Bonus and step-up features

All of our guaranteed minimum withdrawal benefit (GMWB) riders provide the opportunity for your clients’ money to grow tax-deferred until they take their first withdrawal.1 They also offer an annual step-up that locks in annual market gains for your clients. And two of our riders offer an annual bonus for each year they don’t take a withdrawal.

The bonus is available with the Target Income Protector and Flexible Income Protector Plus riders.

If clients are within the bonus period, a bonus is added to their withdrawal benefit base for each year they don't take a withdrawal.2 The bonus is not added to their accumulated value. By adding it to the withdrawal benefit base, the bonus increases their future guaranteed income amount. Once they've taken a withdrawal, they're no longer eligible for the bonus.3

The annual step-up is available with all our riders.

This automatic feature is another way to increase your clients' future guaranteed income. Annual market gains, when greater than the bonus amount, are locked into the withdrawal benefit base. Clients get guaranteed income for life based on this stepped-up value. The step-up feature is available until the later of age 80 or 10 years after contract issue.

This example is hypothetical and is not meant to show actual results or predict future results. It’s intended to be educational in nature and is not intended to be taken as a recommendation. Circumstances and experience will be different than that shown.

PLIS II resources

Bonus and
step-up features

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PLIS II
quick reference

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Contact your local Principal┬« rep to ask about variable annuity solutions: 

Call today: 800-309-1623
Request more information and we'll be in touch as soon as possible.

1 Each of our GMWB riders has an annual rider charge.

2 Refer to the prospectus and the applicable GMWB Charges and Percentages Prospectus Supplement for current bonus information.

3 If your client makes a withdrawal before turning age 59½, they may pay a 10% IRS penalty tax. Withdrawals made before the contract anniversary of the year the oldest owner turns 59½ are treated as excess withdrawals when calculating the withdrawal benefit payment they’ll receive for life.

 

For financial professional use only. Not for distribution to the public.

 

Guarantees are based on the claims-paying ability of Principal Life Insurance Company.

 

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.

 

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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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