Principal Indexed Universal Life FlexSM
How it Works
Principal Indexed Universal Life Flex (IUL Flex) can help you achieve some of your financial goals by building cash value. It offers many of the same benefits as traditional universal life insurance, with one primary difference - the way interest is credited to the cash value of the policy. You can choose whether to allocate your premiums to an index-linked account, a fixed account or both. The index-linked options are what provide upside potential.
- Affordable Coverage - IUL Flex is designed for those who want affordable death benefit protection with cash value accumulation potential.
- Tax-free survivor benefits - Your beneficiaries receive a federal income tax-free death benefit.
- Upside potential and downside protection - Interest is credited based in part on the potential upward movement of a specific stock market index or indexes over a specific period of time. Over the long-term, this could mean more cash value to help you meet your needs. IUL Flex also has a minimum guaranteed interest rate that protects against index losses. Your policy is guaranteed to never be credited with less than 0 percent interest.
- 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.
- Tax-deferred accumulation - Your cash value growth is not reportable for taxation, and you don't receive a 1099 form. Since you pay no current taxes on earnings, there is more money to compound. Your money grows faster than if it were taxed every year.
- Flexible premium payments - You may select how often and how much your premium payments will be, with some limitations. You may choose to pay the very minimum premium to provide the protection you need or pay the maximum premium allowed to build cash values. Premiums are flexible, unlike some secondary guarantee products where certain premium amounts have to be paid within a certain time period to keep guarantees.
- Optional Extended No-Lapse Guarantee - If you desire a longer duration of no-lapse guarantee protection than 10 years (included in base policy), the Extended No-Lapse Guarantee rider may provide it.
- Permanent protection - To get long-term coverage, you don't need to go through underwriting again, as often happens with term insurance.
- Annual statements - Keep informed on your policy's performance in meeting your goals.
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- Modified Endowment Contract as defined by The Technical and Miscellaneous Revenue Act (TAMRA), established in 1988. Consult your tax advisor for more information.
Insurance products from the Principal Financial Group® (The Principal®) are issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company, Des Moines, IA 50392
Policy Form #SN 85 and SF 937