Bonus and step-up features
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. If market gains are greater than the bonus amount, they're locked into the withdrawal benefit base. This happens annually on the contract anniversary. 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.
Learn more
Contact your local Principal® rep to ask about variable annuity solutions:
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.
Annuity products and services are offered through Principal Life Insurance Company. Principal Variable Contracts Funds are distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.
Guarantees are based on the claims-paying ability of the issuing insurance company.
All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not obligations of, nor backed by, the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.
Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details.
Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc., in various countries around the world.
2874476-052023