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Principal Strategic Income now available

06/27/2024

We’re happy to announce our newest annuity offering, Principal® Strategic Income. Modeled after our existing registered index-linked annuity (RILA) product, it offers growth potential through market-based investments while also protecting clients from some investment loss. 

It also features the Secure Income Protector rider to help clients create guaranteed lifetime income. Clients can build future income that’s safe from market loss.

With Principal® Strategic Income clients have the potential to:

•    accumulate assets through market-based investments.
•    benefit from tax-deferred growth.
•    grow their benefit base with market step ups. 
•    build a higher secure income payout percentage through deferral credits.
•    choose from two different payout options – level and tiered.

Principal® Strategic Income is an opportunity to offer clients what they want. It aligns with two recent trends—RILAs continue to grow in popularity,1 and more investors associate guaranteed income with peace of mind in retirement.2  
 

Marketing resources

These resources are available to learn more about the benefits of Principal® Strategic Income. All of these are approved to use with clients.

  • Principal® Strategic Income client brochure (RF2628) (PDF)
    Provides detailed information about the features and benefits of the product.
     
  • Principal® Strategic Income product overview (RF2629) (PDF)
    Highlights features and benefits.
     
  • Give clients investment growth even in down markets (RF2632) (PDF)
    Explains how the dual direction peak segment works.
     
  • Principal Strategic Income Historical Index Returns brochure (RF2594) (PDF) 
    Shows historical returns of each index.

Additional details

State approvals
Principal Strategic Income is approved in all states except Indiana, Missouri, New York, Oregon, Vermont, Virginia, and the District of Columbia. Approval in Nebraska begins July 1, 2024, and approval in Louisiana begins July 5, 2024.

Product support
Applications and servicing forms are now available. Illustrations will be available soon.

Product training
The National Association of Investment Companies (NAIC) requires carrier-specific product training before you can sell a Principal® Strategic Income contract. Training can be accessed using the links below.

Principal Financial Network 

Independent firm relationships 

 

Web-based access to the information you and your clients need

Access current and upcoming rates for all investment segments at principal.com/strategicincome.

Our secure principal.com website also provides 24/7 access for clients to check segment performance, set segment lock-in preferences, initiate transfers, view statements, and much more.

 

Electronic delivery of prospectus

A digital prospectus is available to send to your clients. The following steps must be taken prior to sale:

  1. eConsent form (DD9068) must be signed and returned to you.
  2. Once the form has been completed, send the digital link to the prospectus to your client.  
  3. Submit the form with the application.
  4. You must keep evidence in your records that the prospectus was delivered electronically to your client.

A printed prospectus is also available.

 

Give us a call

Principal is happy to help fill the growing need for guaranteed retirement income, and we’re committed to continuous improvement of our annuity lineup. We’re eager to answer your questions and help you learn more about Principal® Strategic Income.

Reach out to annuitysalesdesk@principal.com or call us at 866-309-1623.

 

1LIMRA, Nov. 2023

2 2023 Retirement Investors; Behaviors, Attitudes, and Financial Situations, LIMRA, 2023

For financial professional use only. Not for distribution to the public. 

May not be available in all states or with all broker dealers.

Principal® Strategic Income does not directly participate in any stock, equity investments, or index. It is not possible to invest directly in an index.

Investing involves risk, including possible loss of principal.

IMPORTANT CONSIDERATIONS
Index-linked deferred annuity contracts are complex insurance and investment vehicles. This Contract is a security and there is a risk of substantial loss of principal and earnings. The risk of loss may be greater when early withdrawals are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a segment option has increased. Clients should consult with a financial professional about the appropriateness of this product based on their financial situation and objectives.

There is risk that this segment interim value could be less than the original premium payment even if the applicable Index has been performing positively. The buffer or floor rate provides limited protection. There is a possibility of a significant amount of loss of the total premium payment, credited interest and prior earnings. In the index linked segment options it is possible that the total loss could be 100%. If clients choose to allocate amounts to an index linked segment option subject to a cap rate, that rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. The participation rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. It is possible to receive less than the full protection of the buffer rate or floor rate. Once a segment lock-In is executed, it is irrevocable for that segment term. A lock-in will not be applied retroactively and can only be exercised for the entire segment option. A segment lock-In may only be exercised once per segment term for each index-linked segment option. There is no guarantee that any particular segment option or Index will be available during the entire period.
Withdrawals will reduce the contract value and death benefit. Some withdrawals may be subject to additional charges and adjustments. Withdrawals before age 591/2 may be subject to a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.

Contract rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to rider for full details. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not obligations of, nor backed by, the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Annuity products and services are offered through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.

Annuities have limitations. They are long-term vehicles designed for retirement purposes. Annuities are not intended to fund short-term savings goals.
Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.

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