Principal Select Series Annuity
Help your clients save for retirement, balance their portfolio or generate a future stream of income without worries about market volatility with Principal Select Series Annuity. Principal Select Series is a single premium deferred annuity with a market value adjustment (MVA) and a 3-, 4-, 5-, 6-, 7- or 9-year guarantee period. It can be a good option for risk-averse clients with a lump sum of money to invest. It’s a lower-risk option that offers competitive rates for clients who don’t want to worry about the ups and downs of the stock market.
The interest rate is locked in for 3, 4, 5, 6, 7 or 9 years. At the end of the guarantee period, the interest rate will be determined annually, and surrender charges and MVA charges will end. If clients choose not to keep it, they can take the value of their account without paying any surrender or MVA charges.
* All guaranteed periods may not be available at all times, in all states, or in all distribution channels.
- Single premium deferred annuity with a market value adjustment
- Choice of 3-, 4-, 5-, 6- or 9-year interest rate guarantee period with matching surrender charge periods. (All guarantee periods may not be available at all times, in all states, or in all distribution channels).
- Minimum premium of $5,000 for qualified or nonqualified contracts ($10,000 for 3-year guarantee period only)
- Maximum premium of $2,000,000; up to $5,000,000 with home office approval
Individuals looking for a conservative investment opportunity and who have:
- Desire for creating guaranteed income*
- Maturing CDs
- Maxed-out 401(k) plans looking for additional ways to save tax-deferred
- Retirement plan distributions
- Existing IRAs
*Guarantees are based on claims-paying ability of Principal Life Insurance Company.
- Guarantee period – 3-, 4-, 5-, 6- 7- or 9-year
- Issue ages – 0 to 85
- Contribution limits
- Minimum initial premium – $5,000 qualified or nonqualified for 4-, 5-, 6- 7-, and 9-year, $10,000 for 3-year
- Maximum premium – $2,000,000
- Guaranteed minimum interest rate – set at contract issue and will not change for the life of the contract
- Premium credit – a premium payment may be credited to the accumulated value based on the premium payment made during the first contract year
- Free surrender amount – each year, the greater of 10% of the contract year’s beginning account value less any withdrawals made since contract anniversary OR the required minimum distribution without surrender charge
- Market value adjustment (MVA) – if funds in excess of free surrender amount are withdrawn before the end of the guarantee period, the amount will be adjusted based on interest rate conditions at that time
- Flexible withdrawal option – partial surrenders can be scheduled on an annual, semiannual, quarterly or monthly basis; clients can withdraw any amount up to the free surrender amount without paying any surrender charges or a market value adjustment
- Waiver of surrender charge – nursing home, terminal illness or disability
- Benefit options – wide range of life, joint life and fixed-period income options available; benefit option must be elected on or before the maturity date
- Surrender charges
|Guarantee Period||Contact Year|
*For New York, the surrender charges are as follows:
3-year: 7%, 6%, 5%;
4-year: 7%, 6%, 5%, 4%;
5-year: 7%, 6%, 5%, 4%;3%
6-year: 7%, 6%, 5%, 4%, 3%, 2%;
7-year: 7%, 6%, 5%, 4%, 3%, 2%; 1%
9-year is not available.
Key materials listed below. Additional materials are available.
Principal Select Series Annuity product description (RF1489)
Client-facing brochure that describes the features and benefits of the Principal Select Series Annuity, which offers a single premium deferred annuity with market value adjustment and a 3-, 4-, 5-, 6-, 7- or 9-year guarantee period. (All guarantee periods may not be available at all times, in all states or in all distribution channels).
Tax-qualified retirement arrangements, such as IRAs, SEPs, and SIMPLE-IRAs are tax-deferred. Consequently, an annuity should be used to fund an IRA, or other tax qualified retirement arrangement, to benefit from the annuity’s features other than tax deferral. These features may include guaranteed lifetime income, guaranteed minimum interest rates, and death benefits without surrender changes.
Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details.
Guarantees are based on the claims-paying ability of Principal Life Insurance Company.
Not FDIC or NCUA insured. May lose value. Not a deposit. No bank or credit union guarantee. Not insured by any federal government agency.