Tier One Interview: Nikki Pethtel

This month, our CEO, Jay Judas, sits down with Nikki Pethtel, President and CFO of Investors Preferred Life Insurance Company. They talk about Nikki’s unexpected path from small-town Illinois to the helm of one of the fastest-growing PPLI carriers in the country, how separately managed accounts have helped drive adoption, and why education is at the heart of IPL’s success. Plus, you’ll learn why South Dakota is a power player in life insurance…and where to find a Mediterranean pasta dish that might just ruin you for all others. Let’s jump in.

JAY:  It isn’t often I get to visit with the leader of a life insurance company, Nikki, especially one who has led their company to such growth during their tenure.  Let’s get started by hearing about Investors Preferred Life Insurance Company – which I know I can shorten to Investors Preferred – and some insights on how you carry out your responsibilities as President.

NIKKI: I joined Investors Preferred Life nearly nine years ago as Chief Financial Officer, and three years ago, I was honored to take on the role of President. At the time I joined, IPL was still in its infancy, and I’ve had the unique opportunity to help shape the company from the ground up.

As a Private Placement Variable Life and Annuity insurance carrier, IPL is solely focused on this specialized segment of the life insurance industry. That singular focus allows us to bring exceptional clarity, service, and innovation to our clients and partners.

Throughout my time at IPL, I’ve remained deeply involved in virtually every major decision that has driven our growth and evolution. I’ve prioritized building a high-performing team, putting the right people in the right seats, and leveraging technology to create operational efficiencies, improve client experience, and scale our capabilities.

While I’m proud of how far we’ve come, we still have a lot of work to do. I remain energized by the challenges ahead and committed to building on our momentum to take IPL to the next level.

JAY:  In many of these Tier One interviews, I have heard all sorts of stories about the indirect route our interviewees have taken to get where they are today in the life insurance industry.  I suspect you did not imagine you would be where you are today when you were growing up in Southern Illinois. Is that the case? 

NIKKI: I never imagined I’d end up in the insurance industry, let alone serving as President of a life insurance company. I grew up in Robinson, Illinois, a small rural town in the southeast part of the state. I had a wonderful childhood in the country with my parents and two brothers, but I couldn’t wait to move to a more metropolitan area and explore life beyond our hometown.

For most of high school, I thought I wanted to be a nurse. In our community, nursing and teaching were the most common career paths for women. I completed one year of nursing school before realizing it wasn’t the right fit.

I returned home and enrolled at our local community college, where I was lucky to have a remarkable accounting professor who saw potential in me and encouraged me to pursue a degree in accounting.

My 25-year career in insurance began with my first job out of college as a staff accountant at a small, family-owned property and casualty insurance company in St. Louis, Missouri. I didn’t know much about insurance at the time, but I was fascinated by the deep tenure of the employees.  Many had been in the insurance industry for 15 years or more.

It didn’t take long to realize that I’d found the right industry. Insurance offered complexity, as well as career stability.  Most people do not realize that there are over 5,000 domestic insurance companies in the US alone.

Nikki and Alan Jahde at Alan's retirement party

When I met Alan Jahde, co-founder of IPL, in 2016, I realized that while I knew a great deal about life insurance, PPLI was an entirely different ball game. I was immediately intrigued by the complexity of the product and drawn to the company itself - a de novo, privately owned life insurance carrier that had only been in business for two years at the time.

I was fortunate that Alan invited me to join the team and stood beside me as we figured it out together. In those early days, we didn’t have many team members, just a small group navigating a complex product, but that made the experience all the more rewarding. Today, we’ve grown significantly, but I’ll never forget those first steps.

JAY:   Over the past year at industry-related events, I have been giving a presentation about the increase in popularity of private placement life insurance. You know first-hand this is true. Why is PPLI experiencing such an uptick in adoption?

NIKKI: The education and marketing has been the key to a wider adoption of PPLI. IPL has set ourselves apart in the industry by providing education to brokers, Registered Investment Advisors, single and multi-family offices and even clients who are interested in this product.  We’ve held several in-person seminars around the US where our goal is to teach people how to use this product in wealth preservation.

The second thing I feel that has helped PPLI gain popularity is the increased use of separately managed accounts.  This was a concept that Alan Jahde, co-founder of IPL was very passionate about in the beginning.  Very few carriers were using or promoting this concept.  The implementation of the SMA has given advisors a lot of flexibility with this product. 

By using a SMA, a client’s independent investment manager can manage the assets under the client’s PPLI or PPVA contract as well as the client’s taxable account.  Since that investment manager knows the client’s goals and investment preferences, the manager can better position a policy in the client’s portfolio.  For instance, the manager would likely purchase tax efficient assets in a taxable account and buy tax-inefficient investments under a policy.

JAY:  Let me focus on the marketing piece and give my opinion.  I feel strongly that some of Investors Preferred’s growth is derived from your marketing.  You are making PPLI feel accessible to the client segment that should be considering it.  What led to Investors Preferred to embracing such a proactive marketing approach?  This just was not done by other carriers in the space…and I still don’t think it is….which makes no sense following your success from it.

