Think variable annuities are too expensive?
It might be time to rethink that.Take a closer look
If your clients are saving for retirement, or looking for ways to create retirement income, variable annuities can play an important role in their plans. They offer flexible investment options, tax-deferred growth and compounding, and guaranteed death benefits that don’t require underwriting. And they can be used to create a steady, guaranteed stream of income in retirement.
We offer two types of variable annuities to meet the different financial needs of your clients.
Principal® Pivot Series
Pivot is an investment-focused variable annuity with over 80 investment options, including lower-cost options that allow your client to design a well-balanced portfolio for a total annual cost under 2.00%.
Principal® Lifetime Income Solutions II
PLIS II is an income-focused variable annuity that can provide a source of guaranteed lifetime income. It offers clients a choice of three different guaranteed income riders. Bonus and step-up features provide investment growth regardless of market performance. Clients choose when to begin taking income.
Principal® Strategic Outcomes
Principal Strategic Outcomes is a registered index-linked annuity (RILA) that gives clients flexibility and control over their investment strategy. Various segment options and features help them balance growth opportunities with loss protection options.
Why a variable annuity?
You have access to many retirement income products to help your clients. So why consider a variable annuity?
Variable annuities can offer:
- Another way to save for retirement with no IRS contribution limits (nonqualified money)
- Tax-deferred growth and compounding interest on all earnings until a withdrawal is made
- Death benefit, with no underwriting, that passes outside of probate
- Control over investment choices
- Flexibility to move funds between subaccounts at no charge
- Automatic rebalancing to keep your investments in line with your financial goals
- A way to create a source of guaranteed income for life
Why a registered index-linked annuity?
Sales of RILA products continue to grow as more and more investors respond to the benefits of downside protection.1
Here are a few features that help our RILA stand out from the crowd.
- No fee for base contract.
- Higher participation rates and caps available for a fee on all index-linked segments.
- Fixed segment2 and 0% floor options available.
- Lock in segment performance at any time.
- Sustainability index not currently available in other investment products.
- Customer-friendly website allows clients to check rates, initiate segment transfers, and set lock-in thresholds.
We’ve been in business for over a century and in the variable annuities business for decades. We’re dedicated to helping your clients save enough so they have enough in retirement. That’s why we provide the tools, training, and resources to help you meet the needs of your clients.
Are you ready to have the retirement income conversation? You’ve come to the right place. 866-309-1623.
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If you need help setting up an account, give us a call at 866-309-1623.
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1 A Deeper Dive: 2021 Registered Index-Linked Sales, LIMRA, 2022
2 Amounts allocated to a fixed segment option earn interest at the applicable annual interest rate for the segment term. The annual interest rate declared at the beginning of the segment term is guaranteed until the segment end date. If you allocate your accumulated value to the fixed segment option, the value of that segment at any time will be equal to the accumulated value allocated on the fixed segment start date, plus interest during the segment term and minus any amount deducted during the segment term.
For financial professional use only. Not for distribution to the public.
Principal® Strategic Outcomes 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 the possible loss of principal.
Before investing in registered index-linked annuities, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus which can be obtained from your local representative or online at principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Principal Strategic Outcomes may not be available in all states or with all broker dealers.
Guarantees are based on the claims-paying ability of Principal Life Insurance Company. 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.
Variable annuities are issued by 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.
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.
Annuities have limitations. They are long-term vehicles designed for retirement purposes. Annuities are not intended to fund short-term savings goals.
Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details.
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.