Benefit VUL II (New York)
Principal Benefit Variable Universal Life II (Benefit VUL II) provides life insurance death benefit and can also help build cash value. It’s a great option to use for informally financing nonqualified executive benefits for business owners and key employees, or in addressing family protection and personal retirement income preservation.
View Product Guide (LV352) (login required).
- Beneficiaries receive a federal income tax-free death benefit.
- Top tier income out of the policy with competitive target premiums.
- Preferred partial surrenders.
- Zero net-cost policy loans years 11+.
- Over 90 investment options with well-known money managers across major style categories.
- Death Benefit Guarantee to age 65 or 85 as long as the client satisfies the premium requirement.* No additional charge, but death benefit guarantee premium requirements must be met.
- Lapse protection with a Life Paid-Up Rider assuring clients that heavily-loaned policies won't lapse and the policy will remain in force to age 121. There is a one-time charge with the rider is executed.
- Waiver of Specified Premium rider allows client to discontinue making premium payments if they become totally disabled.
- Extended Coverage rider extends the full death benefit beyond the policy’s original maturity date to the date of death.
* The Death Benefit Guarantee rider and all guarantees are subject to the claims-paying ability of Principal Life Insurance Company.
- Ages 35-55
- Small- to medium-sized businesses
- Business owners and key employees with yearly household incomes greater than $100,000
- Nonqualified plan financing options – Principal Executive Bonus PlusSM, Principal S Owner PlusSM and Key Person
- 0-75 - Standard; Non-Tobacco/Tobacco
- 20-75 - Preferred; Non-Tobacco/Tobacco
- 20-70 - Special underwriting programs; Non-Tobacco/Tobacco
- Fully Underwritten Cases
- Minimum $100,000
- Maximum issue amount for underwriting programs based upon reinsurance and underwriting programs limits.
Zero net-cost loans year 11 and beyond
- All outstanding loans are guaranteed to automatically convert to reduced loan cost after policy year 10.
- During extended maturity, loans convert to zero net cost.
- Choice of Guideline Premium Test or Cash Value Accumulation Test
For more information about Benefit VUL II, go to:
Benefit VUL II features over 90 investment options with well-known money managers across major style categories. We work with many fund companies to provide an array of underlying investment options managed by industry-leading investment advisors. Offering multiple, quality investment choices helps your clients find the right mix for their risk tolerance and investment objectives.
Asset allocation* solutions:
- Principal Strategic Asset Management (SAM) Portfolios — Targeted to the client’s risk tolerance and investment objectives.
- Principal LifeTime Accounts — Self-adjusting portfolios based on the client’s anticipated retirement date. **See below for important information about Principal LifeTime Accounts.
- TOPSTM Protected ETF Portfolios — Offer volatility protection with three growth objective options.
- Principal Self-build Models – Over 60 investment options to choose from with models based on the client’s risk tolerance.
View VUL Investment Options (PDF) (LV628) for an overview of the investment options available and selection process used when presenting VUL products from The Principal.
For the most current investment options, see Rates & Values on www.principal.com.
* No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
**About Principal LifeTime Accounts
Principal LifeTime Accounts invest in underlying Principal Funds and Principal Variable Contracts Funds and each is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. Investors choose the portfolio most closely matching their approximate retirement date. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The portfolio continues to be managed for approximately 15 years beyond the original target date. It is expected that within 10 to 15 years after its target year, the allocation will match that of the principal LifeTime Strategic Income investment option. Principal LifeTime portfolios assume the value of the investor’s account will be withdrawn gradually during retirement.
Neither the principal nor the underlying assets of the Principal LifeTime investment options are guaranteed at any time, including the target date. Investment risk remains at all times.
Key materials listed below.
Consumer Approach Brochure (LV347)
Use with prospects as you discuss the needs that Benefit VUL II can help solve.
Managing Your VUL Policy Through Market Shifts (LV379)
Learn how you can help clients manage their VUL policies through market fluctuations.
Materials approved for use with consumers. Key materials listed below.
Asset Allocation Questionnaire & Models Portfolio (BB11305)
Helps determine client investment objectives and tolerance for financial risk.