The Principal Offers Business Owners a New Way to Rebuild and Protect
May 27, 2010 (Des Moines, IA) - Owners cite growing their business (70 percent) as their top business goal followed by achieving business stability (47 percent) according to Business Priorities research conducted by the Principal Financial Group® and Harris Interactive. With death benefit protection, an investment component and a new business insurance rider, Principal Variable Universal Life Income IISM can help owners address both goals.
The Surrender Value Enhancement Rider gives policyholders the opportunity to accumulate high cash value early in the policy helping to create assets needed to grow their business. At the same time, the policy offers long-term death benefit protection, giving more stability for business owners or key employees.
"One of the biggest lessons learned from the financial crisis is the importance of diversification and this lesson is particularly important for business owners who juggle a variety of personal and business financial needs," said Steve Parrish, national advanced solutions consultant for the Principal Financial Group. "Variable universal life insurance allows owners to both protect and accumulate, making it an important consideration as they rebuild their portfolio."
The cash value of a business owned policy is an asset on the balance statement of the company. This rider increases the cash surrender value in the first seven years of the policy which reduces the hit to company earnings created by the difference between the premium and the cash value of the policy. And, different from other investments, business life insurance offers tax-advantaged savings.
Designed to meet a number of different needs, Principal VUL Income II has several additional key features including:
- Return of Cost of Insurance Rider will refund all cost of insurance charges incurred up to the latter of the 15th policy year or when the insured turns age 60.
- Life Paid Up Rider keeps the policy from lapsing when a policy is used for supplemental retirement income.
- Death Benefit Guarantee Rider allows the policyholder to choose a premium level that guarantees death benefit to age 65, 85 or 100 at no additional charge.
About the Principal Financial Group
The Principal Financial Group® (The Principal®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $293.4 billion in assets under management and serves some 18.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
Riders may have additional costs. Policy rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to rider for complete details. Riders may not be available in all states. Guarantees are based on the claims paying ability of the issuing insurance company.
Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, 800-247-9988, member SIPC. Principal Life and Princor® are members of the Principal Financial Group, Des Moines, IA 50392.
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Before investing in variable life insurance, investors should carefully consider the investment objectives, risks, charges and expenses of the policy and the underlying investment options. This and other information is contained in the free prospectus, which can be obtained from your local representative, or visit www.principal.com, or call 800-247-9988. Please read the prospectus carefully before investing.