Principal Universal Life Accumulation II SM

Transcription

1 FOR INDIVIDUALS The Principal Financial Group Principal Universal Life Accumulation II SM BB

2 Looking for coverage to provide the protection you need and the flexibility you seek? Principal Universal Life Accumulation II SM (UL Accumulation II) insurance from the Principal Financial Group is a versatile life insurance product that offers death benefit protection with cash value accumulation potential. With its flexible design, it can grow with you as your financial needs change. Why UL Accumulation II? Tax-free death benefit Life insurance proceeds generally pay to the beneficiary federal income-tax free. This allows those you wish to take care of to gain the full benefit of your thoughtful planning. In some cases, life insurance can offer a more efficient way to pass proceeds to a beneficiary than using taxable assets. Guaranteed crediting rate Unlike products whose value is directly linked to market performance, UL Accumulation II offers the stability of a fixed interest rate. A policy s cash value is credited with an interest rate 1 set by The Principal. This rate is not directly linked to market performance. Although the rate will change from time to time, it is guaranteed to never be less than the stated minimum. This product may be a good fit if you are concerned with exposure to market volatility. Cash accumulation UL Accumulation II offers long-term cash accumulation potential. The cash value earns a competitive interest rate and grows on a tax-deferred basis. Because you don t pay taxes on earnings, there is more money to earn interest on. The result is your cash value grows faster than if it were taxed. Tax-free withdrawals Life insurance can provide a source of cash to supplement retirement income or to meet other personal needs. Policy values may be accessed through loan or partial surrender. 2 Accessing cash by these means does not create a taxable event as long as the policy is not a Modified Endowment Contract. 3 Flexible premium payments You may select the frequency of your premium payments and the amount of those payments, with some limits. This allows you to increase premium payments or decrease them, depending on your situation at the time. 4

3 Flexibility to meet your needs today and tomorrow Life is filled with uncertainty. UL Accumulation II offers features to help you deal with life s uncertainties. These features present living benefit access and death benefit protection to meet your changing needs. Change of Insured Rider 5 With this rider, the policy owner may name a new insured for the policy if all conditions to do so are met. The policy face amount and policy value remain the same after the change of insured. The surrender charge period does not change. Riders attached to the original policy cease upon the change of insured. Riders for the new insured may be added with underwriting approval. Any loan balance will remain as will an existing assignment. Monthly policy charges will be based on the age and risk class of the new insured. Children s Term Insurance Rider 5 This rider provides protection for the insured s children ages 14 days to 25 years. Adding this rider can eliminate the need to carry a separate insurance policy on each child. The amount of coverage per child must be at least $5,000. The maximum coverage limit is $1,000 for each $5,000 of base plan face amount and cannot exceed $25,000 total. Life insurance can There is a charge for this rider. help meet a variety Chronic Illness Death Benefit Advance Rider 5 of financial needs. This living benefit provides flexibility in the event of a chronic illness. It allows It can provide a you to use a portion of your policy s death benefit early (an accelerated death benefit to benefit) to meet current needs, when certain conditions are met. The money you receive may be used for living expenses, to pay off debt or to simply beneficiaries in the enjoy life. There is no cost to have this rider. If you qualify, this rider will event of loss or offer be automatically added to your policy when it is issued. When you request living benefits that an accelerated benefit, the amount you receive is less than your requested can help meet your amount to reflect use of the death benefit early. Each accelerated benefit payment reduces your policy s death benefit by the amount of your benefit current financial request. The accumulated value of the policy, surrender charges and any needs. outstanding loan(s) are also proportionately reduced. An administrative fee is assessed to each accelerated benefit payment. The receipt of an accelerated benefit may be taxable. 6 Cost of Living Increase Rider 5 The insured has an opportunity to increase the amount of insurance based on increases in the Consumer Price Index. Additional underwriting is not required to get an increase. This rider allows a face amount increase of up to a $100,000 every three years to age 55 of the insured. If this rider is used, the monthly policy charge will be increased to cover the costs and charges of the larger face amount. Extended Coverage Rider 5 This rider addresses the risk of you living past the maturity date of your policy. With this rider, under most circumstances, maturity will extend to the date of death. This rider may be added at any time while the policy is in force. Additional underwriting is not required. There is no charge for this rider. Life Paid-Up Rider 5 This rider can keep a policy from lapsing, in certain situations, when there is a large outstanding policy loan (or loans). If the insured is at least 75 years of age and the policy has been in force for at least 15 years, the rider ensures the policy will not lapse even if it would otherwise do so. The coverage is

