New, higher payout rates.
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.
New, higher payout rates.
70% of respondents to a recent survey think their advisor has a responsibility to discuss guaranteed income options with them.1
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.
Both of these features are provided at no extra cost and offer another way to way to increase your clients' future guaranteed income.
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.
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
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
35% equity
65% fixed income
50% equity
50% fixed income
65% equity
35% fixed income
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.
50% equity
50% fixed income
65% equity
35% fixed income
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
50% equity
50% fixed income
65% equity
35% fixed income
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
Investment
performance
The importance
of guarantees
Explaining a guaranteed
income floor to clients
1 2018 Guaranteed Lifetime Income Study (GLIS), Greenwald & Associates and Cannex, 2018.
Withdrawals prior to age 59½ are subject to a 10% IRS penalty tax.
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.
1599687-042021