Corporate-Owned Life Insurance (for Nonqualified Deferred Compensation)
Nonqualified deferred compensation (NQDC) plans can help business owners attract and keep high-performing employees. And corporate-owned life insurance (COLI), including Principal Executive Variable Universal Life II (Executive VUL II), offers an attractive way to informally finance these plan. It features a valuable death benefit that can be used by the employer to recover plan costs or to provide survivor benefits. And it also offers tax-deferred cash-value buildup.
Executive VUL II insurance can help businesses finance plans of all sizes, with benefits including:
- Priced and designed specifically for deferred comp plans
- Quality investment options
- Full and business underwriting
- Comprehensive plan administration platform
- Available for both small- and large-case plans.
- Large selection of proprietary and outside investment divisions and advisors.
- Three death benefit options.
- Preferred partial surrenders.
- Death Benefit Guarantee rider to age 85.
- Complete policy and plan administrative services.
- Designed to finance nonqualified deferred compensation plans for corporate-owned life insurance cases, including
- Associations or similar entities
- Issue ages: 0-75 (standard/preferred, non-tobacco/tobacco varies by product); Maturity age: 121 with extended coverage available
- Zero net-cost loans year 11 and beyond
- Choice of IRS Section 7702 Test
- Cash Value Accumulation Test
- Guideline Premium/Cash Value Corridor Test
Executive VUL II offers an array of underlying investment options for clients, managed by industry-leading investment advisors. These diversified offerings can help your clients find the right mix of risk tolerance and investment objectives.
For the most current investment options, see Rates & Values on www.principal.com.
- View Executive VUL II Prospectus (PDF) (LV311A)
Key materials listed below.
Financing with COLI Consumer Brochure (BB12001)
Help clients understand what IUL insurance is and how it works.
NQDC Underwriting Process for Clients (NQ60)
Provide to clients to help them prepare for the underwriting call.
Key materials listed below.
Product Profile (LV636)
Learn what makes Executive VUL II ideal for deferred comp cases and what sets it apart in the market.
Product Guide (LV357)
Get detailed product information, including features, how it works, riders, investment options, and more.
Materials approved for use with consumers. Key materials listed below.
Required book that must precede or accompany EVUL II sales.
Principal LifeTime Accounts for NQDC Plans Brochure (BB12075)
Show plan participants how Principal LifeTime Portfolios can help with asset allocation and diversification decisions.
Principal SAM Portfolios for NQDC Plans Brochure (BB12076)
Show plan participants the simplicity of selecting investments with Strategic Asset Management (SAM) Portfolios.
Before investing in variable life insurance, investors should carefully consider the investment objectives, risks, charges and expenses of the policy and the underlying investment options or online at www.principal.com. This and other information is contained in the free prospectus and, if available, the summary prospectus that can be obtained from your local representative or online at www.principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Variable life insurance is subject to market risk, including the potential loss of the principal invested.
No investment strategy such as asset allocation or diversification can guarantee a profit or protect against loss in periods of declining value.
In exchange for the death benefit, life insurance products charge fees such as mortality and expense risk charges and surrender fees.
All guarantees are subject to the claims-paying ability of the issuing insurance company.