New, higher payout rates.
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.
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5.75% guaranteed lifetime income now available with our Flexible Income Protector rider.
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
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
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
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.
Both of these features are provided at no extra cost and offer another way to way to increase your clients' future guaranteed income.
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.
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
35% equity
65% fixed income
Diversified
Balanced
50% equity
50% fixed income
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*
50% equity
50% fixed income
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
50% equity
50% fixed income
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
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