Fixed Deferred Annuities
Overview
Depending on the annuity product, a fixed annuity can be funded either with a lump sum contribution or with a series of contributions over a period of time. Fixed annuities are considered to be a more conservative investment option than variable annuities. Funds in fixed annuities grow steadily, and are not subject to downfalls in the stock market.
Build Your Financial Future with a Fixed Annuity
When you choose a fixed annuity from Principal Life Insurance Company, you receive an investment option that avoids stock market volatility, plus you can select an income benefit that guarantees a stream of income for life. And unlike many other investments, such as a CD1, with a fixed annuity you also receive specific tax benefits. Principal Life offers the following:
- Single Premium Deferred Annuities - Chose from a portfolio of products that offer a variety of guarantee periods, an option that might provide an additional interest rate in the first year and one product that calculates earnings based on the S&P 500 Index2.
- Flexible Premium Deferred Annuity Plus - A flexible product that allows the convenience of additional premium contributions into one contract. Allowing you the opportunity to grow additional income for retirement.
Fixed Annuity Benefits
- Guaranteed Return of Principal - Unfortunately, most
investment vehicles do not guarantee you will get back everything you put
in. Most fixed annuities from Principal Life guarantee a return of all principal
payments at full surrender (less any previous withdrawals or applicable surrender
charges).
Guaranteed Interest Rates - Over the years, it is common for interest rates to go up and down. Even if interest rates go down, Principal Life fixed annuity rates will never dip below the minimum interest rate stated in the contract.
- Access to Your Money - With each fixed annuity from Principal Life- through the Free Surrender Privilege - you can withdraw money without surrender charges up to a set percentage of your accumulated value each contract year. In addition, you can withdraw any amount without surrender charges after completing the surrender charge period. All withdrawals prior to age 59½ may result in a 10 percent IRS penalty tax.
- Accessing Money in an Emergency - The Waiver of Surrender Charge rider3 allows you to access your money in an emergency without surrender charges. We waive surrender charges on full or partial surrenders taken before income payments begin if the owner or annuitant:
- Becomes confined to a health care facility for 60 or more consecutive days, or
- Is terminally ill or totally and permanently disabled after the contract is issued.
- Probate Simplification - With a fixed annuity from Principal Life, all death benefit proceeds pass outside of probate (if payable to a beneficiary other than the estate) so your beneficiaries avoid lengthy delays in receiving your bequest.
- Automatic IRS Minimum Distribution Notification - You do not need to worry about the 50 percent penalty for not withdrawing the IRS required minimum distribution from the contract. Each year, we notify you of the required withdrawal amount necessary to meet the IRS minimum distribution rules.
- Accessing Account Options - In addition to receiving ongoing statements, you have unlimited access to your account information via:
- The Internet - Go to www.principal.com and choose Login, then Personal Login, to access your accumulated value at any time.
- Phone - Call our toll-free automated customer service line at 1-800-852-4450, between 7:00 a.m. and 9:00 p.m. CST (Monday - Saturday) to access interest rates and policy information or to initiate changes to your contract.
