Create a financial legacy

Protecting your clients' legacy

A standard death benefit is automatically issued with Pivot contracts, and clients also have the option of choosing between two enhanced death benefit options.

The death benefit can be an important feature for clients who want to help provide financial security to their beneficiary(ies) but are uninsurable through traditional life insurance. Our death benefits require no underwriting.

Our enhanced annual step-up death benefit allows clients to use annual gains in their account value to create a greater guaranteed death benefit.

Pivot and trust-owned annuities

Designed to grow wealth for future generations

Trusts are a popular way for clients to help provide a financial legacy for their beneficiaries. Many trusts are set up to distribute earnings every year, which can result in significant tax burdens. A trust-owned annuity, however, offers many of the same benefits as an individual annuity might:

  • Income can be turned on or off
  • Assets grow tax-deferred1
  • Asset allocation can be reallocated without transaction costs or capital gains

Both grantor trusts and non-grantor trusts can be used to set up trust-owned
annuities. These trusts offer an option called the “pass-in-kind” strategy that allows
the trust to keep earnings invested and growing in the annuity to help create a
financial legacy. The pass-in-kind strategy allows flexibility in investment strategies
and offers tax advantages that can help preserve growth in the trust for several
generations.

 

Principal® Pivot Series Variable Annuity can be used as a vehicle for this pass-in-kind
strategy and help your clients create generational wealth.

Pivot resources

Explaining trust-owned
annuities to clients

Grantor trusts

Non-grantor trusts

Death benefit - no
underwriting

Stretching
non-qualified money

Learn more

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.
1Not all trust-owned annuities are tax-deferred. Trusts established for the benefit of non-individuals may not receive tax-deferral.

 

Not FDIC or NCUA insured
May lose value  •  Not a deposit  •  No bank or credit union guarantee  •  Not insured by any federal government agency
For financial professional use only. Not for distribution to the public.

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

The Principal Pivot Series Variable Annuity is issued by Principal Life Insurance Company and distributed by Principal Securities, Inc, 800-852-4450, member SIPC and/or independent broker/dealers. Securities offered by a Principal Securities, Inc. Registered Representative are offered through Principal Securities, Inc. Principal Life and Principal Securities, Inc. 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.
 
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