A news release said that the Investment Protector Plus, an optional rider of the new Principal Investment Plus Variable Annuity, guarantees investors will get back at least 100% of their amount invested, through withdrawals, no matter how their accounts with fund investments perform.
“This product gives retirees flexibility,” said Melissa Crew, director, Annuity Product Development, The Principal, in the announcement. “They can withdraw up to 5% of their investment each year for life or 7% each year for about 14 years.”
The Investment Protector Plus rider also increases investors’ guaranteed withdrawal benefit by 5% for each year they don’t take withdrawals during the first five years of their contract – increasing their guaranteed withdrawal amount up to 125% of the principal invested, the company said. In addition, investors can “step-up” their withdrawal amount every five years to take advantage of favorable market conditions, according to the announcement.