Advantage’s policy is a flexible premium variable life insurance policy designed for people of a high net worth who wish to provide regulated, compliant protection for their families but who understand risk/return strategies. Advantage’s unique policy structure allows policyholders to not only safeguard their wealth but enhance it through investments made within the Segregated Portfolio that would not be available to policyholders of US life companies. The Advantage policy, through Insurance Dedicated Funds offers its policyholders not only access to institutions and financial products available in the global marketplace but also initial public offerings and even the shares of privately held companies. Such investments are usually not offered by US life insurance companies.

Advantage is able to do this because of the highly sophisticated Segregated Portfolio legislation passed by Cayman Islands and the fact that Cayman Islands allows Advantage to meet its obligations to pay the death benefit partially “in kind” by distributing assets of the Segregated Portfolio to the beneficiaries of the policy. By allowing the death benefit to be paid both in cash and by the transfer of ownership of Segregated Portfolio assets, Advantage can invest in financial instruments that major domestic companies would reject due to their lack of liquidity.

Advantage’s policy is designed to be compliant with the Section 7702 and 7702A tests of the Internal Revenue Code. In addition the policy is administered to meet the rules delineated in US IRC 817 and IRS Revenue Rulings regarding investor control. Advantage’s policy may only be sold within Cayman Islands.

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