The life insurance tool is meant to offer clients the ability to accumulate tax-deferred income through a variety of funding strategies and personal allocation plans.
The VUL Income’s design features a Return of Cost of Insurance (COI) rider, combined with an automated income feature. The insurance generates income out of the policy and with the Return of COI rider, clients are guaranteed the return of all cost of insurance charges assessed up to the later of the twentieth policy year or at the age 60 policy anniversary, according to a news release.
The Return of COI charges are credited to the policy value over a period of five years. Further, clients can now select a death benefit guarantee of age 100, 85 or 65. With a Life Paid-Up rider, clients can rest assured that heavily loaded policies will not lapse and will remain in force to age 100, the company said.
Supplemental retirement payments from the policy can be received monthly, quarterly, semi-annually or annually, with three ways to structure withdrawals – percentage of net surrender value, a fixed amount or a maximum withdrawal amount.
Through Fixed Dollar Cost Averaging (DCA) accounts, clients invest at regular intervals instead of all at once. DCA allows clients to earn an enhanced interest rate while systematically transferring money into the investment divisions. At issue, clients may select either a six or twelve month DCA duration.
New Principal LifeTime Accounts help clients maintain a proper investment mix. The client puts 100% of his or her allocation in the account that is closest to the year he or she plans to retire. That account invests in underlying Principal Mutual Funds and automatically modifies the investment mix as the account gets closer to its target retirement year, the company said.
“For millions of people, Social Security, qualified retirement plans and savings accounts will inevitably leave a gap between current income and their income replacement goals for retirement. This, combined with a need to protect the livelihoods of a spouse or family members, makes Principal Variable Universal Life Income a very practical product,” said Jerry Patterson, chief marketing officer and vice president of the Life & Health Division of The Principal, in a news release. “While tax-deferred policy values supplement retirement income, the life insurance policy provides a much needed death benefit.”
For more information, call the Principal National Sales Desk at 800-654-4278, ext. 221.