Financial Professionals Annuities overview Secure Income Protector Rider

Secure Income Protector Rider

Understanding the Secure Income Protector rider

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Principal® Strategic Income is a registered indexed-linked annuity (RILA) designed to provide guaranteed lifetime income for retirement. When clients are ready to retire they’ll have a source of protected money that’s guaranteed for as long as they live.

Grow and protect future income

The Secure Income Protector rider is what helps create guaranteed lifetime income. It creates an income benefit base that’s protected from market losses.

The performance of an investment segment is evaluated on each segment end date, and any gains are added to overall account value. Gains from the account’s accumulated value step up into the benefit base. This step up is locked in even if future segment end dates show losses.

Understanding deferral credits

Future income can also grow through deferral credits. Each year the client doesn’t take an income withdrawal, they receive a deferral credit, which is added to their initial secure income withdrawal percentage.

This graph shows how deferral credits work to increase a client's secure income withdrawal percentage. The percentage grows each

Rates are hypothetical and for illustrative purposes only.

Create guaranteed lifetime income

When the client begins taking money, their benefit base and withdrawal percentage work together to calculate the amount of their annual guaranteed income.

Other factors that can affect the amount of guaranteed income received, include:

  • Age of client when they start taking income.
  • Whether income is for one or two people.
  • What income option is chosen.

Clients can choose from two different income options, Level income or Tiered income.

Level income option

The amount of guaranteed lifetime income is never reduced, regardless of the account’s accumulated value.

This graph shows that with the level income option the client's guaranteed income amount remains the same for their lifetime.

Rates are hypothetical and for illustrative purposes only.

Tiered income option

This option provides higher income when income payments first start, then decreases when the account value reaches zero.

This graph shows that with the tiered income option the client's guaranteed income amount is reduced when their account balance

Rates are hypothetical and for illustrative purposes only.

Income distribution program

This program helps clients avoid any surrender charges, or equity or bond adjustments. Their annual income payment will be calculated and placed in a fixed account at their segment anniversary. Income withdrawals will come out of this fixed account.

Learn more

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Footnotes

As long as no excess withdrawals have been taken. Withdrawals taken from index-linked segments between the segment start and end dates are subject to interim value calculations. This occurs at the end of each valuation day and includes the equity adjustment to the crediting base. Please refer to the prospectus for more information.

For Financial Professional use only.
May not be available in all states or with all broker dealers.

Principal® Strategic Outcome and Principal® Strategic Income do not directly participate in any stock, equity investments or index. It is not possible to invest directly in an index.

Investing involves risk, including the possible loss of principal.

Before investing in variable annuities, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus which can be obtained from your local representative or online at principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.

IMPORTANT CONSIDERATIONS
Index-linked deferred annuity contracts are complex insurance and investment vehicles. This contract is a security and there is a risk of substantial loss of principal and earnings. The risk of loss may be greater when early withdrawals are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a segment option has increased. Clients should consult with a financial professional about the appropriateness of this product based on their financial situation and objectives.

There is risk that this segment interim value could be less than the original premium payment even if the applicable Index has been performing positively. The buffer or floor rate provides limited protection. There is a possibility of a significant amount of loss of the total premium payment, credited interest and prior earnings. In the index-linked segment options it is possible that the total loss could be 100%. If clients choose to allocate amounts to an index-linked segment option subject to a cap rate, that rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. The participation rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. It is possible to receive less than the full protection of the buffer rate or floor rate. Once a segment lock-in is executed, it is irrevocable for that segment term. A lock-in will not be applied retroactively and can only be exercised for the entire segment option. A segment lock-in may only be exercised once per segment term for each index-linked segment option. There is no guarantee that any particular segment option or index will be available during the entire period.

Withdrawals will reduce the contract value and death benefit. Some withdrawals may be subject to additional charges and adjustments. Withdrawals before age 59½ may be subject a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.

Guarantees are based on the claims-paying ability of Principal Life Insurance Company®. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not obligations of, nor backed by, the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Annuity products and services are offered through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.

Annuities have limitations. They are long-term vehicles designed for retirement purposes. Annuities are not intended to fund short-term savings goals.

Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.

© 2024 Principal Financial Services, Inc.

Principal® Strategic Income: SF 1027, SF 1028, SF 1029, SF 1031, SF 1032, SF 1053, SF 1054, SF 1055, ICC13 SF 932 / SF 932

Not FDIC or NCUA insured
May lose value • Not a deposit • No bank or credit union guarantee
Note insured by any federal government agency