October 2023 Indexed Universal Life changes
09/29/2023
Recent economic factors have resulted in increased hedging costs associated with the index-linked accounts we offer. The increased costs make it necessary (for the first time in nearly three years) to make some minor adjustments to the cap and participation rates for our indexed universal life (IUL) policies. The change will apply to newly created segments for both new issue and existing policies and will be effective starting October 1. There is no change to floor rates or the segment charge (where applicable).
The Principal life illustration system and WinFlex will be updated with the new index cap rates effective October 1. The update will also include new maximum illustrated rates, which will be lower as a result of the reduced cap rates.
Index cap and participation rates
|
Product |
Index-linked account |
Rate Changed |
October |
September |
Change |
|
2023 |
2023 |
||||
|
Principal Indexed Universal Life Flex II℠ |
S&P 500® Price Return |
Cap |
8.50% |
9.00% |
-0.50% |
|
S&P 500® Total Return |
Cap |
11.00% |
13.00% |
-2.00% |
|
|
S&P 500® Total Return |
Participation |
100% |
110% |
-0.10% |
|
|
Principal Indexed Universal Life Accumulation II℠ |
S&P 500® Price Return |
Cap |
8.50% |
9.00% |
-0.50% |
|
S&P 500® Total Return |
Cap |
11.00% |
13.00% |
-2.00% |
|
|
S&P 500® Total Return |
Participation |
100% |
110% |
-0.10% |
|
|
S&P 500® Price Return High Cap |
Cap |
11.00% |
13.00% |
-2.00% |
|
|
Principal Indexed Universal Life Flex℠ |
S&P 500® Price Return |
Cap |
9.50% |
10.50% |
-1.00% |
|
S&P 500® Total Return |
Cap |
13.00% |
16.00% |
-3.00% |
|
|
S&P 500® Total Return |
Participation |
100% |
110% |
-0.10% |
|
|
Principal Indexed Universal Life Accumulation℠ |
S&P 500® Price Return |
Cap |
9.50% |
10.50% |
-1.00% |
|
S&P 500® Total Return |
Cap |
13.00% |
16.00% |
-3.00% |
|
|
S&P 500® Total Return |
Participation |
100% |
110% |
-0.10% |
Questions?
Contact the National Sales Desk at 800-654-4278.
Insurance products issued by Principal National Life Insurance Company (except in NY) and Principal Life Insurance Company®, and the companies available through the Preferred Product Network, Inc. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., Member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.