Automatic renewal and reup compensation change
Buying behavior suggests that clients who purchase fixed deferred annuities typically hold their contracts through the guarantee period and then look for new higher rates. Due to this, along with the Best Interest Team oversight of fixed annuity sales, we felt changes to our compensation structure for products with an automatic renewal seemed appropriate.
Effective March 1, 2019:
- We will begin to pay full standard compensation at automatic renewal for our products with a 30-day window (when surrender charges restart). This is similar to the compensation for exchanges to our Principal Income AnnuitySM and Principal Deferred Income AnnuitySM products.
- We will also make compensation adjustments retroactively on Principal Preferred Series Annuity contracts that already renewed, where reduced compensation was paid to reflect this new policy. This retroactive adjustment will occur by your March 15th statement.
Questions? Contact the Principal Annuities and Income Solutions sales team, 866.309.1623
For financial professional use only. Not for distribution to the public.
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