Financial Professionals Financial professional news Exciting enhancements to our Principal ® RILA annuity products
May 01, 2025

Exciting enhancements to our Principal® RILA annuity products

As a continuation of our commitment to offering flexible choices designed to meet your clients’ investment needs, we’re excited to announce enhancements to our registered index-linked annuities (RILA) products effective May 1, 2025.

Enhancements to Principal® Strategic Outcomes

0% buffer options have been added to select 6-year segments, offering the ability to maximize the upside return potential of the index by giving up downside protection.

INDEX PARTICIPATION RATE ENHANCED RATE
S&P 500® 6-Year
0% Buffer		 115% 140%
S&P 500® 6-Year
10% Buffer		 107% 132%
Russell 2000® 6-year
0% Buffer		 125% 150%
Russell 2000® 6-year
10% Buffer		 115% 140%

 

Enhancements to Principal® Strategic Outcomes and Principal® Strategic Income

  • The Nasdaq-100 Index® has been added as an available index option.
  • 20% buffer options have been added to select segments for clients seeking to minimize downside risk.
SEGMENT TERM INDEX OPTION PROTECTION OPTION
1-year Nasdaq-100® 20% buffer
6-year Nasdaq-100® 20% buffer
6-year Russell 2000® 20% buffer

For a complete list of available segments, check out the marketing resources below.

Additional changes effective May 1, 2025:

Principal® Strategic Outcomes

  • The MSCI EAFE Index is being discontinued and will no longer be available for applications signed or for segment renewals on existing contracts. Performance for clients who selected the MSCI EAFE Index prior to May 1 will continue to be based on the MSCI EAFE Index until the end of the segment term.
  • The bond adjustment will no longer apply up to the free withdrawal amount.

Principal® Strategic Outcomes and Principal® Strategic Income

  • Residual payments will no longer be accepted. Because our RILA products are single premium products, additional funds cannot be added to the original premium once the contract is issued. As a result, any residual funds sent from the ceding carrier after issue will be distributed to the client via check. When this occurs, financial professionals will be notified by email with a copy of the client letter attached.
  • Premiums are now required one valuation day in advance of the segment start date, rather than two. In other words, the premium payment (plus credited interest) will be allocated from the initial holding account to the selected segment option(s) on the next segment start date (i.e., the next 9th or 23rd of any month), if the premium payment was received at least one valuation day prior to the next segment start date.

Marketing resources

Materials have been updated to include information on the new buffers and the addition of the Nasdaq-100®:

Additional information and resources

  • Web-based access: View current and upcoming rates at principal.com/strategicoutcomes and principal.com/strategicincome
  • State approvals: As of May 1, 2025, the new segments for Principal® Strategic Outcomes and Principal® Strategic Income are available in all states except: Alaska, California, District of Columbia, Delaware, Illinois, Louisiana, Maryland, Minnesota, Montana, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, and Vermont.
  • National Association of Insurance Commissioners (NAIC) carrier-specific training is required before your first sale of Principal® Strategic Outcomes and Principal® Strategic Income. If you have already completed this training, you do not need to retake for these new segments.

Questions?

Contact our annuity sales team: 866-309-1623.

Footnotes

The rate enhancement rider is available for a fee on Principal ® Strategic Outcomes only. The rider is available on all index-linked segments. Contract rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to rider for full details.

For financial professional use only. Not for distribution to the public.

May not be available in all states or with all broker dealers.

Principal® Strategic Outcomes 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.

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 59 1/2 may be subject a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.

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

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.

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.

S&P 500® Price Return Index
The S&P 500® Price Return Index was established by Standard & Poor’s. The S&P 500® Price Return Index includes 500 large cap stocks from leading companies in leading industries of the US economy, capturing 75% coverage of U.S. Equities. The S&P 500® Price Return Index does not include dividends declared by any of the companies included in this Index. The S&P 500® Price Return Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) has been licensed for use by Principal Life Insurance Company (“Principal Life”). S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Principal Strategic Outcomes and Principal Strategic Income are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Price Return Index.

Nasdaq-100 Index®
Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and NDX® are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Principal Financial Group Inc. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

Russell 2000® Price Return Index
Principal® Strategic Outcomes and Principal® Strategic Income have been developed solely by Principal Life Insurance Company. Principal® Strategic Outcomes and Principal® Strategic Income are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the Russell 2000® (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of Frank Russell Company or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of Principal® Strategic Outcomes. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Principal® Strategic Outcomes and Principal® Strategic Income or the suitability of the Index for the purpose to which it is being put by Principal Life Insurance Company.

MSCI EAFE PRICE RETURN INDEX (MXEA)
THIS PRODUCT IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MSCI INC. ("MSCI"), ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, OR RELATED TO, COMPILING, COMPUTING OR CREATING ANY MSCI INDEX (COLLECTIVELY, THE "MSCI PARTIES"). THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY PRINCIPAL LIFE INSURANCE COMPANY ("ISSUER" OR "ISSUER OF THE PRODUCT"). NONE OF THE MSCI PARTIES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE ISSUER OR OWNERS OF THIS PRODUCT OR ANY OTHER PERSON OR ENTITY REGARDING THE ADVISABILITY OF INVESTING IN PRODUCTS GENERALLY OR IN THIS PRODUCT PARTICULARLY OR THE ABILITY OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND CALCULATED BY MSCI WITHOUT REGARD TO THIS PRODUCT OR THE ISSUER OR OWNERS OF THIS PRODUCT OR ANY OTHER PERSON OR ENTITY. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THIS PRODUCT OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE MSCI INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, PRICES AT, OR QUANTITIES OF THIS PRODUCT TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR THE CONSIDERATION INTO WHICH THIS PRODUCT IS REDEEMABLE. FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION OR LIABILITY TO THE ISSUER OR OWNERS OF THIS PRODUCT OR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR OFFERING OF THIS PRODUCT. ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE PRODUCT, OWNERS OF THE PRODUCT, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

New investments are no longer accepted into the MSCI index segments as of May 1, 2025, but segment choice will continue to be based on MSCI index performance for the duration of the segment selected.

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.

711 High Street, Des Moines, Iowa 50392
© 2025 Principal Financial Services, Inc

4431254-042024 | 04/2024