Principal® Lifetime Income Solutions II

Principal Lifetime Income Solutions II

Guarantees are better than hope

Markets go up and down, so losing investment value is a reality for most of us. But it’s harder to deal with in retirement. And without a source of guaranteed income, this could affect how much your clients can spend.

Providing a source of guaranteed income, like that provided by Principal Lifetime Income Solutions II Variable Annuity (PLIS II), can help insure you won’t have to do that.

70% of respondents to a recent survey think their advisor has a responsibility to discuss guaranteed income options with them.1

The benefits of PLIS II

Principal Lifetime Income Solutions II (PLIS II) allows your client to keep pace with inflation by keeping money invested in the market. They enjoy tax-deferred growth and can access money through scheduled and unscheduled withdrawals. Plus, PLIS II offers a guaranteed death benefit, so clients can leave a financial legacy to their loved ones.

Guaranteed income riders

While a PLIS II variable annuity can help clients grow their investment, it also guarantees future income. Three guaranteed minimum withdrawal benefit (GMWB) riders are available—Target Income Protector, Flexible Income Protector, and Flexible Income Protector Plus. Your clients can choose the rider that best fits their financial goals. Each creates a guaranteed income stream they can’t outlive.1
Guaranteed income – three different ways

Bonus and step-up features

PLIS II’s annual step-up feature is available with each of the three GMWB riders. Annual market gains are locked into a client’s withdrawal benefit base.2
 

The annual bonus is available with the Target Income Protector and Flexible Income Protector Plus riders. If clients are within their bonus period, the bonus is added to their withdrawal benefit base for each year they don’t take a withdrawal.
 

Both of these features are provided at no extra cost and offer another way to way to increase your clients' future guaranteed income.

Bonus and step-up features

Investment options

Your clients will be able to allocate money to a number of different subaccount investments depending on the rider they choose. Our riders are designed to offer both traditional and risk-controlled funds. The right one for your clients depends on how much risk they’re willing to take with their investment.

Track PLIS II investment performance

Target Income Protector
  • Diversified Growth Volatility Control*
  • Diversified Balanced Volatility Control*
  • Diversified Income
  • Fidelity VIP Government Money Market
  • 6- & 12-month DCA accounts
Flexible Income Protector
  • Diversified Growth
  • Diversified Balanced
  • Diversified Income
  • Diversified Growth Managed Volatility*
  • Diversified Balanced Managed Volatility*
  • Fidelity VIP Government Money Market
  • 6- & 12-month DCA accounts
Flexible Income Protector Plus
  • Diversified Growth
  • Diversified Balanced
  • Diversified Income
  • Diversified Growth Managed Volatility*
  • Diversified Balanced Managed Volatility*
  • Fidelity VIP Government Money Market
  • 6- & 12-month DCA accounts

Investment asset allocation

PVC Bond

Market

Index Fund

PVC Large

Cap S&P 500

Index

Account

PFI MidCap

S&P 400

Index Fund

PFI SmallCap

S&P 600

Index Fund

PFI

International

Equity Index

Fund

Volatility

Control

Overlay

Traditional diversified funds

These are composed of indexed funds that utilize a lower cost fund of funds investment strategy. They have a pre-determined allocation that are rebalanced monthly to the original allocation. Traditional diversified funds are designed to be cost effective and easy to understand investment options.

Diversified income segment chart

Diversified

Income

35% equity

65% fixed income

Diversified balanced segment chart

Diversified

Balanced

50% equity

50% fixed income

Diversified growth segment chart

Diversified

Growth

65% equity

35% fixed income

Managed volatility diversified funds

These funds seek to act as a shock absorber during periods of high market volatility. They are sub-advised by Spectrum Asset Management using a proprietary method to predict and manage market volatility. Managed volatility diversified funds employ some active management techniques.

Diversified balanced managed volatility segment chart

Diversified Balanced

Managed Volatility*

50% equity

50% fixed income

Diversified growth managed volatility segment chart

Diversified Growth

Managed Volatility*

65% equity

35% fixed income

*These funds use the PVC LargeCap S&P 500 Managed Volatility Index Account

Volatility control diversified funds

These funds are sub-advised by Principal Global Equities and use a pre-determined rules-based approach to react to market volatility. Volatility control diversified funds utilize a 100% reactive strategy

Diversified balanced managed control segment chart

Diversified Balanced

Managed Control

50% equity

50% fixed income

Diversified growth volatility control segment chart image

Diversified Growth

Volatility Control

65% equity

35% fixed income

Additional volatility protection

Our riders are designed to offer both traditional and risk-controlled funds. Risk-controlled funds use investment strategies designed to offer protection from the ups and downs of the market. Ours are based on our traditional Diversified funds. They don’t eliminate risk for losses but seek to manage equity exposure based on market volatility.

PLIS II resources

Principal® Lifetime
Income Solutions II

Principal® Lifetime Income
Solutions II product guide

Investment
performance

Three guaranteed
income riders
available

Three guaranteed income
riders

The importance
of guarantees

1 2018 Guaranteed Lifetime Income Study (GLIS), Greenwald & Associates and Cannex, 2018.
For financial professional use only. Not for distribution to the public.
Guarantees are based on the claims-paying ability of Principal Life Insurance Company.
Withdrawals prior to age 59½ are subject to a 10% IRS penalty tax.
Tax-qualified retirement arrangements, such as IRAs, SEPs and SIMPLE-IRAs are tax deferred. You derive no additional benefit from the tax-deferral feature of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax-qualified retirement arrangement, to benefit from the annuity's features other than tax deferral. These features may include guaranteed lifetime income, death benefits without surrender charges, guaranteed caps on fees and the ability to transfer among investment options without sales or withdrawal charges.
Principal® Lifetime Income Solutions II Variable Annuity issued by Principal Life Insurance Company. Securities offered through Principal Securities, Inc., 800-852-4450, member SIPC and/or independent broker/dealers. Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392.
1599687-042021

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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
 
Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, Iowa 50392.
 
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