Principal IRA ExchangeSM
Principal IRA Exchange helps bring new life to your Individual Retirement Account (IRA) while protecting your legacy and securing the financial futures of your beneficiaries. This tax-efficient program provides you the opportunity to avoid the double taxation problems that IRAs could have - if left in an estate.
The Right Solution for the Right Person
Principal IRA Exchange is a unique solution for specific cases. You meet the profile of an ideal candidate if:
- You are financially full. Your financial needs for the rest of your life can be met without using the IRA.
- You are a good candidate for life insurance.
- You want to transfer the maximum amount of wealth onto the next generation.
- You want to reduce potentially high combined income and estate taxes on your existing IRA.
- Your heirs are likely to be in a high income tax bracket.
Benefits You Receive
Principal IRA Exchange from Principal Life offers a complete turnkey package that helps meet your needs - and the needs of the next generation. We've made the process of buying life insurance quick, easy and convenient. Principal IRA Exchange provides you:
- Our competitive Universal Life Protector II SM (UL Protector II) policy with lapse protection1 - allowing your beneficiaries to maximize the investment dollars you worked so hard to save.
- Our competitive fixed period Income Annuity (SPIA)2 - available to finance the universal life premium.
- Administrative convenience3 – Principal Life's unique administrative approach seamlessly withholds the tax on the fixed period income annuity and transfers the after-tax amount directly to fund the UL Protector II policy.
- A simplified underwriting process - our TeleApp underwriting process guarantees that you will be underwritten in a fast, efficient and simple manner.
1 The lifetime lapse protection can be applied on a limited pay basis with outstanding underwriting.
2 Once annuity payments begin, they cannot be changed and you give up control of the principal in your account.
3 When both the UL policy and fixed period income annuity are purchased from Principal Life.
Policy Form #SF791 and Contract Form #SF244/SF245
Approval #355252006