4 converted to paid-up life insurance. This rider is added to all policies. Without the rider, you would need to pay more premiums to keep the policy in force or pay tax on the income received. There is a charge for this rider when it is used. No-Lapse Guarantee This provision guarantees 7 that as long as the no-lapse guarantee premium is paid, the policy will not lapse during the first 10 policy years even if the accumulated value is less than that needed to cover policy costs. The no-lapse guarantee terminates after the first 10 policy years. After 10 years, it may be necessary to pay much higher premiums to keep the policy in force. While paying the no-lapse guarantee premium guarantees the policy will stay in force, paying long-term premiums at this level may not allow you to take full advantage of potential cash value accumulation. Note: If you choose to pay the minimum no-lapse guarantee premium, your policy will remain in force for the first 10 policy years provided no loans, partial surrenders or policy changes occur. Salary Increase Rider 5 This rider allows additional insurance to be purchased on the life of the insured without further underwriting. An increase may be made each year the insured is actively at work. Increases are based on the insured s salary, subject to the maximum for the rider. There is no charge for the base rider, which allows increases of up to $30,000 per year. Larger increases of up to $100,000 may be made for a monthly policy charge. This rider can only be used on business cases with more than one insured. Surrender Value Enhancement Rider 5 This rider may be used to provide potential high early cash value for business needs. Cash surrender value is increased in policy years one through seven. This rider can be used on employer-sponsored and employer-owned policies. It is ideal for use with business solutions like Key Person. Terminal Illness Death Benefit Advance Rider 5 If you become terminally ill, you may also take an advance from the policy s death benefit. The money may be used for living expenses, to pay off debt or to enable a final dream. This rider is available on all policies. There is no additional charge for the rider, but the benefit is considered a lien against the policy and accrues interest. At the time of claim, the beneficiary receives the death benefit minus the benefit advance and accrued interest. The receipt of an accelerated benefit may be taxable. 6 Claims are subject to an administrative fee. Waiver of Monthly Policy Charge Rider 5 This rider covers against the risk the insured becomes disabled and is unable to pay premiums. If the insured is totally disabled, as described in the rider policy form, monthly policy charges are waived. Insureds ages 0-59 may have this rider. There is a cost for this rider.

5 Death benefit options Three options mean you have choice to select the one that best fits your needs. Choose the one that offers the level of coverage you re looking for. Option 1 This death benefit is equal to the face amount. Option 2 This death benefit is equal to the face amount plus the accumulated value. Option 3 This death benefit is equal to the face amount plus the premiums paid less withdrawals. A flexible solution for your needs UL Accumulation II can offer the protection you need and the flexibility you seek. It helps build a foundation to protect what is important to you. UL Accumulation II is a solution that provides benefits to your beneficiary in the event of your death and also offers you benefits to meet living needs. It can help you meet financial commitments now and provide protection for the future.

6 1 The interest rate can change at any time without notice. Guarantees are based on the claims-paying ability of the issuing insurance company. 2 Loans or surrenders may be subject to policy charges, surrender charges and transaction fees. These charges and fees will reduce cash value and death benefit. 3 Modified Endowment Contract as defined by The Technical and Miscellaneous Revenue Act (TAMRA), established in Consult your tax advisor for more information. 4 You may increase, decrease or skip premium payments, provided you have built up enough accumulated value within your policy to cover the cost of insurance and other policy charges. 5 The policy rider description is not intended to cover all restrictions, conditions or limitations that may apply. See the rider for full details. Riders are subject to state variations. Some riders may not be available in all states. Some riders may require additional premium. The Chronic Illness Death Benefit Advance rider and Terminal Illness Death Benefit Advance rider are not available in the state of Massachusetts. 6 Before you make a claim for an accelerated benefit, you should seek assistance from your personal tax advisor. 7 Guarantees based on the claims-paying ability of the issuing insurance company. WE LL GIVE YOU AN EDGE Principal National Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa , Your financial representative can discuss the Principal Universal Life Accumulation II policy and how it can meet your specific needs. Insurance products from the Principal Financial Group (The Principal ) are issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company, Des Moines, IA Not FDIC or NCUA insured May lose value Not a deposit No bank or credit union guarantee Not insured by any Federal government agency Principal National Life Insurance Company Policy Form: SN 76; Rider Forms: SN 7, SN 8, SN 9, SN 10, SN 11, SN 25, SN 38, SN 41, SN 49, SN 54, ICC14 SN 92/SN 92 and ICC14 SN 93/SN 93 Principal Life Insurance Company Policy Form: SF 913; Rider Forms: SF 612, SF 618, SF 729, SF 794, SF 803, SF 804, SF 863, SF 880, SF 892, SF 898, SF 915 and SF 916 BB /2015 t z