In today’s economic environment, many individuals seek life insurance protection that can offer greater cash accumulation potential than traditional universal life products, but also have less risk than variable life insurance. The Principal Financial Group® announces a new product; Principal Indexed Universal Life Flex, which delivers affordable protection, flexibility and consumer-friendly features.
"This product goes beyond the traditional universal life insurance design and couples upside accumulation potential and downside interest rate protection in one product," said Nick Cecere, vice president, U.S. Insurance Solutions Distribution for The Principal®. "Financial professionals can now offer a product with long-term death benefit guarantees, strong cash value accumulation potential and interest rate protection during economic downturns."
The upside potential of Principal Indexed Universal Life Flex is provided by two index-linked accounts that policy holders can choose from, including one featuring the S&P 500® Total Return Index. Unlike most indexes used in indexed universal life products, S&P 500® Total Return Index includes reinvested dividends of the underlying stocks, offering further growth potential. S&P 500® Price Return Index, without dividends, and a fixed account option are also available.
Principal Indexed Universal Life Flex key features include:
Two levels of death benefit guarantee: A 10-year no-lapse guarantee provision, or an optional extended no-lapse guarantee rider that provides longer-term guarantees.
Policy cash accumulation: The opportunity for growth through index-linked interest (up to a cap rate) and a low policy charge structure.
Protection from downside interest rate risk: A minimum interest rate (0%) is credited to a policy even if the percentage change of the linked index is negative.
Illustration transparency: A volatility report available with every illustration helps consumers understand the potential interest rate fluctuations that can occur with indexed universal life products.
The policy offers a number of riders that provide additional flexibility to meet changing needs, including accelerated benefit riders for chronic and terminal illness.
"This powerful combination of guarantees, unique S&P 500® Total Return Index-linked account and low policy charge structure help give financial professionals an advantage in offering an innovative approach. It not only provides protection for the future, but also greater cash value accumulation potential," adds Cecere.
All guarantees are based in the claims-paying ability of the issuing insurance company.
Policy rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details. Riders are subject to state availability and may have additional costs.