This is informational only and not an offer to sell any life insurance or annuity product.
Weisz & Santagata LLP expanded the range of services it offers to clients by forming Portola Life Insurance Company, I.I. in 2016, offering private placement life insurance policies and variable annuities to high net worth individuals.
Customized Investment Options
Individualized Policy Design
Long Term Investment Horizon
Jim is a Director and a Principal. He is a partner at Weisz & Santagata LLP with more than 30 years experience in providing insurance and risk management services for high net worth individuals. Jim has operated numerous businesses. He is a licensed attorney in California and Arizona (inactive) and a Certified Public Accountant (inactive).
Scott is a Director and a Principal. He is a partner at Weisz & Santagata LLP and has more than 25 years experience as legal counsel to entrepreneurs, investors and companies. Since 2016, Scott has worked with Jim in the operation of Portola Insurance Company, I.I. He is a licensed attorney in California.
Fiona is a Director and President. She has more than 25 years experience in international insurance and finance operations, and possesses extensive knowledge of private placement variable life, annuity and captive management programs. She is a member of numerous professional insurance and fiduciary organizations.
Portola Life Insurance Company, I.I. ("Portola") is regulated by the insurance law of Puerto Rico. Puerto Rican insurance law requires that all policyholder funds be held in Segregated Assets Plans. The assets in a Segregated Assets Plan are legally committed to satisfy the cash value obligation that Portola has to each specific policyholder. Each policyholder's Segregated Assets Plan protects those assets from claims of other policyholders and general creditors of Portola. To maximize investment flexibility, Portola formed Portola Assets II LLC, a Delaware series limited liability company, to enhance segregation of assets, facilitate a clear and seamless audit trail for funds movements and valuation reporting, and provide a scalable infrastructure for investing and account management that is symmetrical with the related Segregated Assets Plan. Only Portola and its Segregated Assets Plans may invest in Portola Assets II LLC and its series.
Jim Weisz and Scott Santagata formed Portola Life Insurance Company in 2016 in order to accommodate the needs of existing clients who desired private placement life insurance policies issued by a reliable carrier exclusively under our control.
Portola is not rated by any agency. Instead, it is regulated by the Department of Insurance of Puerto Rico and secures its cash value obligations with assets held in segregated accounts that exceed such obligations. Any additional death benefit is reinsured to an AM Best A+ rated carrier pursuant to an evergreen reinsurance treaty.
No. Prospective insureds are considered by referral only.
Variable Annuity. Steve has been investing in high yield debt instruments for years. His portfolio is $8 million and his average annual yield is 8%. Steve, a California resident, earns interest on the portfolio, pays his state and federal tax, and lives on the net amount of approximately $365,000 per year. Steve decides to purchase a variable annuity from Portola, and Portola can invest the segregated account in a similar asset class, yielding 8% per year. Steve selects an annuity with an immediate payout of $440,000 per year for 30 years, which results in approximately the same net after tax amount of $365,000. The difference is that at the end of 30 years Steve’s account is expected to be worth more than $17 million. At that point, it can either be cashed out or paid to a beneficiary, such as Steve’s children, for their lifetimes. In either case, the amount left is substantially more than Steve would have had without purchasing the variable annuity.
Life Insurance. Another option is for Steve to purchase a $14 million life insurance policy for annual premiums paid over several years, which results in approximately $4 million of total premiums. Portola can invest those premiums in a similar asset class in which Steve was previously investing. After Steve completes paying the premiums, the projected account value in the life insurance policy can be expected to be over $5 million ($1 million more than Steve would have had). In 15 years, the account value is expected to be more than $8 million. At any time, Steve can borrow from his life insurance policy for additional living expenses, health care, or for any other reason. When Steve passes away, the greater of the account value or the $14 million death benefit, net of policy loans, is paid income tax free to his beneficiaries.
Modified Endowment Contract. Bob has different circumstances from Steve. Recently retired and in good health, Bob has enough income and savings to live comfortably but wants to pass a portion of his assets to his children as efficiently as possible. Bob pays a single premium of about $5 million for a paid up life insurance policy, known as a modified endowment contract. Portola invests the premiums in a portfolio expected to generate 8% per year in asset classes with which Bob is comfortable. The earnings are tax free. Therefore, taking into account fees and costs of insurance, the projected account value (i.e. death benefit) is more than $15 million after 15 years. Upon Bob’s death, the death benefit is paid income tax free to Bob’s designated beneficiaries.
Licensed and qualified professionals may contact Jim Weisz or Scott Santagata at (949) 243-7360.
Portola Life Insurance Company, I.I.
802 Fernandez Juncos Avenue, San Juan, Puerto Rico 00907