Principal Variable Universal Life Income III
How It Works
Principal Variable Universal Life Income IIISM (VUL Income III) is an effective way to help you protect your family and work toward achieving your retirement goals. Unlike other life insurance products, VUL Income III is specifically designed to provide you with the death benefit protection you need and serve as a tax-favorable product to enhance your retirement income.
- Survivor Benefits - Your beneficiaries receive a federal-income-tax-free death benefit.
- Tax-Deferred Growth - VUL Income III policies accumulate cash value on a tax-deferred basis. As your cash value builds, you do not incur any taxes or receive a 1099 form. Since you pay no current taxes on earnings your money grows faster than if it were taxed every year.
- Withdrawals - The Automated Income distribution feature gives you easy access to the accumulated value of your VUL Income III policy.
- 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.
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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 information, please see Principal Variable Universal Life Income III Charges and Expenses (BB 10616).
- 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 #SN56; Rider Form #SN64