The Senate is targeting life-insurance policies that allow the rich to pass down everything from stocks to yachts to their kids tax-free. Here's how it works.

"In the US, people sell life insurance as a middle-class way of structuring assets. But PPLI is a completely different animal." - Michael Malloy, wealth advisor.

"The PPLI industry enables a few thousand ultra-rich American taxpayers to shelter at least $40 billion... the average PPLI policyholder is worth well over $100 million."

"Life insurance is an essential source of financial security for tens of millions of middle-class families in America, so we cannot have a bunch of ultra-rich tax dodgers abusing its special tax treatment..." - Ron Wyden.

"While tax savings are the primary draw of PPLI for US clients, those in the Middle East or Latin America are often looking to use trusts to conceal information about specific assets from corrupt governments." - Michael Malloy.

Read at Business Insider