in liquid capital who already hold large amounts of life insurance and often uses trust ownership, such as dynasty or grantor trusts.

IPL does not sell term life, whole life, final expense or any policy for the general public.

Other products

IPL also issues private placement variable annuities. It markets them to individuals and to institutions such as charitable remainder trusts, foundations, endowments and fund sponsors as a tax-deferred way to hold alternative investments or to pass assets on.

Buying and service

Policies are designed with the client's advisory team: wealth managers, registered investment advisors, private banks, family offices, attorneys and CPAs. IPL's distribution team works with those advisors on case design, and its underwriting team arranges medical and financial underwriting with its reinsurers. Because these are securities-based insurance products sold privately, buyers should expect a long placement process and legal and tax review on both sides. Outside firms often build and administer the insurance-dedicated funds held inside private placement policies.

Existing policyholders and advisors reach the company through its main number, 605-415-4454, or by email at [email protected]. IPL does not advertise a consumer online account or mobile app.

Claims

IPL does not publish a separate claims line or claims form. Beneficiaries, trustees or advisors should contact the company's main number or email to report a death; expect to provide a certified death certificate and claimant forms. Because most PPLI policies are owned by trusts, the trustee usually files the claim. The general steps are in the claims guide.

Ratings and reputation

AM Best assigned IPL a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" with a stable outlook on July 12, 2023, and IPL's site lists the rating as current in 2024. AM Best said IPL's capitalization was at the very strong level and its surplus had doubled in four years, noted limited asset risk because the business is mostly variable products with mortality risk passed to highly rated reinsurers, and flagged regulatory risk tied to the tax benefits its high-net-worth clients rely on. IPL has no S&P, Moody's or Fitch rating.

Weiss Ratings, which uses its own formula, rates IPL an E (Very Weak) based on its late-2025 data, citing low capitalization measures; that view differs sharply from AM Best's.

IPL was not ranked in the J.D. Power 2026 U.S. Individual Life Insurance Study, which covers large consumer brands.

Who it suits

IPL is relevant only to a narrow group: wealthy investors and institutions, working with tax and estate counsel, who want an investment portfolio wrapped in a life insurance or annuity contract. For them, a small specialist with an A- rating, published fee ranges and a high-touch service model can be an alternative to larger carriers' private placement desks. For anyone looking for protection for a family, a mortgage or final expenses, it is not an option.

• Strengths: A- (Excellent) AM Best rating assigned in 2023 with very strong risk-adjusted capital; a specialist that does only private placement; publishes typical fee ranges; South Dakota domicile with a very low premium tax on large premiums.
• Weaknesses: open only to accredited investors and qualified purchasers; a small, young company with few employees and frequent leadership changes, including two senior departures in early 2026; no ratings from S&P, Moody's or Fitch, and an E rating from Weiss; the tax benefits depend on strict rules (investor control, Section 7702) that could change.

How to contact Investors Preferred Life