NIKKI: In my opinion, the slow adoption of marketing for these products comes down to two main factors. First, the life insurance industry, despite its long history, is not known for innovation. There’s a prevailing mindset of “the way we’ve always done it works fine.” Second, PPLI is a complex product. It’s not easily understood, and creating materials that explain it clearly is a real challenge.

At IPL, we’ve taken the view that education and transparency are critical when it comes to PPLI. Our focus on using platforms like LinkedIn isn’t about selling the product, it’s about helping people understand it. We aim to break down complex concepts, highlight the benefits, and provide clarity in a space that’s often misunderstood.

By consistently sharing facts, insights, and thought leadership, we’ve been able to build credibility and foster informed conversations. It’s not about the hard sell, it’s about equipping advisors, clients, and industry peers with the knowledge they need to make confident decisions.

This educational approach has been a core part of our strategy, and it's helped distinguish IPL as not just a provider, but a trusted resource in the PPLI market.

JAY:  Investors Preferred is domiciled in South Dakota, though you have business offices with employees in both Sioux Falls and Gilbert, Arizona. Why South Dakota?  Is there something special about the jurisdiction that helps your distribution of PPLI and PPVA?

NIKKI: One of the key advantages is South Dakota’s low premium tax rate. By law, premium tax must be paid to the state where the policy is domiciled. South Dakota’s significantly lower rate helps reduce the overall cost of the policy, offering a meaningful benefit to high-net-worth individuals funding large policies – policies that may be in place for many decades.

In addition, South Dakota is widely recognized for its favorable trust and LLC statutes, which streamline the process of structuring and maintaining a PPLI policy. These legal advantages make it easier for advisors and clients to set up policies within robust estate and asset protection frameworks.

JAY:  I recently interviewed Chris Burch and Tammy Marlotte, two incredible senior underwriters.   When we spoke, you mentioned that underwriting has been career path for women to achieve senior roles in the life insurance industry.  This has not been the case for accounting and finance roles, until recently.  Do you have some thoughts on how more women can become Presidents and CEOs of life insurance companies or producer groups?

NIKKI: This is a critically important question for the continued success of women in the insurance industry. In my view, the first step is education and intentional, industry-wide initiatives. I would guess that most women who find themselves in this field got here the same way I did, by accident. The insurance industry doesn’t always do a great job of positioning itself as a dynamic career option, especially for women in college or early in their careers. That needs to change.

Beyond that, life insurance companies must do more to rotate women in technical roles, like accounting, compliance, and actuarial, into external-facing and strategic areas such as operations, product development, and distribution. That kind of exposure is what ultimately led me to my role as President. I had the opportunity to learn all areas of the business and understand how the pieces fit together. You cannot lead at a high level if you're stuck behind an accounting desk your whole career.

Lastly, visibility and sponsorship from senior leadership are essential. Women need real exposure to the C-suite and even the board of directors. That kind of access, combined with active advocacy from senior leaders, can open doors and build the confidence and credibility needed to move into the highest levels of leadership.

JAY:  Outside of running a life insurance company, I know you and your husband, Patrick, enjoy all sorts of activities.  Before you share those, I want our readers to know that Patrick is Pete’s and my favorite life insurance spouse.  He is so much fun to be around!  As much as we enjoy seeing you, the question we always ask is, “Will Patrick be there?”  We may need to release a Tier One Spouse Interview special edition and interview Patrick.  

NIKKI: Patrick was pleased to hear that he now holds the title of favorite life insurance spouse. Thanks to you guys he will now attend events with me when he knows you and Pete will be there and I quote “They actual make life insurance fun, I didn’t know that was possible”.

I have a wide range of interests outside of work that I'm passionate about. One of the things I really enjoy is spending quality time with Patrick. We’ve been married almost 30 years. We love to explore new places and cultures, which has led us to discover some amazing restaurants and cuisines.  We are also huge tennis fans and love to travel to different cities to watch tennis.

In addition to our culinary adventures, I'm also a dedicated cat lover. We have two Sphynx cats at home who are incredibly spoiled, and they bring so much joy to our lives.

JAY:  Thanks for spending this time, Nikki.  We have reached the restaurant question and I know you have prepared extensively for it.  Without naming a steakhouse or a steak dish, share your recommendations on where I should eat and what I should order when I’m there.

NIKKI: Thank you Jay! As you know Patrick and I are huge foodies so I can’t just name one so hopefully you are okay with two.

Nikki, Patrick and Chef Beau

Kai Restaurant located in Phoenix  in the Wild Horse Pass area.  KAI celebrates Native American cuisine, offering locally sourced ingredients and telling the story of the native American people of the Phoenix area.  They are currently offering a tasting menu so you can experience it all including Pee-Posh Garden and Squab.

A new favorite of ours is Cala a Mediterranean restaurant in Scottsdale co-owned by Chef Beau McMillian. Everything there is amazing but I love the Riggatoni Wagyu Bolognese. 

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Since its inception, Life Insurance Strategies Group has solely focused on the individual high net worth life insurance market. We do not sell products. This allows us to offer unbiased, pragmatic advice. Visit us at www.lifeinsurancestrategiesgroup.com.