Principal Variable Universal Life - Business
How It Works
Principal Variable Universal Life - BusinessSM (VUL-Business) is a variable universal life insurance policy designed to provide death benefit protection and help business owners protect their business, retain key employees and implement tax advantaged retirement benefits.
- Survivor Benefits - Your beneficiaries receive a federal-income-tax-free death benefit.
- Tax-Deferred Growth - VUL-Business policies accumulate cash value on a tax-deferred basis. As your cash value builds, you do not incur income taxes for interest earned. Since you pay no current taxes on earnings, your money grows faster than if it were taxed each year.
- Tax-free liquidity - You may take policy loans or partial surrenders without creating a taxable event, provided the policy is not a Modified Endowment Contract. Loans or surrenders may be subject to policy charges, surrender charges and transaction fees, and will reduce the cash values and death benefits.
- Ultimate Policy Control- In addition to the tax advantages, you control your policy and the benefits it provides, such as:
- Increasing or decreasing the death benefit as your needs change
- Changing the premium amount and the timing of your payments
- Determining which investment options will help you work toward your financial goals. Keep in mind that investment return and principal will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Before investing in variable life insurance, investors should carefully consider the investment objectives, risks, charges and expenses of the policy. This and other information is contained in the free prospectus, which can be obtained from your local representative or online at www.principal.com. Please read the prospectus carefully before investing.
View the prospectus for Variable Universal Life - Business (PDF). (Note: the prospectus for VUL-Business is the Executive Variable Universal Life II Prospectus - LV311 A.)
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- In exchange for the death benefit, life insurance products charge fees such as mortality and expense risk charges and surrender fees. For more detailed charge information, please see Principal Benefit Variable Universal Life Income II Charges (LV 353).
- Modified Endowment Contract as defined by The Technical and Miscellaneous Revenue Act (TAMRA), established in 1988. Consult your tax advisor for more information.
- After policy issue, face amount increases may be subject to additional underwriting.
- You may increase, decrease or skip premium payments provided you have enough policy value within your policy to cover the cost of insurance and other policy charges.
Policy Form: SF 837