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Product, New Business, and Underwriting News – Life Insurance

01/10/2024

New rates for Principal Indexed Universal Life Accumulation IISM (IUL Accumulation II)

A new year brings renewed sales opportunities with IUL Accumulation II. Effective January 16, new-issue policies (in all states except New York) will have new rates. This includes higher caps and improved early cash values for your clients. 

With a simple, transparent design—and the same great features below—IUL Accumulation II is attractive to the business market. It offers death benefit protection and cash value growth—making it ideal for key employee retention and retirement or business owner retirement solutions. 

Key features

This product continues to offer your clients:

  • A choice of three index-linked accounts.
  • Optional, high-early cash surrender value rider that can provide businesses a balance sheet boost.
  • Innovative, automated income platform that helps maximize distributions and protect against unplanned tax events.

The new rates are updated on our Principal Life Illustration System and Winflex. 

IUL Accumulation II transition guidelines (BB12662) | IUL Accumulation II website

Questions? 

Contact the National Sales Desk at 800-654-4278 to learn how IUL Accumulation II can help your clients get the life insurance protection they need with attractive growth potential.



Help clients solve even more business needs in 2024!

Principal Executive Variable Universal Life IIISM (Executive VUL III) is designed specifically for the business market. In addition to the death benefit it provides, it can help with supplementing income, deferring or minimizing taxes, cash flow management, and liquidity needs.  

Effective January 16, the minimum premium for a case has been lowered to $10,000 (from $25,000), expanding the opportunities for you to offer this as a financing solution for your business clients. 

Executive VUL III offers business-friendly features:

  • High early cash value flexibility. The Enhanced Cash Value Rider boosts values in early policy years based on an enhancement percentage your client chooses.1
  • Quality investment options. Choose from over 125 options featuring well-known fund families and investment managers.
  • Automated income. Your clients benefit from our innovative process to help ensure the distribution phase is easy to start, efficient at providing income, and ends well for your client. 
  • Underwriting choice. Select from Guaranteed Issue/Simplified Issue, Principal Accelerated UnderwritingSM, Principal Business Solutions Enhanced Underwriting, or full underwriting.
  • Support for you before, during, and after the sale. Experienced case design and point-of-sale wholesaler support before and during the sale—and in-house plan and policy administration services afterward.

For marketing materials, visit the Executive VUL III website.



Backdating Term Conversions

Effective January 4, backdating to save age will be allowed for Term conversions. 

  • The Backdating Request form (DD1621-9) is required prior to policy issue. 
  • Any unused premium from the term policy will be applied to the new policy. 
  • For partial conversions, the most recent monthiversary will be required. For example, if a request to backdate to Dec. 6 was made and the monthiversary of the term policy was the 4th, the new policy would need to be backdated to Nov. 5 to save age. 
  • Backdating is not allowed when a term policy is beyond its final conversion date or the policy has lapsed.



New York eSignatures

When writing business in NY, here’s a reminder of what’s allowed for eSignature: 

  • It can only be accepted on select NY applications and supplemental forms.
  • Financial professionals and/or field offices must certify their vendor contract meets the security requirements of Principal® before use.  
  • DocuSign and Adobe Sign are the only approved eSignature vendors, to be used as follows:
    • DocuSign
      • Can be used for application and supplemental forms only. 
      • Cannot be used for delivery requirements. Only the proprietary eDelivery platform from Principal can be used in NY.
    • Adobe Sign
      • Cannot be used to obtain corrected or missing forms prior to issue or at delivery.
      • Cannot be used for delivery requirements. Only the proprietary eDelivery platform from Principal can be used in NY.
      • Cannot be used when the payor is other than the proposed insured or owner; wet signatures must be obtained by the financial professional.
  • Forms not approved for eSignature include:
    • NY Life Conversion Application – AA 1226
    • Application for Reinstatement of Policy – AA 174
    • Principal Executive Variable Ind Universal Life Supplemental Application – AA 4938 NY
    • Worksite term Life Insurance Application – AA 3450
    • Amendment to Adjustment & Conversion Applications – AA 4871
    • Respiratory Questionnaire – DD 1492



Reminder: use the new application in CA, FL, MT, ND, SD, WY


Effective Oct. 23, 2023, an updated life insurance application was introduced for use in CA, FL, MT, ND, SD, and WY. 

  • The transition period for using the previous version of the application has expired. All new applications for life insurance written in these states must use the new application. 
  • The previous version of the application will not be accepted, except to satisfy a final underwriting and/or administrative requirement for policy issuance.
  • Jan. 31 is the final day policies using comingled or complete prior-version applications for CA, FL, MT, ND, SD, and WY can be issued.
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